Growth, Sectors and Structural Change

Agriculture and allied activities belong to the primary sector.

Manufacturing transforms raw materials into finished or semi-finished products.

Banking provides services and is classified in the tertiary sector.

It focuses on knowledge-intensive activities such as research, information technology and data analysis.

High-level decision-making and top-level services are often grouped in the quinary sector.

Structural change refers to shifts in the relative importance of sectors and types of economic activity.

Services have become a major contributor to India‘s output, while agriculture‘s share of GDP has declined.

Average labour productivity and value added per worker can be lower in agriculture than in other sectors.

Labour productivity measures output produced per unit of labour input, such as per worker or per hour.

Formal employment is generally associated with recognised employment arrangements and applicable legal or social-security protections.

Dairy farming is an allied activity that complements crop agriculture.

Food processing converts agricultural or other food raw materials into products for storage, consumption or sale.

The automobile industry supports component makers, dealerships, repair services and logistics.

An ancillary industry supplies components, parts or supporting services to a larger industry.

Sunrise sectors are emerging or rapidly developing areas expected to have significant growth potential.

The organised sector generally has more formal registration, records and regulatory coverage.

Clusters can improve access to suppliers, skilled workers, shared services and knowledge spillovers.

Urbanisation is the increasing share of a population living in urban areas.

Inclusive growth seeks to broaden participation in and benefits from economic progress.

Sustainable development seeks to meet present needs without undermining future generations‘ ability to meet theirs.