How UPA killed engines of economic growth

Description

The growth rate of our economy has declined from around 8 per cent in the mid part of the decade to nearly 5.5 per cent and is expected to be less than 5 per cent in this fiscal year. The Government and economists ascribe this to global slowdown as well as delayed decisions in acquiring land and providing clearances for major infrastructural projects. They are right but only to some extent. The share of service sector in GDP is around 65 per cent. Whenever the term ‘service sector' is mentioned, the immediate recall is IT and companies like Infosys or Wipro. Factually, all software related activities come under business services, which itself is less than 5 per cent of our National Income. We have mentioned the activities which constitute the service sector in Table-1. We observe that this sector encompasses diverse activities carried on by large multinationals as well as roadside entrepreneurs. Normally, construction is included in the secondary sector along with manufacturing in developed countries. But given the labour-intensive nature of construction and major single house construction by smaller contractors, we have included it in the service sector. Read more at: https://rvaidya2000.com/2013/08/21/how-upa-killed-engines-of-economic-growth/

Publication Date

21-8-2013

Publication Title

Niticentral.com

Keywords

Economics, Economic growth, Service sector, Software industry

Source Link URL

https://rvaidya2000.com/2013/08/21/how-upa-killed-engines-of-economic-growth/

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