ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sectoral Growth Rates in the Indian Economy

Sectoral Growth Rates in the Indian Economy

October 29, 1966 and in the small, by altering the controlled distribution pattern. It amounts to presenting the Government with a fait accompli, which has to be accepted by it. One recalls in this context, the analogous case when during the first two Plans at least private savings exceeded what was allowed for in the Plans, forcing THIS IS AN ATTEMPT to study the implications of the changes in income in different sectors of the Indian economy during the decade and a half of planning. It has been argued that in general there is a certain statistical relationship between inter-sectoral shift in income and working force and economic advancement.! One significant aspect of the Clark-Fisher2 thesis is that the proportion of tertiary industry (tertiary industries refer to services) grows steadily with economic advancement. The validity of the thesis has often been questioned.3 Leibenstein4 maintains that "the tertiary industries part of the Clark- Fisher thesis may be its weakest link." There are two aspects of the tertiary industries part of the Clark- Fisher thesis, viz, the occupational aspect and the "value added'' aspect. 5 As one examines the criticism of the Clark-Fisher thesis, it appears that the occupational aspect is the weak link of the thesis. It cannot be denied that there is sufficient statistical evidence to show that in the past as economies advanced, the ratio of the contribution (value added) of tertiary sector to the national income had increased.

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