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Gross Domestic Product and Sectors

The growth of China's Gross Domestic Product is a very widely talked topic in the world. Their GDP is 87.2 Trillion while India's is 83.3 trillion. The GDP of Pakistan is about ten percent of India's GDP.

Growth of GDP in % from 1980-2003




















China has managed to maintain a growth rate of around 10% while the other countries even developed countries struggled to maintain a rate of 5%. In the period between 1980-90 India had the lowest growth rate. Though our growth rate increased marginally, Pakistan's rate declined steeply. The reasons for Pakistan's decline are cited to be the reforms introduced in 1988 and political instability.

Let us now consider the sectors which contribute to the GDP. As seen earlier both in Pakistan and China the urban sector contributes more as the concentration of workforce in the urban sector is more than that in the rural sector. Due to geographical reasons, the cultivation land available in China is just 10% of the whole area. This is just around 40% of the total cultivable land in India. Till the 1980s, about 80% of the people in China were dependent on agriculture for their livelihood. After the introduction of the reforms, the government encouraged them to get alternate sources of income through arts and crafts and other industries.

Sectoral Share of Employment and GDP %


Contribution to GDP (2003)

Distribution of workforce

India China Pakistan India China Pakistan
Agriculture 23 15 25 60 54 49
Industry 26 53 23 14 27 18
Service 51 22 54 26 19 37
Total 100 100 100 100 100 100


It can be seen from the above table that only 15% of the GDP of China is contributed by the agricultural sector and about 54% of the population is dependent on it whereas the industrial sector contributes 54%. In India about 60% of the population is dependent on agriculture for a livelihood while the contribution to the GDP is a mere 23%. The service sector contributes the most to the GDP in India and Pakistan.

In the normal course of economic development of a nation, there is first a shift of employment from agriculture to industry and then from industry to service. In India and Pakistan there has been a direct shift to the service sector which is emerging as the main player in the economic development. Pakistan has been the fastest to make a shift to the service sector.

Trends of Output Growth In Different Sectors 1980-2003


1980 - 90

1990 - 2002 - 03

Agriculture Industry Service Agriculture Industry Service
India 3.1 7.4 6.9 2.7 6.6 7.9
China 5.9 10.8 13.5 3.9 11.8 8.8
Pakistan 4 7.7 6.8 3.7 3.9 4.3


It can bee seen that over the last two decades, the contribution of agriculture in all the three countries has decreased while in China the industrial sector has managed to have a two digit growth rate and has managed to be the main contributor while in India it is the service industry. Pakistan has shown a decline in all the three sectors.

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