Structure of national income, Microeconomics

STRUCTURE OF NATIONAL INCOME:

The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy. When a country is in a state of underdevelopment, primary sector (agriculture and allied occupations) makes the largest contribution to the national income. As the country grows and gets developed, the contribution of the industrial and services sectors gradually increases. Therefore, on the basis of the composition of GDP, one can easily pronounce whether a country is developed or underdeveloped. 

Let us examine what has happened in India.  In India, over the period 1951-2005, the share of the primary sector in national income has fallen by about 40 per cent while that of the secondary and tertiary sectors has increased. This trend is projected to accelerate further in wake of liberalisation of the economy. This may happen primarily because of the following factors:  

  • Reduced restrictions on involvement of private sector in areas like software development and information services;  
  • Technological advances; and 
  • Lower fixed capital requirements. 
Posted Date: 11/10/2012 3:15:39 AM | Location : United States







Related Discussions:- Structure of national income, Assignment Help, Ask Question on Structure of national income, Get Answer, Expert's Help, Structure of national income Discussions

Write discussion on Structure of national income
Your posts are moderated
Related Questions
Supply of a commodity is functionally related to its price. The law of supply rated to this function relationship between price of a commodity and its supply. In contrast to the in

The main features of outward-oriented and inward-oriented development strategies. Inward- oriented as focus on reducing domestic reliance on imports by executing high barrier

what are the criticisms of modern theory of rent?

Deadline is 20 Hours... 1. A. Explain how one derives the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concav

The goal of sustainability requires that we address what three questions? The goal of sustainability needs that we address whether economic activities are financially sustainab




Transfer Payments: Governments typically redistribute a share of tax revenues back to specified groups of individuals in form of several social programs (like welfare benefits, pub

How might a “perfect” macro equilibrium be affected by (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?