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
If a 10% increase in the price of computers leads to a 20% reduction in the quantity demanded, what is the coefficient of demand elasticity? 2. A local government wants to increase

Look at a recent copy of a newspaper . a. What is the top economic news story? With which of the big questions does it deal? (It must deal with at least one of them and might d

I want to know all about equilibruim consumer equilibruim firms equilibruim nd market equilibruim technically also??

Jeremy is an economics student who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u

What is the classical model's explanation for involuntary unemployment? According to the classical model, involuntary unemployment only increases when there is something impedi


what is pooling equilibrium

"Dr. Arata Kochi, the World Health Organisation malaria chief,... [says that] eradication is counterproductive. With enough money, he said, current tools like nets, medicines and D

Chemical properties of p block elements

Q. What do you meant by Enclosures? Enclosures: A historic process in Britain and other European countries, in very early years of capitalism, in that lands formerly held and u