Discuss the nature of sectoral contribution of income to national income of India since independence. Also Examine whether the changes in sectoral contribution to national income of India followed Kuznets-Clark hypothesis.

Agriculture’s Early Dominance

Agriculture contributed nearly 50% of national income at independence, mirrored in Andhra Pradesh3’s rural economy, reflecting a predominantly agrarian structure.

Industrial Sector’s Modest Share

Industry accounted for about one-sixth of income, constrained by the license-raj; Visakhapatnam port and industrial corridors in Andhra Pradesh supported regional industrial growth.

Decline in Agriculture’s Share

Agriculture’s share fell from over 50% in the early 1950s to 15.2%4 in 2023-24, but employment remains high at 46.1%, indicating low productivity, seen also in Rayalaseema.

Stagnant Industrial Growth

Industrial share stagnated around 15-16%, showing “premature deindustrialization,” despite Andhra Pradesh’s capital goods sector growth under the National Capital Goods Policy.

Rapid Services Expansion

Services now contribute over half of Gross Value Added5, boosted by liberalization and digital infrastructure like UPI and DBT; Andhra Pradesh’s service sector outpaces national averages.

Partial Conformity and Premature Tertiarisation

India shows agriculture decline and services growth but weak industrial expansion, deviating from Kuznets-Clark’s sequential model.

Sustainability Concerns

High agricultural employment and jobless growth raise questions about inclusive and sustainable development.