Measuring Indian Economy During Reforms

Abstract

In this paper an attempt is made to assess t/1e dynamics of growth of Indian economy in general and challenges of service sector boom du ring the 'Take-off period. The estimated elasticity of share of growth implies that both industry and service sectors are more elastic and competing with each other to realize their shares in t/1e economy. The elasticity of growth with respect to growth of GDP is 0.11, 0.28 and 0.65 for agriculture, industry, and service sectors, respectively. T/Je correlation between overall GDP growth rate and growth of sub-groups of service sectors are positive signals of sustainability of service sector growth in the long run. The correlation coefficients of sub-groups of service sector with respect to growth of GDP is 0.59, 0.27 and 0.09 for 'THTC, 'FIREB,' and 'CSPS', respectively Tlzere is a significant growth/1 in telephones connections in India. At the end of March 2012, 951.35 /1/million people in India were connected with telephones. Knowledge Economy Index (KE[) has been improved from 2.75 in 1995 to3.06 in 2011.