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Agriculture contributes
nearly 49 per cent of the state’s income (table 2.2), compared to 25 per cent at
the all-India level; industry accounts for only 15 per cent, compared to 27 per
cent for the nation; and services account for 36 per cent of the state’s income,
in comparison to the all-India figure of 48 per cent. In recent years, the
sectoral composition has shifted from industry to services. While the combined
share of industry (manufacturing) and services has remained the same at around
52 per cent during the last decade and a half, the share of manufacturing has
declined to 2.5 per cent in 1995-96 from around 6 per cent in 1980-81. Public
administration has, by default, become the propelling force behind the growth of
services. In spite of high growth rates in the state, employment opportunities
outside the government have remained restricted.
Sectoral shares for the
period 1996-97 and 1997-98 according to the new GSDP series published by the CSO
are given in the table below.
Table 2. 3: Sectoral Shares of GSDP
at Current Prices
(per cent)
|
Sector |
1980-81 |
1985-86 |
1990-91 |
1993-94 |
1995-961 |
1995-962 |
1996-972 |
|
Agriculture and allied
Activities |
48.68 |
47.40 |
42.63 |
45.30 |
48.99 |
33.30 |
32.44 |
|
Industry |
20.91 |
19.62 |
14.74 |
14.90 |
14.94 |
19.37 |
17.47 |
|
Mining & quarrying |
0.23 |
0.21 |
0.21 |
0.26 |
0.22 |
0.21 |
0.12 |
|
Manufacturing |
6.07 |
5.35 |
3.97 |
3.04 |
2.51 |
4.94 |
4.61 |
|
Construction |
15.10 |
13.28 |
10.41 |
11.10 |
10.54 |
11.48 |
10.30 |
|
Services |
30.40 |
32.98 |
42.63 |
39.80 |
36.08 |
47.33 |
50.09 |
|
Transport |
1.11 |
2.55 |
3.65 |
3.05 |
2.63 |
2.34 |
3.39 |
|
Trade, hotels, etc. |
5.95 |
5.46 |
8.66 |
8.05 |
6.62 |
12.22 |
13.46 |
|
Public administration |
9.28 |
8.88 |
11.98 |
11.99 |
11.10 |
11.25 |
12.04 |
Note: 1. Provisional data.
2.
New estimates of GSDP published by CSO.
Source: Central Statistical
Organisation.
Constant Share of
Agriculture
Population has grown
faster than economic activity in the agricultural sector. With few employment
opportunities outside the sector, the growth of agricultural labour force has
also exceeded the growth of cultivated area. The mounting demographic pressure
and physical limits to cultivable land have made Sikkim a net importer of all
the essential agricultural goods.
Declining Share of Industry
Industry’s share in GSDP
is only 15 per cent, of which 10 per cent is accounted for by construction, and
2.5 per cent by registered manufacturing (table 2.2). Industrial activity is
quite rudimentary. There is virtually no organised private industry of any size
in the state. Nearly, all the units of any size are in the public sector, most
of which run at a loss.
Rising Share of Services
Of the 36 per cent share
of services in the state's income, 11 per cent is accounted for by traditional
subsistence activities, unskilled construction work or government employment.
The share of public administration has risen nearly by 2 per cent points during
the period, which in part reflects the philosophy that the government's major
task is to provide employment. For example, the Public Works Department
organises its work with the non-commercial objective of generating employment.
It justifies its demands for more funding for road building projects in remote
areas, not on the grounds that roads are important for economic development but
that these projects will result in more jobs.
From the new
estimates (shown separately in the last two columns of the table) it is clear
that share of agriculture has drastically declined to around 32 per cent in the
year 1996-97. Industry's share has shown a modest increase to around 17 per cent
in 1996-97which is still lower than the 21 per cent share it had in 1980-81. The
services sector has witnessed a large increase to around 50 per cent in 1996-97.
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