Sectoral Analysis Indian Economy

Presented by
Dr. Pushpender Kumar
Goa University
Objective

• To study the contribution of agriculture, industry and service sector in

economic growth of India.
 METHODOLOGY

Period of
Study • 2001-2017 17 years

• Dependent – GDP
RM •
Variables Independent Dep-
• AGRI, INDS,
• SERV, MANU GDP as Proxy
Variable of
Tool: Regression Indian
Economy
Hypothesis-

• H0: There is no significant impact of Service, Agriculture, Industry and

Manufacturing sector on the growth of Indian Economy.
• H1: There is a significant impact of Service, Agriculture, Industry and
Manufacturing sector on the growth of Indian Economy.
• The table reveals the test of normality of the sample taken for testing of hypothesis.
• If the number of observation is obtained between 3 to 2000, Shapriro-Wilk test is
taken into consideration otherwise Kolmogorov-Smirnov is applied to test the
normality.
• Further it can be observed from the above table that significance p-values are more
than critical p-value at 5 per cent level of significance in both the cases. Hence it can
be concluded that the data set is normal
Null hypothesis is taken as there is no significant
correlation between the variables and the alternate
hypothesis is taken as there is a significant correlation
between the variables.
Observed that the correlation is found highly positive
between variables. In terms of significance level, the
relationship among variables is found significant as
the value is less than 0.05.
F value reveals about the model fit. As the p-value is
found to be 0.00 which is less than 0.05 at 5 per cent
level of significance, it can be concluded that the model
is perfectly fit to predict the variable

The intercept value (929.016) can be interpreted as the value of

dependent variable value (GDP) when values of independent variables
are zero. It is also called as constant value denote by alpha (α). The
coefficients value is 1.025 for Agriculture, 0.557 for Industry, 1.031 for
Services and 0.429 for Manufacturing.
It shows the rate of change in dependent variable (GDP) in respect of
independent variable. In the result, agriculture, industry and services are
found to be significant as the p value is less than 0.05 and Manufacturing
is found to be insignificant. Accordingly, the regression equation can be
estimated as-
GDP= 929.016 + 1.025Agriculture + 0.557Industry +1.031
Services