Communication to emerge as largest contributor to GDP: Study

On 25 Aug 2009, 1531 hrs IST, PTI at http://economictimes.indiatimes.com/Comm-to-emerge-as-largest-contributor-to-GDP-Study/articleshow/4932743.cms.

MUMBAI: The communication sector will emerge as the largest contributor to India’s GDP and one of the major growth-drivers of the country’s economy in the next five-years, a study said.

“The communication sector is predicted to emerge as the single largest sector of India’s economy, with a 15.4 per cent share, equivalent to Rs 8,65,031 crore, of GDP by 2014-15,” National Council of Applied Economic Research (NCAER) said in its recent study ‘Economic Impact of the Commnication Sector in India’.

The communication sectors share of the total GDP has increased from 0.7 per cent in the 1980s and one per cent in the 1990s to 3.6 per cent during 2001-08. In 2007-08, the sector accounted for 5.7 per cent of GDP, the study said.

The sector’s ranking in terms of contribution to total GDP has moved from 17 in 1980-81 to eight in 2007-08 and is further expected to surpass all other sectors by 2014-15, assuming that all other sectors grow at an average growth rate observed during 2001-08, it said.

India’s transformation from an agrarian to a services economy, communication is recognised as the fastest growing sector, growing by 25.7 per cent during 2001-08, the study said.

It further said, “It (communication sector) will be one of the major drivers of the Indian economy in the next five years”.

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