Composition of the key sectors to GSDP, “A case study of Madhya Pradesh from 2001-02 to 2015-16”

The Economy of the State of Madhya Pradesh is mainly agrarian and predominantly rural, with almost 70 per cent of its population engaged in agriculture, much above the all India average of 55 per cent. Agriculture and its allied services contribute 34% share in the state’s economy during 2015-16. The study analyzed the contribution of agricultural and other macro sectors in GDP of the state economy. Further the study also depicts the trend in year wise growth of macro sectors especially agricultural sector in GDP of the State. It is observed from the study that the agriculture sector output increased from 2064608 lakhs during the initial period to 7164083 during the final year of the study period. It also forms weak form of J-Curve which refers it increases at the increasing rate during the reference time period except a dip in 2002-2003 where it reaches next to the bottom level in magnitude i.e. Rs. 2062387 lakhs while as it reached to Rs. 7164083 lakhs at the end of the reference period i.e. 2015-16 which is about 3.47 times increase compared with the initial year of the reference period. The percentage share of agriculture, industry and services sectors was about 22%, 29% and 48% in the initial year of the reference period which reached to about 27%, 25% and 48% at the end of the reference period with respect to the same macro sectors of the state economy respectively. The average share of agriculture is observed to be the highest about 27% in the last four year phase of the reference period while as it was lowest in the third four year phase about 22% of the reference period. depicts that irregular variation have taken place over the reference period with volatile fluctuations in 2002-03 when it dipped by about 45 percent.