National income trends

National Income indicates the aggregate value of money of the annual flow of final goods
and services in the national economy. Gross National Product (GNP), Gross Domestic
Product (GDP), Gross National Income (GNI), Net National Product (NNP), and Net
National Income (NNI) are some of it’s measures.
Let’s see the trends in national income over the years in terms of GDP for 4 major sectors

The Growth Rate of the Agriculture Sector in India GDP grew after independence for the
government of India placed special emphasis on the sector in its five-year plans. Further the
Green revolution took place in India and this gave a major boost to the agricultural sector for
irrigation facilities, provision of agriculture subsidies and credits, and improved technology.
This in turn helped to increase the Agriculture Growth Rate in India GDP.

The agricultural yield increased in India after independence but in the last few years it has
decreased. This in its turn has declined the Growth Rate of the Agricultural Sector in India
GDP. The total production of food grain was 212 million tonnes in 2001- 2002 and the next
year it declined to 174.2 million tonnes. Agriculture Growth Rate in India GDP declined by
5.2% in 2002- 2003. The Growth Rate of the Agriculture Sector in India GDP grew at the rate
of 1.7% each year between 2001- 2002 and 2003- 2004. This shows that Agriculture Growth
Rate in India GDP has grown very slowly in the last few yearsIn relative terms, the decline of
agriculture in the share of GDP from 24.7 to 20.5 is also good since the decline implies that
services and manufacturing are gaining share and that implies that we are moving away from
a subsistence economy.

For instance, here are some numbers of the share of agriculture in overall GDP of some
nations.
 Country % share of AG in GDP of various countries
Albania 54
Australia 3
Bangladesh 21
Belgium 1
China 17 (was 27% in 1990)
Ethiopia 49 (was 49% in 1990)
France 2
Germany 1
Ghana 36
Nepal 41
Pakistan 26
Sri Lanka 21
US 2
The level tells us roughly if the country is poor or not.Albania, Ethiopia,Nepal, Ghana —
economies with agriculture accounting for a large share of the GDP. Australia, France,
Germany, US — agriculture accounts for low single-digit shares of the GDP.