Sectoral shares in Indian GDP: How to regard it?

• Differences in accounting framework complicate comparison of sectoral patterns.
• Constant price estimate of sectoral share is beset with conceptual problems.
• India's standing as a manufacturer lapsed from an average to a negative outlier.
• Aberrations in Chinese data overshadow India's position.

Some LDC'S provide their product estimates at producer's or market prices while others give it at factor cost making international comparison tricky. When input–output transactions tables are available and are given at factor cost, as in India, modifications based on such tables can give a rough approximation to market price estimates of sectoral shares. After such adjustments, making India's relative GDP shares comparable with those of other LDC's, and also controlling for China- influence, we have assessed the Indian sectoral structure in the context of the current international experience. We conclude that India's true performance is somewhat overshadowed by two factors—India's estimates for industry and manufacturing sectors showing a negative bias vis-à-vis its neighbors’ and aberrations in Chinese data.