The strength of these sectoral shares can be judged by the productivity accruing to them. Thus while in both India and Asean, agriculture has about 22 per cent share in GDP, India's farm sector employs about 60.5 per cent of its total workforce and Asean's 46.5 per cent.Clearly, farm productivity is higher in Asean. However, it is also interesting to note that while the services sector has a similar share of about 50 per cent of GDP in both countries, India employs only 22.7 per cent of its workforce in services and Asean employs 41.5 per cent. The trend in productivity is, apparently, reversed here.
As for China, in agriculture its share of GDP is only 15 per cent but the share in employment is 50 per cent, indicating a low productivity similar to India. In the services sector, it performs slightly better with an income share of 32 per cent and an employment share of about 28 per cent.
However, where China comprehensively outshines both India and Asean is in industry. Over half of its income accrues from this sector, while only 22 per cent of the workforce is employed in industry. This indicates a highly productive industrial set-up in China.
India is clearly a nation of farmers. Is Asean a society of shopkeepers? One thing is clear. Industry does not and cannot employ the majority of the working population. The paradox of modern production technology making workers redundant is visible. But without a large industrial base is a large service sector possible?
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