The economies of these regions also have some structural variations among them. Half of India and Asean's income accrues from the services sector. However, a significant share of India's services sector is in the unorganised segment. The heavy dependence on services in both these countries is in contrast to China, which owes half of its income to industry.
The last 10 years has also seen a shift in these shares, especially in India and China. In the first 10 years after economic reforms, in India the agriculture sector's share in GDP went down by about 10 per cent, while that of services moved up by roughly the same percentage. China also saw a similar shift away from agriculture during the same period. However, in China, this decline was made up by industry.
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.
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