Assignment # 01CONTRIBUTION OF AGRICULTURE, INDUSTRIES AND SERVICE SECTOR

TO GDP IN BANGLADESH FROM LATE 1950 TO TILL NOW

Prepared For:Prof. M.Z. Mamun

Course Instructor: Operation Management

Perpared by:Shamima Nasrin

ID No. 092051058

MBA Program University of Liberal Arts Bangladesh, (ULAB)

October 23, 2009

The gross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's overall economic performance. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living. In the name "Gross Domestic Product”, "Gross" means that GDP measures production regardless of the various uses to which that production can be put. "Domestic" means that GDP measures production that takes place within the country's borders.

Bangladesh is a based on agriculture country because majority percent people are farmer. A brief discussion of Bangladesh economy may help us to understand its GDP. Economy of Bangladesh is composed of three main sectors 1. Agriculture, 2. Industry, 3. Service.

Agriculture sector includes crops, forestry, livestock & fisheries. Main agriculture food products are cereals, pulses, gur/sugar, milk, meat, fish, fruits, vegetables, oil etc. Major industrial crops are tea, jute, tobacco etc. Total cultivable area was 2.26 core areas in the survey of 1983-84, which decreased to 1.64 core areas in 1995-96.

There are three categories of industries of industry in Bangladesh- Large Scale Industries, Medium Scale Industries & Small Cottage Industries.

Major industries are referred in the following—

1. Food, Beverage & Tobacco.2. Textile, Apparel and leather.3. Wood 7 wood products.4. Paper, Paper products.5. Chemicals and Chemical product6. Non- metallic Mineral products.7. Basic Metal industries.8. Fabricated Metal products.9. Other industries & handicraft.

Recently, this is the largest sector in the percentage contribution to GDP. Its major sub-sector are construction, utility (power, gas, water), transport & storage, trade service, housing, public administration and defense, banking insurance and other professionals.

Contribution of three major Sector in GDP of Bangladesh (1950-Till Now)

YearSector Wise GDP Share in %

Agriculture Industry Service Total (in %)

1941-50 70 4 26 100

1951-60 62 5 33 100

1961-70 55 10 35 100

1971-80 44 11 45 100

1981-90 32 12 56 100

1991-2000 25 15 60 100

2001-09 20.6 29.73 49.67 100

We see the agriculture sector decreasing growth rate during 1941-2009, agriculture sector contributed 70% of total GDP in 1950. Now agriculture sector has decreased to 20.6% in 2009. It is very catastrophic matter for our country because most of our village people depends on agriculture.

Growth rate during 1941-2009, Industry sector’s contribution has been increasing, though very slowly, it has a good impact on our economy and our movement towards the modern fast world. The sector has jumped to 29.73% from 15% in 2001-2009. Industry sector growth rate during this period 10.41%.

The Service sector growth rate during 1981-2000, Service sector’s contribution went higher than average. Now Service sector has decreased to 49.67% of total GDP.though it has declined but again we are very much optimistic about the intensification. It is good sign for our country because in developed countries, service sector contributes more shares in total GDP than other sectors.

Agriculture is the foundation on our country because large percentage of our people is either farmer or related with the sector. So we have to develop our agro base industry like jute industry, sugar industry, tea industry, oil industry etc.