A Spearman Correlation Approach To Interrelations Between Population And Economic Sectors Of The Indian Economy

Abstract

The new economic reforms, commonly referred to as LPG (Liberalization, Privatization, and Globalization), were implemented with the objective of transforming the Indian economy into a globally competitive one. The economic growth of India has generated a business environment that is facilitating rapid economic expansion, despite occasional fluctuations. There have been studies on the structural transformation of Indian Economy pre and post-liberalization in the past research. Few researchers have also emphasized the causes and consequences, pros and cons and impact of these changes on the growth of Indian Economy. However, studies on the correlation between population growth and the growth of economic sectors of Indian economy have found very scarce space in academic research. Hence the researcher in this paper has provided a Spearman correlation approach to analyze the interrelations between population and economic sectors of the Indian Economy. The researcher has found a very strong negative correlation between Agriculture, forestry, fishing, value added (% of GDP), and population of India from 1961 -2022. However there is a moderate positive correlation between the industry (involving construction), value added (% of GDP), and population of India from 1961-2011. The researcher has also found a strong positive correlation between Services, value added (% of GDP), and the population of India from 1961-2022.