IJSRP, Volume 6, Issue 2, February 2016 Edition [ISSN 2250-3153]
The paper studied that India’s agricultural share in GDP has been steadily declining at the rate of 1.69% per year , the industrial share in GDP in India has been catapulting at the rate of 0.93% per year and the service sector share in GDP in India has been increasing at the rate of 0.747% per year from 1950-51 to 2013-14 which are statistically significant. The sectoral shares have weak cointegration but the shares showed the bidirectional causality with growth rate. The VAR model is stable showing significant relation with previous period but impulse response functions are diverging and the residuals are not normal which was tested by Doornik-Hansen normality test.VECM showed that errors have been correcting speedily and the model is stable since AR polynomial roots lie inside the unit root circle. The sectoral shares and GDP growth rate have significant Beta convergence but insignificant sigma convergence in India during 1950-51-2013-14 which is not suited for sustainable development in India.