What is the order of contribution of different sectors to GDP of India ?

Question

Accepted Answer

Option 1, "Tertiary > Secondary > Primary," is the correct order of contribution of different sectors to the GDP of India. Here's a detailed explanation supporting this:

1. **Tertiary Sector**: The tertiary sector, also known as the service sector, is the largest contributor to India's GDP. This sector includes industries such as information technology, telecommunications, finance, education, healthcare, and tourism. Over the years, India has seen significant growth in its service sector, driven by advancements in technology, globalization, and an increasing demand for services both domestically and internationally. The rapid expansion of IT and IT-enabled services has particularly bolstered the tertiary sector's contribution to the GDP.

2. **Secondary Sector**: The secondary sector, which encompasses manufacturing and industrial activities, is the second-largest contributor to India's GDP. This sector includes industries such as textiles, chemicals, steel, and automobiles. While the secondary sector has shown growth, especially with initiatives like "Make in India," it still lags behind the service sector in terms of GDP contribution. The manufacturing sector's growth is crucial for job creation and economic development, but it has not yet surpassed the service sector in GDP contribution.

3. **Primary Sector**: The primary sector, which includes agriculture, forestry, fishing, and mining, is the smallest contributor to India's GDP. Despite employing a significant portion of the population, the primary sector's contribution to GDP has been declining over the years. This is due to several factors, including low productivity, dependence on monsoons, and limited technological advancement compared to the other sectors. The shift towards industrialization and services has further reduced the primary sector's share in GDP.

**Why Other Options Are Incorrect**:

- **Option 2 (Tertiary > Primary > Secondary)**: This option incorrectly places the primary sector above the secondary sector. As mentioned, the primary sector's contribution to GDP is the smallest among the three, making this option incorrect.

- **Option 3 (Primary > Secondary > Tertiary)**: This option suggests that the primary sector is the largest contributor, which is not the case. The tertiary sector is the largest, followed by the secondary sector, making this option incorrect.

- **Option 4 (Primary > Tertiary > Secondary)**: This option also incorrectly places the primary sector as the largest contributor, which contradicts the actual economic structure where the tertiary sector leads, followed by the secondary sector.

In conclusion, Option 1 accurately reflects the current economic structure of India, where the service sector leads in GDP contribution, followed by the industrial sector, with the agricultural sector contributing the least.