Question

Describe briefly changes that have taken place in the shares of different sectors in India’s GDP.

Answer 1

1. The primary sector’s share in India’s GDP has declined significantly over the years: from 40% in 1973 to 16% in 2019.
2. The secondary sector’s share has increased steadily: from 12% in 1973 to 34% in 2019.
3. The tertiary (service) sector has emerged as the largest contributor: it increased from 48% in 1973 to about 54% in 2019.
4. The decline in the primary sector share is due to the rapid growth of secondary and tertiary sectors.
5. The secondary sector's growth is driven by increased use of factory-produced goods at cheaper rates.
6. The tertiary sector’s rise is due to higher demand for services such as education, health, communication, and transportation.
7. The service sector has become very prominent post-economic reforms, with liberalisation, the IT revolution, and globalisation contributing to its growth.
8. The employment pattern shows a slower shift, with the primary sector still employing about 43% of workers in 2018-19, though its GDP share is low.
9. Secondary and tertiary sectors' shares in employment have also increased but not as fast as their GDP shares.