Which of the following has been peculiar or noteworthy to the Indian economic growth story 1 Service...........

Economic Affairs Growth and Indicators

Which of the following has been peculiar or noteworthy to the Indian economic growth story?

1. Services sector has always grown at a slower rate than any other sector of the economy.

2. Agriculture sector has always employed the largest number of workers in the economy.

3. Services sector contributes more to the GDP than agriculture and manufacturing even though India is not an industrially developed country.

Select the correct answer using the codes below.

1 and 2 only

2 and 3 only

3 only

1 and 3 only

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Explanation:

As a country develops, it undergoes ‘structural change’. Usually, with development, the share of agriculture declines and the share of industry become dominant. At higher levels of development, the service sector contributes more to the GDP than the other two sectors. In the case of India, the structural change is ‘peculiar’ with regard to its sectoral composition especially services sector. Services sector has grown much faster compared to other sectors of the economy post-liberalization. Traditionally services sector growth is propelled by the manufacturing sector but in India services has overtaken manufacturing, in terms of GDP, even though manufacturing has not been fully developed. Hence, the service sector contributes more to the GDP (over 60%) than agriculture (14%) and manufacturing even though India is not a developed country