Question

Discuss the changes in shares of different sectors in GDP.

Answer 1

The three major sectors are Agriculture, Industry and Service sector.

i) Agriculture Sector: It is the primary sector of the economy. After Independence, it was the major contributor in the GDP. But as
industrialisation came into existence, setting up of industries, factories, etc increased the number of jobs and generated more
employment. This led to an increase in the demands of their products. So, the contribution of the Agricultural sector to the GDP has
declined and has come down at 17%.

ii) Industry Sector: As Industrialisation came into existence, setting up of industries, factories, etc increased the number of jobs and
generated more employment. This led to an increase in the demands of their products. This sector includes 'Mining & quarrying,'
Manufacturing Gas, Electricity, Construction, and Water supply. This is also known as the secondary sectors of the economy.
Currently, it is contributing to around 31% of the Indian GDP.

iii) Services Sector: Services sector includes Financial, real estate & professional services, Public Administration, defense and other
services, trade, hotels, transport, communication and services related to broadcasting. This sector is also known as a tertiary sector of
the economy. Currently, this sector is the major contributor to the GDP at 53% of GDP.