Question

Which is the most labour absorbing sector of the Indian economy?

Answer 1

The primary sector that is agriculture is the most labour-absorbing sector of the Indian economy.

1. In 2020, 41.49 percent of the workforce in India were employed in agriculture.
2. The share of people employed in Agriculture sector is reducing.
3. The share of agriculture in GDP increased to 19.9 per cent in 2020-21 from 17.8 per cent in 2019-20.
4. India is ranked as the second-largest producer of rice, wheat, groundnut.
5. India has emerged as the second-largest producer of vegetables and fruits in the world.
6. India is the world’s largest producer of pulses, jute, sugarcane, cotton, and milk.
7. India has the largest livestock population of around 535.78 million, which translates to around 31% of the world population.
8. India is among the 15 leading exporters of agricultural products in the world.
9. India is one of the leading producers of spices, fish, poultry, livestock, and plantation crops.
10. Agriculture’s contribution to GDP has steadily declined from 1951 to 2011.
11. The service sector is the largest contributor to GDP in India.
12. The contribution of the service sector in India to the country’s GDP is a lion’s share of over 60%.
13. Sevice sector still employs only 25% of the labour force
14. The services sector accounts for 54.77% of total India’s GVA.
15. After the services sector, the next highest contributor to the Indian economy is the Manufacturing and Industry sector which contributes around 29% of the GDP and employs 22% of the labour force.