UPSC Prelims 2002 Q37: Indian Economy – National Income & Economic Growth
With reference to the Indian economy, consider the following activities:
1. Agriculture, Forestry and Fishing
2. Manufacturing
3. Trade, Hotels, Transport and Communication
4. Financing, Insurance, Real Estate and Business services
The decreasing order of the contribution of these sectors to the Gross Domestic Product (GDP) at
factor cost at constant prices (2000 - 01) is
- (a) 3, 1, 2, 4
- (b) 1, 3, 4, 2
- (c) 3, 4, 1, 2
- (d) 1, 3, 2, 4
Answer: (d) 1, 3, 2, 4
Explanation
Sector shares of GDP at factor cost, 2000-01
| Sector | Approximate share of GDP at 1993-94 prices |
|---|---|
| 1. Agriculture, forestry and fishing | About 24.2% |
| 3. Trade, hotels, transport and communication | About 22.3% |
| 2. Manufacturing | About 17.2% |
| 4. Financing, insurance, real estate and business services | About 12.6% |
In decreasing order the sectors are agriculture and allied (24.2), trade, hotels, transport and communication (22.3), manufacturing (17.2), and financing, insurance, real estate and business services (12.6). That sequence is 1, 3, 2, 4. The stored key (c) puts trade above agriculture, which is wrong.
Answer: (d) 1, 3, 2, 4.
Why each option is right or wrong
- (a) Incorrect. It puts trade before agriculture, but agriculture was larger.
- (b) Incorrect. It puts financing above manufacturing, but manufacturing was larger.
- (c) Incorrect. The stored key is wrong; it puts trade and finance above agriculture and manufacturing.
- (d) CORRECT. 24.2 > 22.3 > 17.2 > 12.6.
Key point
Sector order of GDP in 2000-01: agriculture, trade-transport, manufacturing, finance-real estate.
Remember
Agriculture was still the largest single sector in 2000-01.
Common mistakes
- Trusting the stored key (c), which puts financing above agriculture.
- Ranking manufacturing above trade, hotels, transport and communication.
- Using present-day shares, where services lead.
Exam tip
Only option (d) places agriculture first and finance last, matching the data.
Sources
- Economic Survey 2001-02 — national income
- Central Statistical Organisation — quick estimates 2000-01