UPSC Prelims 2007 Q97: Indian Economy – National Income & Economic Growth
Which one of the following is the correct sequence in the decreasing order of contribution of
different sectors to the Gross Domestic Product of India?
- (a) Service - Industry - Agriculture
- (b) Service - Agriculture - Industry
- (c) Industry - Service - Agriculture
- (d) Industry - Agriculture - Service
Answer: (a) Service - Industry - Agriculture
Explanation
Sector shares in India's GDP
| Sector | Share of GVA (approx.) |
|---|---|
| Services (tertiary) | ~55% |
| Industry (secondary) | ~25-28% |
| Agriculture & allied (primary) | ~16-18% |
The order Services > Industry > Agriculture has held since the early 1990s.
In 2006-07 the shares were roughly 55% / 27% / 18%.
But employment is different: agriculture still employs about 45% of workers (PLFS).
This gap — big jobs share, small output share — shows low farm productivity.
Answer: (a) Service - Industry - Agriculture.
Why each option is right or wrong
- (a) CORRECT. Services > Industry > Agriculture in GDP share.
- (b) Incorrect. Agriculture's share is now below industry's.
- (c) Incorrect. Industry is second, not first — services lead.
- (d) Incorrect. Industry is not the largest, and services are not the smallest.
Key point
GDP share: Services (~55%) > Industry (~26%) > Agriculture (~17%). Employment: agriculture still largest (~45%).
Remember
India's GDP: Services > Industry > Agriculture.
Common mistakes
- Mixing output share with employment share — agriculture leads only in jobs.
- Thinking India followed the classic path (agriculture → industry → services). India jumped to services-led growth.
- Putting agriculture second because India is called an 'agrarian economy'.
Exam tip
Output: S > I > A. Jobs: A > S > I (roughly). Learn both orders together.
Sources
- Economic Survey of India — Statistical Appendix
- MoSPI — National Accounts Statistics
- NCERT Class XI — Indian Economic Development, Ch 2