Which of the following is a feature of Indian economy?

The correct answer is Option 2: Contribution of agriculture to employment is highest

India is an agrarian economy and provides employment to the majority of its population. Nearly, 55% of the population of India is engaged in agriculture sector only. Thus, the contribution of agriculture sector to employment is highest in the country. 

Here's why:

Option 1: Declining growth rate of service sector: This is incorrect. The service sector has witnessed a very high growth rate in comparison to other sectors in India in recent decades.

Option 3: High level of human capital formation. This is incorrect. This refers to a skilled workforce. While India is improving in this area, it still has a significant portion of unskilled labor.

Option 4: Contribution of agriculture to GDP is the highest. This is also incorrect. Contribution of service sector in GDP is maximum.