During the reform period after 1991, the growth of agriculture declined and the growth of the service sector went up. What did the industrial sector report during this period?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Fluctuation in its growth
In the reform period the industrial sector reported fluctuation: it fell steeply in 2012-13 and then grew again.
Option (1) Negative growth throughout the period — Incorrect. Industry’s growth rate stayed positive in every period from 1980-91 to 2021-22; after 2012-13 it showed continuous positive growth.
Option (2) The highest growth rate of the three sectors in every period — Incorrect. In several periods services grew faster than industry, for example 1992-2001 and 2012-13.
Option (3) Fluctuation in its growth — Correct. Its growth rose and fell from period to period.
Option (4) The growth that mainly drove the GDP growth of the period — Incorrect. GDP growth was mainly driven by the service sector.
Note: The growth table in this chapter is worth a slow look. A question can ask how one sector moved over the years, so read each row from left to right.
NCERT (2026-27): “3.6 Indian Economy during Reforms: an Assessment … During the reform period, the growth of agriculture has declined. While the industrial sector reported fluctuation, the growth of the service sector has gone up. This indicates that GDP growth is mainly driven by growth in the service sector. During 2012-13, there has been a setback in the growth rates of different sectors witnessed post–1991. While agriculture recorded a high growth rate during 2013–14, this sector witnessed small growth in 2021–22. The service sector continued to witness a high level of growth — higher than the overall GDP growth during 2007– 22. The industrial sector witnessed a steep decline during 2012–13, in the subsequent years it began to show a continuous positive growth. …”
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