The table gives the percentage shares of the three sectors in India’s GDP and in its workforce:
| Sector | Share in GDP 1950–51 | Share in GDP 1990–91 | Share in workforce 1950–51 | Share in workforce 1990–91 |
|---|---|---|---|---|
| Agriculture | 59.0 | 34.9 | 72.1 | 66.8 |
| Industry | 13.0 | 24.6 | 10.7 | 12.7 |
| Services | 28.0 | 40.5 | 17.2 | 20.5 |
Which of the following is correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Agriculture’s share in GDP fell much more than its share in the workforce, as industry and services did not absorb farm workers.
Agriculture’s share in GDP fell by about 24 points (59.0 to 34.9). Its share in the workforce fell by only about 5 points (72.1 to 66.8). People stayed on farms because industry and services did not absorb them.
Option (1) Agriculture’s share in the workforce fell faster than its share in GDP, as the green revolution freed farm labour. — Incorrect. The workforce share fell more slowly, not faster.
Option (2) Services overtook agriculture in both the share of GDP and the share of the workforce by 1990–91. — Incorrect. Services led in GDP share (40.5), but agriculture still had most of the workforce (66.8).
Option (3) Agriculture’s share in GDP fell much more than its share in the workforce, as industry and services did not absorb farm workers. — Correct. This matches both the table and the reason economists give.
Option (4) Industry’s share in the workforce rose by more percentage points than its share in GDP. — Incorrect. Industry’s workforce share rose by 2 points, while its GDP share rose by 11.6 points.
NCERT (2026-27): “2.3 Agriculture … In India, between 1950 and 1990, the proportion of GDP contributed by agriculture declined significantly but not the population depending on it … Why was such a large proportion of the population engaged in agriculture although agricultural output could have grown with much less people working in the sector? The answer is that the industrial sector and the service sector did not absorb the people working in the agricultural sector. Many economists call this an important failure of our policies followed during 1950-1990.” Work These Out … “Prepare pie charts on the occupational structure of the Indian economy available in the following table. Discuss the possible reasons for the change in the shape of pies.”
Work These Out … “Construct a pie chart for the following table on sectoral contribution to GDP and discuss the difference in the contribution of the sectors in the light of effects of development during 1950-91.”
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