Why is structural change in India over the period of time considered to be peculiar?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Shift was seen in the GDP from the high contribution of agriculture sector to high contribution of service sector.
As a country develops, it undergoes a "structural change". In case of India, it is a peculiar case because usually development takes place when share of agriculture declines and the share of manufacturing sector increases in GDP. With the passage of time the share of service sector exceeds both the sectors. What happened in India after 1990 was that the decline in agriculture sector's share was compensated by increase in service sector's share which actually hampered the development of the nation. Development of manufacturing sector indicates increase in employment level, as it is the most labor absorbing sector of the economy.