After Independence, India chose planned development. Planners hoped that, as national output grew, more people would find a decent livelihood, and that more and more workers would move into the formal sector. To judge how far these hopes came true, economists study two developmental indicators over the years of planning: the growth of Gross Domestic Product (GDP) and the growth of employment. They also look at the industries in which people work and at the status with which they work.
Which of the following is the right order for a shift in occupational structure in order to take the country on the path of development?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Agriculture sector → Manufacturing sector → Service sector
As a country develops, labour flows from agriculture to industry and services. Much later, industry loses its share of jobs as the service sector expands rapidly. So the order is agriculture, then manufacturing, then services.
NCERT (2026-27): “6.5 Employment in Firms, Factories and Offices In the course of economic development of a country, labour flows from agriculture and other related activities to industry and services. In this process, workers migrate from rural to urban areas. Eventually, at a much later stage, the industrial sector begins to lose its share of total employment as the service sector enters a period of rapid expansion. …” |