‘Structural change’ in India is said to be peculiar. Which of the following supports this statement?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The share of the service sector in India is more than that of agriculture or industry, like what we find in developed nations.
Usually, with development, industry becomes dominant first. India skipped this: by 1990 the service sector had the largest share of GDP, as in developed nations. That is why its change is called peculiar.
Option (1) The share of industry in the GDP became dominant by 1990, as usually happens with development. — Incorrect. Industry did not become dominant in India. This describes the usual path.
Option (2) The share of the service sector in India is more than that of agriculture or industry, like what we find in developed nations. — Correct. This is what makes it peculiar.
Option (3) The share of agriculture in the GDP was more than 50 per cent, as is usual for a poor country. — Incorrect. This was as expected for a poor country, so it is not peculiar.
Option (4) The share of agriculture in the GDP rose steadily between 1950-51 and 1990-91. — Incorrect. Agriculture’s share fell over this period.
NCERT (2026-27): “Box 2.4: The Service Sector As a country develops, it undergoes ‘structural change’. In the case of India, the structural change is peculiar. Usually, with development, the share of agriculture declines and the share of industry becomes dominant. At higher levels of development, the service sector contributes more to the GDP than the other two sectors. In India, the share of agriculture in the GDP was more than 50 per cent—as we would expect for a poor country. But by 1990 the share of the service sector was 40.59 per cent, more than that of agriculture or industry, like what we find in developed nations. …” |