The table gives the share of each sector in India’s GDP (per cent):
| Sector | 1950–51 | 1990–91 |
|---|---|---|
| Agriculture | 59.0 | 34.9 |
| Industry | 13.0 | 24.6 |
| Services | 28.0 | 40.5 |
Which of the following statements is correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Industry’s share nearly doubled, and such a rise is an important indicator of development.
Industry’s share rose from 13.0 to 24.6 per cent, nearly double. A rise in industry’s share of GDP is an important indicator of development.
Option (1) Agriculture’s share fell to less than half of its 1950–51 level. — Incorrect. Half of 59.0 is 29.5. The share fell to 34.9, which is more than half.
Option (2) Services became the largest sector by 1990–91, but its share began to grow only after 1991. — Incorrect. The share grew before 1991 too, from 28.0 to 40.5. The rise only speeded up after 1991.
Option (3) Industry’s share nearly doubled, and such a rise is an important indicator of development. — Correct. Both parts hold.
Option (4) Services gained more than industry, which made India’s structural change typical of poor countries. — Incorrect. A service sector larger than agriculture or industry is what we find in developed nations. That is why India’s change is called peculiar.
NCERT (2026-27): “2.5 Trade Policy: Import Substitution … Effect of Policies on Industrial Development: The achievements of India’s industrial sector during the first seven plans are impressive indeed. The proportion of GDP contributed by the industrial sector increased in the period from 13 per cent in 1950-51 to 24.6 per cent in 1990-91. The rise in the industry’s share of GDP is an important indicator of development. …” “Box 2.4: The Service Sector … 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. This phenomenon of growing share of the service sector was accelerated in the post 1991 period (this marked the onset of globalisation in the country which will be discussed in chapter 3).” |
