Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): The contribution made by the agricultural, industrial and service sectors to the GDP makes up the structural composition of an economy.
Reason (R): In India, by 1990, the share of agriculture in GDP was more than that of the service sector.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) is true but (R) is false.
Assertion (A): The contribution made by the agricultural, industrial and service sectors to the GDP makes up the structural composition of an economy. — True. The share of each sector in GDP is the structural composition.
Reason (R): In India, by 1990, the share of agriculture in GDP was more than that of the service sector. — False. By 1990 the service sector had the largest share, 40.59 per cent, more than agriculture or industry.
NCERT (2026-27): “2.2 The Goals of Five Year Plans … The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector and the service sector. The contribution made by each of these sectors makes up the structural composition of the economy. In some countries, growth in agriculture contributes more to the GDP growth, while in some countries the growth in the service sector contributes more to GDP growth (see Box 2.4).” “Box 2.4: The Service Sector … 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. …” |