Which of the following statements about the Indian economy are correct?
(A) The share of the industrial sector in GDP is higher than the agriculture sector.
(B) The agriculture sector employs the highest percentage of the Indian work force.
(C) India is classified as a developed economy by the World Bank.
(D) The service sector has the highest contribution to the GDP of the Indian Economy.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
The Indian economy is divided into three sectors: agriculture (primary), industry (secondary) and services (tertiary). The services sector now produces the largest share of output, while agriculture still gives work to the largest number of people.
(A) The share of the industrial sector in GDP is higher than the agriculture sector. Correct. Industry contributes about a quarter of India’s gross value added, against about 16–18% from agriculture and allied activities.
(B) The agriculture sector employs the highest percentage of the Indian work force. Correct. About 45% of India’s workers are still engaged in agriculture, more than in industry or services.
(C) India is classified as a developed economy by the World Bank. Incorrect. The World Bank groups countries by income per head, and India is a lower-middle-income (developing) economy, not a high-income one.
(D) The service sector has the highest contribution to the GDP of the Indian Economy. Correct. Services such as trade, transport, banking and IT produce more than half of India’s GDP.