PREVIOUSLY ASKED IN:
WBPSC Miscellaneous Preliminary 2023
Answer
Service Sector
Explanation
The Service Sector (Tertiary Sector) makes the highest contribution to India's Gross Domestic Product (GDP), accounting for more than half (over 54%) of the total economic output. It includes IT, finance, healthcare, tourism, and transport. Interestingly, while the agricultural sector's contribution to the GDP is the lowest (around 18%), it still employs the largest percentage of the Indian workforce.
Key Points
- > Primary Sector: Agriculture, mining, fishing. (Lowest GDP share, highest employment).
- > Secondary Sector: Manufacturing, construction, industries. (Medium GDP share).
- > Tertiary Sector (Service): IT, banking, education. (Highest GDP share).
- > A shift towards the tertiary sector indicates a developing/developed economy.
- > India is characterized as a Mixed Economy.
- > GDP stands for Gross Domestic Product.
Additional Information
Three Sectors of Economy
| Sector | GDP Share (Approx) | Examples |
|---|---|---|
| Primary | ~18% | Farming, Fishing, Mining |
| Secondary | ~28% | Factories, Construction |
| Tertiary | ~54% | IT, Banking, Tourism |
Memory Tips
- Remember the paradox: Primary employs the most people but earns the least GDP. Tertiary employs fewer people but earns the most GDP.