Question:

Identify the sectors into which the Indian economy is divided, for the calculation of GDP?

Updated On: Dec 18, 2025
  • Agriculture, Manufacturing and E-commerce
  • Primary and non-primary
  • Agriculture, Defence, Information Technology and Manufacturing
  • Government, Private and Social
  • Agriculture, Manufacturing and Services
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Approach Solution - 1

The Indian economy is traditionally divided into three main sectors for the calculation of Gross Domestic Product (GDP). These sectors accurately describe the various areas of economic activity and help in assessing the economic performance of the country. Let's examine these sectors:

  1. Agriculture Sector: This sector includes all activities related to farming, forestry, fishing, and livestock. It is a crucial part of the Indian economy and provides employment to a large section of the population. It forms the primary stage in the production chain.
  2. Manufacturing Sector: This sector involves the processing of raw materials and manufacturing of goods. It includes various industries such as textiles, electronics, automobiles, and more. The manufacturing sector is significant for economic growth as it helps in creating infrastructure and increasing exports.
  3. Services Sector: Also known as the tertiary sector, it comprises businesses that provide services rather than producing physical goods. This includes sectors such as Information Technology, Finance, Healthcare, Education, and Tourism. Over the years, the services sector has become the largest contributor to India's GDP.

In the given options, we need to identify which correctly represents these sectors:

  • Agriculture, Manufacturing and E-commerce: While E-commerce is a growing part of the economy, it is not a distinct sector for GDP classification; rather, it falls under the Services sector.
  • Primary and non-primary: These are broader categories that do not specifically align with the recognized sectors of GDP calculation.
  • Agriculture, Defence, Information Technology and Manufacturing: Defence and Information Technology are part of government and services sectors, respectively, but are not grouped like this for GDP purposes.
  • Government, Private and Social: These categories relate more to ownership types rather than economic sectors.
  • Agriculture, Manufacturing and Services: This option accurately represents the three main sectors used for GDP calculation.

Therefore, the correct answer is: Agriculture, Manufacturing and Services.

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Approach Solution -2

The Indian economy is divided into three main sectors for the calculation of Gross Domestic Product (GDP): Agriculture, Manufacturing, and Services.

SectorDescription
AgricultureThis sector includes all activities related to farming, forestry, and fishing. It is considered the primary sector as it directly exploits natural resources.
ManufacturingThis involves the production of goods in factories. It is part of the secondary sector, transforming raw materials from the primary sector into finished goods.
ServicesAlso known as the tertiary sector, it includes a wide range of activities such as healthcare, education, banking, and other services that support individuals and businesses.

These sectors collectively contribute to the nation's GDP by representing the diverse economic activities within the country.

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