Question

On the basis of the given data, compare and analyse the distribution of workforce and its contribution to Gross Value added in India and China.

Hint:

A higher share of workforce in agriculture with low GVA indicates lower productivity in that sector, while a higher share in services with higher GVA shows a shift towards more productive sectors.

Answer 1

The following table provides the sectoral share of employment and GVA in India, China, and Pakistan for 2018-2019.
% Analysis Analysis: From the table, we can observe that: 1. Agriculture contributes the highest share to the workforce in India (43%), but its contribution to GVA is relatively low (16%). In contrast, China has a smaller portion of the workforce in agriculture (26%) and a much lower GVA contribution (7%). This suggests that India's agriculture is more labor-intensive with lower productivity. 2. Industry has a significantly higher share in China's economy (41%) as compared to India (30%), which is reflected in the higher GVA contribution from China (41%) compared to India (30%). This indicates that China's industrial sector is more productive. 3. Services is the dominant sector in India and China, contributing 54% and 52% to GVA respectively. However, India has a much smaller share of the workforce in services (32%) compared to China (46%). This suggests that China's service sector is more labor-intensive than India's.