Question

Using the following data, analyse the sectoral contribution of India and Pakistan towards Gross Value Added (GVA).

Sector	Contribution to GVA			Distribution of Workforce
	India	China	Pakistan	India	China	Pakistan
Agriculture	16	7	24	43	26	41
Industry	30	41	19	25	28	24
Services	54	52	57	32	46	35
Total	100	100	100	100	100	100

Hint:

High employment with low GVA in a sector reflects low productivity. A shift from agriculture to industry and services is key for economic transformation.

Answer 1

From the data provided, we can interpret the economic structure and productivity in each country:

• India: The agriculture sector employs 43% of the workforce but contributes only 16% to GVA, indicating low productivity. The services sector, with only 32% of the workforce, contributes the highest to GVA (54%), which reflects high productivity and a growing service-based economy.
• Pakistan: Agriculture also employs a high share (41%) but contributes 24% to GVA. The services sector dominates in terms of contribution to GVA (57%) with 35% of the workforce. This shows a reliance on services, but relatively higher productivity in agriculture compared to India.
• China: Shows a more balanced and efficient structure. Agriculture has both low employment (26%) and low GVA (7%), while industry leads with 41% GVA and 28% workforce, reflecting strong industrial growth and productivity. Services are also efficient, contributing 52% GVA with 46% of the workforce.

Hence, China demonstrates better alignment between sectoral employment and GVA contribution, while India and Pakistan still show a structural imbalance, especially in agriculture.