Question

Which sector contributes the most to Gross Domestic Product ?

• A. Primary sector
• B. Secondary sector
• C. Tertiary sector
• D. None of these

Hint:

Remember this important distinction for the Indian economy: The Tertiary (Service) sector is the largest contributor to GDP. However, the Primary (Agriculture) sector still employs the largest number of people.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The economy is divided into three sectors: \[\begin{array}{rl} \bullet & \text{Primary Sector: Agriculture and allied activities (e.g., farming, fishing, mining).} \\ \bullet & \text{Secondary Sector: Manufacturing and industry.} \\ \bullet & \text{Tertiary Sector: Services (e.g., banking, transport, IT, healthcare).} \\ \end{array}\] The question asks which sector has the largest share in India's Gross Domestic Product (GDP).

Step 2: Detailed Explanation:
Over the past few decades, the structure of the Indian economy has undergone a significant transformation. While the primary sector once dominated, the tertiary sector (service sector) has grown to become the largest contributor to India's GDP. It currently accounts for well over 50% of the national income.

Step 3: Final Answer:
The tertiary sector contributes the most to India's Gross Domestic Product.