Which one of the following statements about the changing composition of national income in India is correct?

Introduction / Context:
National income can be viewed as the sum of value added by agriculture, industry and services. As economies develop, the relative shares of these sectors typically change. In India, there has been a clear structural shift over the decades. This question checks whether candidates are aware of the broad direction of change in the shares of agriculture, manufacturing and services in India economic output.

Given Data / Assumptions:

• Four statements describe trends in the sectoral composition of India national income.
• Only one of these statements is broadly correct when seen over the period from independence to recent decades.
• We focus on long term trends rather than minor short term fluctuations.

Concept / Approach:
In development economics, there is a well known pattern in which economies move from being agriculture dominated to industry dominated and finally services dominated. India has experienced a significant rise in the share of services and a decline in the share of agriculture. The share of manufacturing has not collapsed but has not risen as dramatically as services. By matching these known trends to the statements given, we can identify which statement is correct.

Step-by-Step Solution:
Step 1: Consider the agriculture sector. At the time of independence, agriculture contributed a very large share to national income. Over time, as industry and services expanded, the relative share of agriculture declined significantly. Step 2: Look at the manufacturing or industrial sector. Its share did increase after independence, but the rise was not very sharp and has been relatively modest in recent decades compared to the expansion of services. Step 3: Observe the services sector. Over the last few decades, services such as information technology, financial services, trade, transport, communication and other business services have grown very fast. The share of services in gross domestic product has increased sharply and now forms the largest component. Step 4: Evaluate option A, which says that the share of manufacturing has declined. Over the very long term, the share of manufacturing does not show a clear sustained decline; it is better described as stagnant or modestly increasing at some periods, so this statement is not accurate. Step 5: Evaluate option B, which says that the share of the services sector has increased sharply. This matches the well known pattern of India growth story, in which services have become the dominant contributor. This statement is correct. Step 6: Evaluate option C, which claims that the share of agriculture has remained static. This is incorrect because the share of agriculture has clearly fallen over time. Step 7: Evaluate option D, which claims that the share of services has declined. This is opposite to the observed trend and is therefore incorrect.

Verification / Alternative check:
An alternative check is to think of common facts repeated in economic surveys and textbooks: services contribute well over half of India gross domestic product, industry contributes around a quarter, and agriculture contributes a much smaller share than in the early years after independence. This pattern confirms that the services share has increased sharply. No widely used source suggests a decline in the services share or a static share of agriculture. Therefore option B stands out as the only statement consistent with basic macroeconomic awareness.

Why Other Options Are Wrong:

• The share of manufacturing has not clearly declined over the entire post independence period, so option A is misleading.
• The share of agriculture has definitely declined, so option C is incorrect.
• The services sector share has risen, not fallen, so option D is wrong.

Common Pitfalls:
Students sometimes confuse absolute output with relative share. Agricultural output can rise in absolute terms even while its share in national income falls. Another pitfall is to focus only on a short window of time and to misinterpret minor cyclical movements as long term trends. Some candidates also assume that industrialisation must have made manufacturing the dominant sector, underestimating the role of services in India growth pattern. A broad, long term view of sectoral shares helps to avoid these errors.

Final Answer:
The share of the services sector in national income has increased sharply.