Difficulty: Easy
Correct Answer: tertiary sector (services such as IT, trade, and finance)
Explanation:
Introduction / Context:
This question examines your understanding of structural changes in the Indian economy. Over time, different sectors have grown at different speeds, changing their relative contribution to national income. In recent decades, the service or tertiary sector has played a leading role in Indias economic growth. Recognising this trend is important for questions on growth, development, and sectoral composition of GDP.
Given Data / Assumptions:
Concept / Approach:
The primary sector includes agriculture, forestry, and fishing. The secondary sector covers manufacturing, construction, and industry. The tertiary sector includes services such as trade, transport, finance, real estate, information technology, communication, tourism, education, and health. In India, growth in services has been especially strong, driven by IT and business process outsourcing, financial services, telecommunications, and modern retail. As a result, the tertiary sector now contributes the largest share to GDP and has expanded more rapidly than the primary and secondary sectors.
Step-by-Step Solution:
Step 1: Recall that Indias GDP composition has shifted from agriculture toward services over the last several decades.Step 2: In the most recent decade, services like IT, banking, telecom, and tourism have grown at high rates.Step 3: Agricultural growth has been more modest and subject to monsoon dependence.Step 4: Manufacturing has grown but has not matched the service sector in terms of share and speed.Step 5: Therefore, the sector that has shown the most remarkable expansion is the tertiary or services sector.
Verification / Alternative check:
Looking at any recent Economic Survey or basic data on the Indian economy, you will find that services account for well over half of GDP, whereas agriculture contributes a much smaller share. For example, the IT and business process management industry alone contributes a significant percentage of GDP and exports. This supports the widely accepted view that India is now a service led economy, not primarily an agricultural or manufacturing led one.
Why Other Options Are Wrong:
The primary sector remains important for employment and food security but has not shown the same high growth rate as services. The secondary sector, including manufacturing, has expanded but has often been described as not growing as fast as desired, leading to debate about missing manufacturing growth. Mining and quarrying is a small and volatile component and cannot be called the main driver. Handloom and cottage industries are important for traditional employment but do not dominate GDP growth.
Common Pitfalls:
Some learners assume that because most people in India still work in agriculture, the primary sector must be the most dynamic. However, employment share and income share are different concepts. Another pitfall is to think that manufacturing must lead growth as it did historically in many developed countries. India has followed a somewhat different pattern, with services playing a disproportionately large role, so it is important to update older models with actual data from the Indian case.
Final Answer:
During the last decade, the sector that has shown the most remarkable expansion in the Indian economy is the tertiary sector (services such as IT, trade, and finance).
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