Difficulty: Easy
Correct Answer: Tertiary sector
Explanation:
Introduction / Context:
This question tests your knowledge of the changing structure of the Indian economy and its contribution to national income. Over time, economies typically move from agriculture dominated structures to industry driven and finally to service dominated structures. For India, understanding which sector currently contributes the most to Gross National Product is a common topic in general studies and economic awareness sections.
Given Data / Assumptions:
Concept / Approach:
The primary sector includes agriculture and allied activities. The secondary sector consists of manufacturing and industry. The tertiary sector covers services such as trade, transport, banking, communication, education, health, and information technology. In modern India, the service sector has grown rapidly and now accounts for well over half of national income, even though a large portion of the workforce is still engaged in agriculture. The question therefore expects you to know that services, or the tertiary sector, lead in contribution to GNP.
Step-by-Step Solution:
Step 1: Recall that at the time of independence, the primary sector dominated national income.Step 2: Note that with industrialisation, the secondary sector increased its share, but did not become the largest in India.Step 3: In the last few decades, services such as IT, finance, tourism, and communication have expanded strongly.Step 4: Official data show that the tertiary sector contributes the highest proportion to GDP and GNP.Step 5: Therefore, the correct choice is the tertiary sector.
Verification / Alternative Check:
Think of the sectors that are most visible in urban India, such as software services, banking, telecom, retail, and hospitality. These activities contribute heavily to income generation and tax collections. Agriculture, although still important for employment and food security, has a much smaller share in national income compared to services. This mental cross check supports the answer that services dominate GNP contribution.
Why Other Options Are Wrong:
The primary sector has a large share of employment but not of income. The secondary sector has grown but has not overtaken services in India. The public sector is not a separate production sector; it is an ownership category and cuts across all sectors. The quaternary sector term is sometimes used in advanced economics to describe knowledge based services, but it is not commonly used as a main sector in official national accounts, and in any case forms part of the tertiary sector overall.
Common Pitfalls:
Candidates often assume that because most people work in agriculture, the primary sector must dominate national income. This is not correct. Productivity per worker is much higher in services and industry than in agriculture. Another pitfall is confusing shares in employment with shares in income. Exam questions are very particular about whether they ask about output, GNP, GDP, or employment, so always read the wording carefully.
Final Answer:
The sector that contributes the largest share to India's Gross National Product is the tertiary sector, that is, the service sector.
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