GS PrelimsEconomyNational Income Accounting2002 With reference to the Indian economy, consider the following activities:
1. Agriculture, Forestry and Fishing
2. Manufacturing
3. Trade, Hotels Transport and Communication
4. Financing, Insurance, Real Estate and Business services
The decreasing order of the contribution of these sectors to the Gross Domestic Product (GDP) at factor cost at constant prices (2000-01) is
Correct Answer: Option C
Explanation
1. The question asks for the decreasing order of contribution of four sectors to India's Gross Domestic Product (GDP) at factor cost at constant prices for the year 2000-01.
2. The four sectors are:
1: Agriculture, Forestry and Fishing (Primary Sector)
2: Manufacturing (Part of Secondary Sector)
3: Trade, Hotels Transport and Communication (Part of Tertiary/Services Sector)
4: Financing, Insurance, Real Estate and Business services (Part of Tertiary/Services Sector)
3. Around 2000-01, the Services sector (Tertiary) had become the largest contributor to India's GDP, surpassing the Primary sector (Agriculture). Within services, the Trade, Hotels, Transport and Communication group (3) was typically the largest sub-sector, followed closely by Financing, Insurance, Real Estate & Business Services (4).
4. The Primary sector (Agriculture etc. - 1) was the next largest contributor.
5. The Secondary sector (including Manufacturing - 2) contributed less than the Primary sector at that time.
6. Therefore, the approximate decreasing order of contribution was: Sector 3 > Sector 4 > Sector 1 > Sector 2.
7. This corresponds to the order 3, 4, 1, 2.
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