Correct Option
The correct option is 1 only
Explanation
Structural composition refers to the contribution of different sectors-Agriculture (Primary), Industry (Secondary), and Services (Tertiary)-to an economy's Gross Domestic Product (GDP). The standard model of economic development suggests a transition from an agrarian economy to an industrial one, and finally to a service-based economy.
Statement-wise Analysis
- Statement 1 is Correct: Historically, as nations develop, the contribution of the agricultural sector to GDP declines, while the share of the industrial sector rises and becomes dominant. This is the conventional path of structural transformation observed in most developed economies.
- Statement 2 is Incorrect: In India, the service sector grew rapidly and overtook agriculture earlier than implied. By the year 1990-91, the share of the service sector (approximately 40.5%) was already higher than that of agriculture (approximately 29.6%). Therefore, it is factually incorrect to state that the service sector share remained lower than agriculture by 1990.
- Statement 3 is Incorrect: India’s structural change is considered unique or "idiosyncratic" because it skipped the phase of industrial dominance. Unlike developed nations where industrialization drove growth before services took over, India shifted directly from an agriculture-dominated economy to a service-dominated economy. The industrial sector never reached the dominance levels seen in other developing or developed nations.
Key Takeaway: India's economic growth story is characterized by a "leapfrog" effect, where the economy transitioned directly from agrarian dominance to service sector dominance, bypassing the traditional phase of industrialization.