The correct option is 1, 2 and 3.
Explanation
The question pertains to the structural transformation of economies, which describes how the contribution of different sectors (Agriculture, Industry, Services) to GDP and employment changes as a country develops. This is often analyzed using the Clark-Fisher hypothesis.
Statement-wise Analysis
- Statement 1 is Correct: In the classical theory of economic development, a country typically transitions from an agrarian economy to an industrial one, and finally to a service-based economy. As agricultural productivity increases, surplus labor moves to the manufacturing sector (Industry), and with further development, demand shifts toward the Service sector.
- Statement 2 is Correct: China followed this classical pattern of structural transformation. It established a massive industrial and manufacturing base which absorbed a significant portion of the workforce moving out of agriculture. Consequently, China experienced a shift from Agriculture to Industry, and subsequently to Services.
- Statement 3 is Correct: The development trajectories of India and Pakistan deviated from the classical model. In both countries, the industrial sector failed to grow fast enough to absorb the surplus labor from agriculture. Instead, the service sector emerged as the primary engine of growth and employment absorption. Thus, the structural shift in workforce occurred largely from Agriculture directly to Services, bypassing the intensive industrialization phase observed in China.
Key Takeaway: While China adhered to the classical development path (Agriculture → Industry → Services), India and Pakistan exhibited a service-led growth pattern where the workforce shifted directly from Agriculture to Services.