The correct option is It is a structural change where the service sector contributed more than agriculture or industry..
Explanation
Economic development is typically characterized by a structural transformation wherein the contribution of the primary sector (agriculture) to the Gross Domestic Product (GDP) declines, while the shares of the secondary (industry) and tertiary (services) sectors increase. In the Indian context, a distinct shift occurred by 1990-91, where the service sector emerged as the largest contributor to the economy.Option Analysis:
- The government prioritized service sector growth over agriculture in the First Plan. is Incorrect: The First Five-Year Plan (1951-56) explicitly prioritized the primary sector, focusing on agriculture, irrigation, and power, rather than the service sector. The focus on heavy industry began with the Second Five-Year Plan (Mahalanobis Model).
- It is a structural change where the service sector contributed more than agriculture or industry. is Correct: By the year 1990-91, the service sector's contribution to GDP had risen to approximately 40.59%, surpassing the agriculture sector (29.53%) and the industrial sector. This indicates a structural change in the economy where the tertiary sector began to dominate in terms of value addition, despite agriculture still employing the majority of the workforce.
- The industrial sector completely collapsed. is Incorrect: The industrial sector did not collapse. It continued to grow and contribute significantly to the GDP, although its growth rate and share were outpaced by the service sector during this period.
- Agriculture production became zero. is Incorrect: This statement is factually erroneous. Agriculture production remained positive and vital for food security and employment; only its relative percentage share in the total GDP declined due to the faster growth of other sectors.
Key Takeaway:
The increase in the service sector's share in India's GDP by 1990 signifies a structural change in the economy, marking the transition from an agrarian-dominated economy to a service-led growth model.