With reference to the sectoral composition of the Indian economy between 1950 and 1990, consider the following statements: 1. The share of agriculture in the GDP declined significantly. 2. The proportion of the population dependent on agriculture declined at the same rate as agriculture's share in GDP. 3. The service sector contributed more to GDP than agriculture or industry by 1990. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation Structural composition refers to the contribution of different sectors-agriculture, industry, and services-to the Gross Domestic Product (GDP) and employment. In a developing economy, a transition typically occurs where the share of agriculture declines while the shares of industry and services rise in both output and employment. Statement-wise Analysis - Statement 1 is Correct: Between 1950 and 1990, the share of agriculture in India's GDP declined significantly. In 1950-51, agriculture contributed more than 50% to the GDP, but by 1990, this share had fallen to approximately 30-35%. - Statement 2 is Incorrect: The proportion of the population dependent on agriculture did not decline at the same rate as agriculture's share in GDP. While the GDP contribution of agriculture fell sharply, the workforce engaged in the sector remained disproportionately high (dropping marginally from roughly 67.5% in 1950 to about 64.9% in 1990). This phenomenon indicates that the industrial and service sectors failed to generate sufficient employment to absorb the surplus labor from agriculture. - Statement 3 is Correct: By 1990-91, the service sector (tertiary sector) had overtaken agriculture to become the largest contributor to the GDP, accounting for over 40% of the total output, surpassing both agriculture and industry. Key Takeaway Key Takeaway: The period 1950-1990 in the Indian economy was characterized by a structural mismatch: while the output composition shifted from agriculture to services, the occupational structure remained stagnant, with the majority of the workforce remaining trapped in the agricultural sector.

With reference to the sectoral… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 2: Indian Economy (1950-1990)

mcqhard

With reference to the sectoral composition of the Indian economy between 1950 and 1990, consider the following statements:

The share of agriculture in the GDP declined significantly.
The proportion of the population dependent on agriculture declined at the same rate as agriculture's share in GDP.
The service sector contributed more to GDP than agriculture or industry by 1990.

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 27

Options

A1 and 2 only
B1, 2 and 3
C2 only
D1 and 3 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

Structural composition refers to the contribution of different sectors-agriculture, industry, and services-to the Gross Domestic Product (GDP) and employment. In a developing economy, a transition typically occurs where the share of agriculture declines while the shares of industry and services rise in both output and employment.

Statement-wise Analysis

Statement 1 is Correct: Between 1950 and 1990, the share of agriculture in India's GDP declined significantly. In 1950-51, agriculture contributed more than 50% to the GDP, but by 1990, this share had fallen to approximately 30-35%.
Statement 2 is Incorrect: The proportion of the population dependent on agriculture did not decline at the same rate as agriculture's share in GDP. While the GDP contribution of agriculture fell sharply, the workforce engaged in the sector remained disproportionately high (dropping marginally from roughly 67.5% in 1950 to about 64.9% in 1990). This phenomenon indicates that the industrial and service sectors failed to generate sufficient employment to absorb the surplus labor from agriculture.
Statement 3 is Correct: By 1990-91, the service sector (tertiary sector) had overtaken agriculture to become the largest contributor to the GDP, accounting for over 40% of the total output, surpassing both agriculture and industry.

Key Takeaway

Key Takeaway: The period 1950-1990 in the Indian economy was characterized by a structural mismatch: while the output composition shifted from agriculture to services, the occupational structure remained stagnant, with the majority of the workforce remaining trapped in the agricultural sector.

Your note

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