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.