Which among the following contributes maximum to the GDP?

Correct option is C

The Service sector contributes the maximum to India’s GDP. Over the years, India’s economic structure has shifted from being agriculture-dominated to service-dominated. The service sector includes industries such as IT, telecommunications, finance, insurance, real estate, trade, hotels, transport, and public administration.
Currently, the sector contributes more than 50% to India’s total GDP, making it the largest contributor. This shift is attributed to globalization, technological advancements, urbanization, higher demand for skilled services, and rapid growth in IT-enabled services.
Thus, the correct answer is (c) Service sector.
Information Booster
1. The service sector is a major driver of employment in urban areas.
2. IT and IT-enabled services account for a significant share of service-sector exports.
3. India’s service industry is globally competitive in sectors like software, BPO, and financial services.
4. Growth in the service sector helps increase foreign exchange earnings.
5. The sector also supports other sectors by providing essential services (banking, logistics, communication).
Additional Information
· (a) Primary sector: Includes agriculture and allied activities. Although it employs a large portion of the population, its GDP contribution is significantly lower than the service sector.
· (b) Secondary sector: Includes manufacturing and industrial activities. Its contribution is moderate and has grown, but still remains below the service sector.
· (d) Food processing: This is a part of the secondary sector, not a separate sector. Its contribution to GDP is smaller compared to broader sectors.