Which of the following sectors contribute the most to GDP in India?

Correct option is A

The correct answer is (a) Tertiary sector

Explanation:

·       The Tertiary sector, also known as the services sector, contributes the largest share to India’s Gross Domestic Product (GDP).

·       As per FY 2024–25 estimates by the Ministry of Statistics and Programme Implementation (MoSPI), the services sector contributed approximately 55% of India’s nominal GDP.

·       It includes activities like banking, finance, education, healthcare, tourism, and information technology.

·       India has witnessed a structural economic shift from agrarian (primary) to industrial (secondary) and now service-led (tertiary) growth.

Information Booster:

·       The services sector is not only the largest contributor to GDP but also a major driver of foreign exchange earnings and urban employment.

·       Rapid digitalization and growth in IT services have boosted the sector’s performance.

Additional Knowledge:

Secondary sector (Option b)

. Includes industries and manufacturing

. Contributes around 25–30% of India’s GDP

. Has grown with initiatives like "Make in India" but still lags behind services

Primary sector (Option c)

. Includes agriculture, forestry, fishing

. Contributes only about 16–17% of GDP

. Despite employing nearly half the workforce, its share in GDP is declining

Unorganised sector (Option d)

. Refers to a classification based on employment (not economic activity)

. Includes informal employment across all three sectors

. Cannot be compared directly with primary, secondary, and tertiary sectors in GDP terms