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Which of the following sectors had the largest percentage of workforce in urban India in the year 2019-2020?
Question

Which of the following sectors had the largest percentage of workforce in urban India in the year 2019-2020?

A.

Agriculture

B.

Industry

C.

Service

D.

Mining

Correct option is C

The correct answer is (C) Service.

Explanation:

In 2019-2020, the Service sector had the largest percentage of the urban workforce in India. According to data from the Periodic Labour Force Survey (PLFS) 2019-20, the employment distribution in urban areas was:

  • Service Sector: Around 60% of the workforce
  • Industry Sector: Approximately 34%
  • Agriculture Sector: Less than 6%

The Service sector, which includes IT, banking, finance, education, healthcare, retail, trade, transport, and communication, has been the dominant employment generator in urban India. The rise of IT hubs, BPOs, financial services, and e-commerce has contributed significantly to urban employment.

Information Booster:

  • Service sector includes:

    • IT & Software Industry (Bangalore, Hyderabad, Pune)
    • Banking & Financial Services (BFSI)
    • Education & Healthcare
    • Real Estate & Hospitality
    • Retail, Trade & E-commerce
  • Reasons for dominance of the Service sector in urban employment:

    • Rapid urbanization and expansion of metro cities.
    • Growth of corporate offices and financial institutions.
    • Increase in digital economy & IT-based services.
    • Rising demand for healthcare and education professionals.

Additional Knowledge:

(A) Agriculture

  • Agriculture employs a majority of India's workforce (around 42% in 2019-20) but is concentrated in rural areas.
  • Urban areas have very little agricultural employment due to industrialization and commercialization.

(B) Industry

  • Industry (Manufacturing & Construction) employs a significant workforce but is not the largest in urban areas.
  • Manufacturing hubs in cities like Mumbai, Chennai, and Noida contribute to urban employment, but not as much as the Service sector.

(D) Mining

  • Mining is a small-scale employment sector in India, mostly found in rural and tribal areas.
  • Urban employment in mining is negligible compared to other sectors.

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