What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.

Solution

The contributions made by agriculture sector, industrial sector and the service sector make up the structural composition of the economy. Yes, it is necessary that the service sector should contribute maximum to GDP of an economy.

In some of the economies the prime share of GDP comprises of agricultural sector but in other economies, it consists of service sector. When the economy grows, this proportion changes. However, in India's GDP, there is remarkable increase in the growth of service sector which is an important characteristics of a developed economy. India's GDP consisted of 50% share of agriculture, but this proportion reduced consideredly and the proportion of service sector increased to 40.59% by the end of 1990.

Some More Questions From Indian Economy 1950-1990 Chapter

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Indian Economy 1950-1990

What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.

Some More Questions From Indian Economy 1950-1990 Chapter

What is meant by economic growth?

What structural change undergoes with development of the economy?

Name the sectors from which the GDP of a country is derived.

On which idea is the policy of 'land to tiller' is based?

Where is the provision for economic and social planning in our Constitution?

Why is agriculture called the backbone of Indian Economy?

What is meant by agriculture?

What are the main causes of backwardness of Indian agriculture?

What do you mean by land reforms?

What is consolidation of holdings?

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