Sectoral Contribution to India's GDP — an important topic for competitive exam
📊 1. Sectoral Classification of the Economy
| Sector | Includes | Also Called |
|---|---|---|
| Primary | Agriculture, Fishing, Forestry, Mining | Agriculture sector |
| Secondary | Manufacturing, Construction, Electricity | Industrial sector |
| Tertiary | Services – Banking, IT, Trade, Education, Transport | Service sector |
📈 Latest Sectoral Contribution to GDP (FY 2023–24)
(Source: Economic Survey 2024 & CSO estimates)
| Sector | Share in GDP (%) |
|---|---|
| Primary | ~15% |
| Secondary | ~27% |
| Tertiary | ~58% |
✅ Tertiary sector is the largest contributor to India's GDP.
📅 Trend Over Time (1950 → Now)
| Year | Primary | Secondary | Tertiary |
|---|---|---|---|
| 1950–51 | 52% | 15% | 33% |
| 1990–91 | 31% | 27% | 42% |
| 2023–24 | 15% | 27% | 58% |
📌 Observation:
Decline in primary sector share.
Rise in services sector due to IT boom, urbanization, and globalization.
🧠 Key Points for Exams
Services sector is the engine of growth in India.
Agriculture still employs the highest % of population (~45–50%), but contributes the least to GDP (~15%) → reflects low productivity.
Manufacturing is targeted for expansion via Make in India & PLI Scheme.
Government aims for balanced growth of all sectors.