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Question

The 60.2 percent share in GSDP of Bihar in 2019 – 20 was of

This question was previously asked in
BPSC 70th 2024 Prelims General Studies Re-Exam Question Paper (04-Jan-2025)
The correct answer is

Service Sector

 The services sector accounted for that share — option 1.

The structure of Bihar’s economy. Services dominate its output, as they do India’s, and by a wider margin than in most states because Bihar has so little industry :

SectorApproximate share of Bihar’s GSDP
Services (tertiary)About 60 per cent
Agriculture and allied (primary)About one-fifth
Industry (secondary)About one-fifth, of which manufacturing is only a part

Why the answer can be reasoned out. A figure as large as 60 per cent can only belong to the broadest of the four categories. Agriculture in Bihar is under a quarter of output; industry, which includes manufacturing, construction, mining and utilities, is of similar size; and manufacturing alone — a sub-set of industry — must be smaller still, at under a tenth. Only services can be so large. Noticing that option 2 is contained within option 3, and that both are therefore smaller than the total they belong to, disposes of them together.

What the services are. Trade, hotels and restaurants; transport and communications; banking, insurance and real estate; and public administration. In Bihar the largest components are trade and transport, with public administration significant because the state government is a major employer. Note that much of this is low-productivity, informal service work rather than the high-value services of a Bengaluru or Hyderabad.

The imbalance behind the figure. Bihar’s industrial base was weakened by the separation of Jharkhand in 2000, which took away the mineral belt, the Tata works at Jamshedpur, and most of the state’s heavy industry. What remains is largely agro-processing and small units. The state has therefore moved from agriculture to services with only a thin manufacturing stage in between — and since manufacturing is the sector that absorbs the most labour, this is the central weakness of its employment record.

Hence, the answer is the Service Sector.

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Important Questions from Economy

  1. What was the Per Capita Net State Domestic Product at Current Prices for Bihar for the fiscal year 2022-23, based on the base year 2011-12 ?

  2. When did Bihar State introduce the Green Budget for the first time ?

  3. Match List – I with List – II :

    List – IList – II  
    a. Vaishali1. Silk Textile
    b. Bhagalpur2. Gold
    c. Jamui3. Rail coach factory
    d. Madhepura4. Flori culture

    Select the correct answer using the codes given below.

  4. In which of the following years the Bihar state Hydroelectric power corporation was established ?

  5. What is the contribution of agriculture in the Gross Domestic Product (GDP) of Bihar ?

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