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Question

The share of the tertiary sector to the GDP has increased but the contribution of which sector to employment is the highest at present?

The correct answer is

Primary

Sector Employment vs. GDP Contribution

The question asks which sector currently provides the most employment, even though the tertiary (service) sector's share of the Gross Domestic Product (GDP) is increasing.

Understanding GDP and Employment

GDP measures the total value of goods and services produced in a country. The tertiary sector (like IT, finance, tourism) often contributes the most to GDP in developed and developing economies due to higher value addition per worker.

However, employment refers to the number of people working in a sector. In many economies, especially those still developing, the primary sector (agriculture, fishing, mining) employs a large portion of the workforce, even if its GDP contribution is lower or declining relative to the tertiary sector.

Identifying the Highest Employment Sector

  • Tertiary Sector: Growing GDP share, but employment growth might not match its GDP increase.
  • Secondary Sector (Industry/Manufacturing): Important for GDP and employment, but often surpassed by the primary sector in total employment numbers in many regions.
  • Information Technology: A specific part of the tertiary sector, employs significant numbers but not the largest overall.
  • Primary Sector: Includes agriculture, which is often the largest employer, providing jobs for a substantial part of the population, particularly in less industrialized nations.

Therefore, despite the tertiary sector's increasing GDP share, the primary sector typically remains the largest contributor to total employment.

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Important Questions from Industrial Sector

  1. FPI consists of securities and other financial assets passively held by foreign investors. What is the full form of FPI?

  2. Prior to the country’s independence, India was particularly known for its ____________ industries.

  3. Which of the following is in the list of Maharatna Central Public Sector Enterprises?

  4. What is power, the most visible form of energy, which is often identified with progress in modern civilization, commonly called?

  5. Atal Pension Yojana (APY), a pension scheme for citizens of India, is focused on the _____ sector workers.

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