1.

What is the sectoral constitution of any economy? Is it necessary that the service sector should contribute more than the others in the GDP of an economy? Explain.

Answer»

Sectoral Constitution of Economy :

Any economy is divided into 3 parts on the basis of sector :

  • Primary sector : This sector includes agriculture, animal husbandry, forestry, fisheries etc. 
  • Secondary sector : This sector includes manufacturing and industries. 
  • Tertiary sector : This sector includes banking, insurance, communication etc. services.

Agriculture has the biggest contribution in GDP in a developing economy, while it has the least contribution in a developed country. The contribution of tertiary i.e. the service sector is the highest in a developed economy. Expansion of banking, insurance, communication, etc. services in a country is an indicator of development. Therefore, the service sector should contribute the most in the GDP of an economy.


Discussion

No Comment Found

Related InterviewSolutions