Which one of the following sector provides highest employment in Indian economy?

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RPSC 2nd Grade Social Science (Held on 2nd July 2017) Official Paper
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  1. Industry sector
  2. Services sector
  3. Agriculture and allied activites
  4. Foreign sector

Answer (Detailed Solution Below)

Option 3 : Agriculture and allied activites
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Detailed Solution

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Agriculture and allied activities provide the highest employment in the Indian economy.

Important Points

  • In India, Agriculture employs 50%-60% of the population.
  • Agriculture is included in the primary sector.
  • It creates employment for most of the Indian population because despite employing the majority of the workforce, the agricultural region's extremely low GDP contribution is caused by its low productivity. As a result, even a large group of workers is unable to achieve an extremely high level of farm output that would add to GDP.

Additional Information

  • The eight-core sectors of the Indian economy are:
    • Electricity
    • Steel
    • Refinery products
    • Crude oil
    • Coal
    • Cement
    • Natural gas
    • Fertilizers
  • All the workers in these divisions can be grouped into three major sectors for the sake of simplicity:
    • the primary sector, which includes divisions (1) and (2) 
    • the secondary sector, which includes divisions (3), (4), and (5); and
    • the service sector, which includes divisions (6), (7), and (8).
  • Only 24% of the workers are employed in the secondary industry.
  • About 31% of workers work in the service industry.
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