Question

In 1951, agricultural contribution to India's national income was:

• A. Highest among the three sectors
• B. Lowest among the three sectors
• C. Lower than the industrial sector
• D. Lower than the service sector

Hint:

India in the early 1950s was an agriculture-dominated economy. Industrial and service sectors became stronger gradually after planned economic development and industrialization.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
At the dawn of independence, the Indian economy was structurally underdeveloped and primarily agrarian.
The sectoral contribution to the national income (GDP) reflects the economic stage of a country.
A developing or underdeveloped country usually has a massive share of the primary sector (agriculture), while developed nations have larger shares in the secondary (industry) and tertiary (services) sectors.
Step 2: Detailed Explanation:
In the year 1950-51:
1. Primary Sector (Agriculture): Contributed nearly 55% to 59% of India's GDP. This shows the absolute dominance of agriculture in the national income.
2. Secondary Sector (Industry): Was very small, contributing only about 13% to 15%. Industrialization under the British was lopsided and limited to a few sectors like textiles and jute.
3. Tertiary Sector (Services): Contributed the remaining share (around 27% to 30%).
Not only was the income contribution highest from agriculture, but the workforce dependence was even higher, with about 72% of the total population engaged in farming.
This high dependency on a single, low-productivity sector is a classic sign of economic backwardness.
Over the subsequent decades, through the Five Year Plans, the share of agriculture in GDP has steadily declined (currently around 15-18%), while the services sector has become the largest contributor.
However, in 1951, agriculture was the undisputed leader in terms of contribution to the national income.
Step 3: Final Answer:
In 1951, the agricultural sector's contribution to national income was the highest among all three sectors of the economy.