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Exercises · Q8

Q.Which sector contributes the largest share to Telangana's Gross State Domestic Product? Explain the sectoral structure of the state's economy.

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Meaning of GSDP: Gross State Domestic Product (GSDP) is the total value of goods and services produced within the state in a year. Its sectoral composition shows the structure of the economy.

Sectoral structure of Telangana (approximate, 2023–24 estimates):

SectorIncludesApprox. share
Tertiary (Services)IT/ITeS, trade, transport, finance, real estate, public servicesLargest — about two-thirds (~65%)
Secondary (Industry)Manufacturing, construction, mining, powerAbout one-sixth to one-fifth (~18–19%)
Primary (Agriculture & allied)Crops, livestock, forestry, fishingAbout one-sixth (~16%)

(Shares are approximate and vary from year to year; shown for 2023–24 to illustrate structure.)

Key points:

  1. Services dominate, driven by Hyderabad's IT and business-services strength — hence Telangana is a service-led economy.
  2. Industry is the second-largest, supported by pharma, cement, textiles and construction.
  3. Agriculture contributes the smallest output share, yet employs the largest share of the workforce — pointing to low agricultural productivity. …

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