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Exercises · Q9
Q.

Study the following (approximate, 2023–24) sectoral shares of Telangana's economy and answer the questions below.

SectorApprox. share of state value added (2023–24)
Services (Tertiary)~65%
Industry (Secondary)~18–19%
Agriculture & allied (Primary)~16%

(a) Which sector has the largest share? (b) What does the large services share tell us about the state economy? (c) If agriculture employs nearly half the workforce but contributes only ~16% of output, what does this indicate?

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Interpreting the data:

  1. Sector with the largest share: The services (tertiary) sector, at about 65% of state value added in 2023–24, has by far the largest share.
  2. What the large services share tells us: It shows that Telangana is a service-led economy. Its growth is powered mainly by IT/ITeS, finance, trade, transport, real estate and public services — concentrated especially in Hyderabad. Such a structure supports fast growth and high-skill jobs but can concentrate activity in the capital region.
  3. High employment but low output share in agriculture: If agriculture employs nearly half the workforce yet produces only about 16% of output, output per worker in agriculture is far lower than in services or industry. This indicates low agricultural productivity — a structural weakness. It means many workers earn relatively little from farming, which is why raising farm productivity (through irrigation, better inputs and diversification) and creating non-farm jobs are important policy priorities. …

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