Exercises · Q9
Q.Compare and contrast India and China's sectoral contribution towards GVA/GDP. What does it indicate?
Yanam CbseNCERTSubjective· 3mImportance★★★★★
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Start your 14-day free trial to unlock the full solution →China's growth is led by manufacturing (industry contributes the largest share to GDP), while India's is led by services. This shows India jumped from agriculture to services without a strong manufacturing stage, whereas China grew on a strong industrial base.
Sectoral contribution to GDP/GVA
Every economy's output comes from three sectors — the primary (agriculture and allied), the secondary (industry/manufacturing) and the tertiary (services) sectors. Comparing India and China:
| Sector | China | India |
|---|---|---|
| Primary (agriculture) | Still a notable share; large workforce historically | Contributes a small share to GDP but employs a large workforce |
| Secondary (manufacturing/industry) | Largest / leading contributor to GDP; the engine of growth | Contributes a smaller share; industry is comparatively weaker |
| Tertiary (services) | Growing, but secondary to industry | Largest contributor to GDP; the engine of growth |
Compare and contrast
- In China, the manufacturing sector contributes the highest to output and is the main source of growth. China has built its economy on a strong industrial and manufacturing foundation.
- In India, the service sector contributes the largest share to GDP and is the main source of growth. Industry contributes comparatively less.
- In both countries, the agricultural sector contributes a relatively small share to output, though it still supports a large part of the workforce.
What it indicates …
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