Explain how the shift of employment from the primary sector to the tertiary sector has influenced India's economic development. In your answer, discuss at least three effects, providing relevant examples.
Answer
The shift has (i) increased per‑capita income because services pay higher wages, (ii) accelerated urbanisation as workers move to cities for jobs in banking, IT and retail, and (iii) diversified export earnings, with services like IT and business process outsourcing contributing significantly to foreign exchange earnings, thereby reducing dependence on agriculture.
Step-by-step solution
- State the observed movement of labour from agriculture (primary) to services (tertiary).
- Explain that service jobs typically offer higher wages, leading to higher per‑capita income; cite examples such as IT and banking.
- Describe how the need for service‑sector jobs promotes migration to urban areas, causing faster urbanisation; give examples like metro cities hosting IT parks.
- Show that services have become major export earners, especially IT and BPO, reducing reliance on agricultural exports.
- Summarise the three effects and link them to overall economic development.
Common mistake: Listing only one effect or failing to provide concrete examples
Concept tested: Impact of sectoral shift on development
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