RAS question
Which sector has the highest contribution to India's GDP currently?
Correct answer: (D) Services sector.
The services sector currently has the highest contribution to India's GDP, with PIB's Economic Survey 2025-26 release placing its share at 53.6% in H1 FY26.
Explanation
India's GDP is led by the services sector, not by agriculture, mining or manufacturing. Services account for about 54-55% of GDP, and the PIB Economic Survey 2025-26 release states that services' share in GDP rose to 53.6% in H1 FY26. That makes services the largest sectoral contributor. Industry is substantial but lower, at about 25-27%, and agriculture is still lower at about 15-17%. The important exam point is the contrast between output and employment: agriculture employs about 42% of the workforce despite a much smaller GDP share, which signals lower productivity relative to the services-led structure of output.
Why the other options are wrong
- (A) Agriculture and allied activities are important for livelihoods, but their GDP share is only about 15-17%, far below the services sector.
- (B) Mining and quarrying is a small part of GDP, contributing only about 2-3%, so it cannot be the highest-contributing sector.
- (C) Industry and manufacturing contribute about 25-27% of GDP, which is significant but still well below the services sector's share.
Concept
This tests the sectoral composition of India's GDP under Indian Economy. It recurs in RAS because aspirants must distinguish output share from employment share, especially the services-led GDP structure versus agriculture-heavy employment.