📈 Economy of Bihar Chapter 3: Bihar Economy: an overview

Mod 5: 5.1.3 Contribution of Different Sectors in GSVA

📖 Chapter 3 of 10 🧩 Module 5 of 12 ⏱️ ~5 min read 💡 10 MCQs
Topic Part 1 of 2
Gross State Value Added (GSVA) measures the total economic output of goods and services across all sectors, deducting the cost of intermediate inputs. As an economy expands, its structural composition shifts because rising consumer purchasing power redirects demand away from subsistence agriculture toward manufactured products and tertiary services.

1. Sectoral Composition of GSVA (Constant 2011-12 Prices)


Economic Sector2013-14 Share (%)2019-20 Share (%)2022-24 Updated Share (%)Long-Term Trend Direction
Primary Sector23.4%19.5%~19.8%Steady Structural Contraction (Down from ~25% in early 2000s)
Secondary Sector19.3%20.3%~19.7%Range-Bound Stagnation (Driven by construction, not factories)
Tertiary Sector57.3%60.2%~60.5%Dominant Expansion (Primary engine of economic output)
Total GSVA100.0%100.0%100.0%Sustained Real Growth (>10%)

2. Sectoral Evolution & Distribution (Constant Prices)




Baseline Year (2013-14)


23.4%

19.3%

Tertiary: 57.3%





Benchmark Year (2019-20)


19.5%

20.3%

Tertiary: 60.2%





Recent Profile (2022-24 Updated)


19.8%

19.7%

Tertiary: 60.5%





■ Primary (~19.8%)
■ Secondary (~19.7%)
■ Tertiary (~60.5%)



3. Detailed Sector Breakdown & Growth Drivers




🌾 Primary Sector (~19.8%)


• Contribution dropped from 23.4% (2013-14) to 19.5% (2019-20).

• Crop Vulnerability: Weather shocks (floods in North Bihar, droughts in South Bihar) cause crop volatility.

• Allied Resilience: High growth in livestock (dairy/poultry) and inland fisheries (>6-9%) cushions crop losses.





🏗️ Secondary Sector (~19.7%)


• Hovered range-bound from 19.3% (2013-14) to 20.3% (2019-20).

• Construction Engine: Growth is primarily powered by public infrastructure (roads, bridges) and utilities.

• Manufacturing Deficit: Factory manufacturing accounts for only 8-9% of GSVA due to limited large industrial plants.





📈 Tertiary Sector (~60.5%)


• Expanded from 57.3% (2013-14) to 60.2% (2019-20), exceeding 60.5% today.

• Growth Drivers: Highway freight, telecommunications, financial services, and retail commerce lead expansion.

• Administrative Outlay: Sustained public expenditure on welfare delivery constitutes a core sub-sector pillar.





4. The Structural Paradox: Fisher-Clark Model Deviation


Under standard developmental economics (the Fisher-Clark model), economies progress sequentially from agriculture to industrial factories, and lastly to services. Bihar has followed a distinctive trajectory by transitioning directly to a service economy:



Traditional Economic Path (Fisher-Clark Model)


Primary (Agriculture)
➔
Secondary (Factory Manufacturing)
➔
Tertiary (Services)




Bihar's Actual Structural Leap


Primary Sector (Declining to ~19.8%)
── [Bypassed Industrial Manufacturing] ──➔
Tertiary Sector (Dominant at >60.5%)




Workforce Mismatch: Over 60% of output is created by services concentrated in urban centers, while >85% of Bihar's population is rural and >50% of the workforce remains in agriculture. Because services generate high income with fewer direct laborers than factories, surplus agricultural labor remains trapped in low-productivity rural work.



5. High-Yield Facts for Exam Revision

* Primary Contraction: Primary sector contribution fell by 3.9 percentage points between 2013-14 and 2019-20 (from 23.4% down to 19.5%).
  • Tertiary Expansion: Tertiary sector expanded by 2.9 percentage points over the same period (from 57.3% up to 60.2%), surpassing 60.5% in recent accounts.

  • Leading Contributor: The tertiary sector accounts for more than three-fifths of Bihar's entire economic output.

  • Secondary Share: The secondary sector has remained near 20%, driven by public works and civil construction rather than manufacturing.
⭐ Key Points
  • Tertiary Expansion: Tertiary sector expanded by 2.9 percentage points over the same period (from 57.3% up to 60.2%), surpassing 60.5% in recent accounts.
  • Leading Contributor: The tertiary sector accounts for more than three-fifths of Bihar's entire economic output.
  • Secondary Share: The secondary sector has remained near 20%, driven by public works and civil construction rather than manufacturing.
📌 One-line Q&A
  • Tertiary Expansion: Tertiary sector expanded by 2.9 percentage points over the same period (from 57.3% up to 60.2%), surpassing 60.5% in recent accounts.
  • Leading Contributor: The tertiary sector accounts for more than three-fifths of Bihar's entire economic output.
  • Secondary Share: The secondary sector has remained near 20%, driven by public works and civil construction rather than manufacturing.
Questions 10 MCQs

Answer this question, then use Next.

Question 1: What causes the structure of any economy to change?

Correct Option: (B) Economic growth

Question 2: Why does the pattern of demand change with an increase in income?

Correct Option: (B) It changes from primary sector products to secondary sector products and services from the tertiary sectors

Question 3: According to Figure 5.1.1, what was the percentage share of the Tertiary sector in Bihar's economy in 2019-20?

Correct Option: (C) 60.2%

Question 4: According to Figure 5.1.1, what was the percentage share of the Primary sector in Bihar's economy in 2019-20?

Correct Option: (C) 19.3%

Question 5: According to Figure 5.1.1, what was the percentage share of the Secondary sector in Bihar's economy in 2019-20?

Correct Option: (B) 20.3%

Question 6: According to Table 5.1.4, what was the contribution of the Primary sector in 2013-14?

Correct Option: (B) 23.4%

Question 7: According to Table 5.1.4, what happened to the contribution of the Primary sector from 2013-14 to 2019-20?

Correct Option: (C) It reduced from 23.4% to 19.5%

Question 8: According to Table 5.1.4, what was the contribution of the Secondary sector in 2013-14?

Correct Option: (A) 19.3%

Question 9: According to Table 5.1.4, what happened to the Secondary sector's contribution between 2013-14 and 2019-20?

Correct Option: (B) It increased from 19.3% to 20.3%

Question 10: According to Table 5.1.4, what happened to the contribution of the Tertiary sector from 2013-14 to 2019-20?

Correct Option: (A) It increased from 57.3% to 60.2%
Question 1 of 10

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Tertiary Expansion: Tertiary sector expanded by 2.9 percentage points over the same period (from 57.3% up to 60.2%), surpassing 60.5% in recent accounts.

Tertiary sector expanded by 2.9 percentage points over the same period (from 57.3% up to 60.2%), surpassing 60.5% in recent accounts.

Leading Contributor: The tertiary sector accounts for more than three-fifths of Bihar's entire economic output.

The tertiary sector accounts for more than three-fifths of Bihar's entire economic output.

Secondary Share: The secondary sector has remained near 20%, driven by public works and civil construction rather than manufacturing.

The secondary sector has remained near 20%, driven by public works and civil construction rather than manufacturing.