MasteryExams
Economics • Economic BasicsMedium

In analyzing the structural composition of Arunachal Pradesh's economy, which sector has shown the fastest growing contribution to the Gross State Domestic Product in recent years, driven by service expansion and administrative scaling?

A. Primary sector
B. Secondary sector
C. Tertiary sector✓ Correct Answer
D. Quaternary manufacturing sector

💡 Solution & Explanation

The tertiary sector encompassing public administration, trade, transport, and financial services has expanded rapidly to become a dominant contributor to Arunachal Pradesh's Gross State Domestic Product. This expansion is largely fueled by increased government expenditure, infrastructure development projects, and rising demand for consumer services in urban centers like Itanagar and Naharlagun. While agriculture remains the largest employer, the service sector generates higher relative value addition. Public administration expenditure forms a significant portion of this service-led growth.

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