[short_answer] What does Gross Domestic Product (GDP) measure? Explain the role of the three sectors of the Indian economy in arriving at the GDP figure.
Generated by claude-sonnet-4-6 · 2026-06-26 13:22 · grounding rag
Model Answer
GDP (Gross Domestic Product) is the value of all final goods and services produced within a country during a particular year. It shows how big the economy is.
Role of the Three Sectors in arriving at GDP:
- The primary sector (agriculture, mining, fishing) produces natural goods. Its value is calculated and added.
- The secondary sector (manufacturing, industry) processes natural goods into finished products. Its value is added next.
- The tertiary sector (services like transport, banking, trade) provides supporting services. Its value is also added.
The sum of the value of final goods and services produced by all three sectors gives the GDP of the country. In India, this task is carried out by a central government ministry.
Source: Chapter 2 – Sectors of the Indian Economy, 'Comparing the Three Sectors'
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Explanation
- The key definition line (final goods and services, not intermediate) is worth 1 mark — examiners specifically test this distinction.
- For the remaining 2 marks, you must mention all three sectors with a brief example and state that their combined output = GDP.
- Avoid writing about GVA vs GDP differences — that is beyond Class 10 scope.
- The phrase "final goods and services" is critical; writing "all goods and services" would be marked incorrect per the MCQ in the textbook exercises (Q2c).