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Q.

Underemployment is mainly observed in the ____ sector.


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Detailed Solution

Underemployment is mainly observed in the primary sector. The majority of the workforce of India is involved in the agricultural activities of the primary sector. However, more workers are employed than needed. In other words, the labour force is not contributing to the national income as the labour effort is divided. It is why despite the high proportion of the workforce in this sector, the primary sector contributes the least to the GDP.
 
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