India has been known as a primary producing country with agriculture being the main occupation of majority of its citizens. Since the advent of New Economic Policy in 1991, India has been witnessing marked shifts in the occupational structure from primary producing to tertiary sector. With more and people engaging in non- agricultural pursuits, especially those in the tertiary sector, there has been a steady growth in the services sector and decline in the number of people engaged in the primary sector. Several economists like Colin Clark and A. G. B. Fisher in their popular works have established a relationship between economic development and occupational structure. Clark had argued that a high average level of real income per head is always associated with a low proportion of the working population engaged in tertiary production and a high percentage in primary production. This paper seeks to analyze the extent to which this change in India’s occupational structure has contributed to economic growth and how far the conclusions of Clark and other economists have come true in India’s case by analyzing the impact of this shift in occupational structure on the macroeconomic variables of India like per capita income, distribution of working population and
GDP growth rates, etc., and its implications on the Indian Economy.