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Kerala PSC Indian Economy Book Study Materials Page 197Book's First Page
ri lt re and ood ana ement 8.3 private sector too. It is the only profession IntroductIon which still carries no burden of individual Agriculture remains the most important sector income tax. of the Indian economy, whether it be the pre- (iv) This is the biggest unorganised sector of independence or the post-independence periods. the economy accounting for more than This fact is emphatically proved by the large 90 per cent share in the total unorganised number of people who depend on it for their labour-force (93.4 per cent of the total livelihood. Before starting any discussion on labour force of the economy, i.e., 39.8 Indian agriculture, we must look into its special crores is employed in the unorganised features: sector).3 (i) From the monetary point of view the (v) India has emerged as a significant agri- share of the agriculture sector in the exporter in few crops, namely—cotton, economy remains at 17.4 per cent of the rice, meat, oil meals, spice, guar gum GDP.1 In the fiscal 1950–51 agriculture meal and sugar. As per4 the WTO’s Trade accounted for 55.4 per cent of the GDP. Statistics, the share of India’s agricultural (ii) The share of agriculture has been falling exports and imports in the world trade in the country’s gross income, while in 2016 were 2.40 per cent and 1.40 per industrial and services sectors’ shares cent, respectively. Agricultural exports have been on a rise constantly. But from as a percentage of agricultural GDP the livelihood point of view still 49 per increased from 7.95 per cent in 2009–10 cent of the people of India depend on the to 12.5 per cent in 2016–17. During agriculture2 sector. This makes it a more the same period, agricultural imports as important sector than the industry and a percentage of agricultural GDP also the services (for Nepal and Tanzania the increased from 4.90 per cent to 6.1 per dependency for livelihood on agriculture cent. is still higher at 93 per cent and 81 per (vi) According to the export figures, agriculture cent, respectively). It means that 49 per is deeply related to industrial growth and cent of the population lives with only the national income in India—1 per cent 17.4 per cent of the total income of increase in the agricultural growth leads the Indian economy—this fact clearly to 0.5 per cent increase in industrial substantiates the reason why the people output (growth) and 0.7 per cent increase who depend on agriculture are poor. in the national income of India.5 In the developed economies such as the USA, France, Norway, the UK and (vii) The industrial sector was selected as the Japan, agriculture contributes only 2 per ‘prime moving force’ of the economy in cent of their GDP with only 2 per cent of 3. Labour Bureau, Ministry of Labour and Employment, the people dependent on this sector for Government of India, N. Delhi, February 2018. their livelihood. 4. Trade Statistics, WTO, Geneva, Switzerland, February 2018. (iii) Agriculture is not only the biggest sector 5. This corelation has been pointed out by many great of the economy, but also the biggest economists in India since 1960s, for example, by Raj Krishna (1976), S. Chakravarty (1974–79) and 1. Ministry of Agriculture, GoI, N. Delhi, February 2018. C. Rangarajan (1982) to quote some of the most 2. Ministry of Finance, GoI, N. Delhi, February 2017. important names.