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7/26/2019 Analysis of Trends in Composition of National Income
1/4
AgricultureAgriculture in India is the major sector of its economy. Almost two-thirds of the total
work-force earns their livelihood though farming and other allied sectors like
forestry, logging and shing which account 18% of the !". #hese sectors $rovideem$loyment to &% of the country's total $o$ulation. A(out )*% of the country's
total geogra$hical area is used for agricultural $ur$oses. After inde$endence
additional areas were (rought under cultivation and new methods, $ractices and
techni+ues of irrigation and farming were introduced (y the government. #he
reen evolution and /$eration 0lood in the country have made India self-
sucient in $roducing food grains and milk. Among other things, the government
also tried to decrease the de$endence on monsoons. 2etter seeds, use of fertili3er,
education of farmers and $rovision of agricultural credit and su(sidies are reasons
for increase in agricultural $roductivity.
Agriculture in India is the res$onsi(ility of the states rather than the central
government. #he central government formulates $olicy and $rovides nancial
assistance to the states. 4tates like "unja(, 5aryana, 6ttar "radesh, Andhra
"radesh, #amil 7adu, arnataka and 9est 2engal are major $roducers of food grains
in India. 5imachal "radesh and :ammu and ashmir are famous for fruit $roduction.
#ea is $roduced in the high altitudes of Assam, !arjeeling in 9est 2engal, #ri$ura,
/oty in #amil 7adu, 5imachal "radesh and erala. erala is also the largest $roducer
of natural ru((er and s$ices in India. ajasthan is among the major $roducers of
edi(le oils in India and second largest $roducer of oil seeds. "roduction of non-
conventional items like moong ;a ty$e of lentil?.% of the !" and gives em$loyment to
1?% of the total workforce. #hough agriculture is the foremost occu$ation of the
majority of the $eo$le, the government had always laid stress on the industrial
7/26/2019 Analysis of Trends in Composition of National Income
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develo$ment of the country. #hus $olicies and strategies were framed to give a
(oost to India's industry. #he government aims at achieving self-suciency in
$roduction and $rotection from foreign com$etition. 4ince inde$endence, India is
marching ahead to (ecome a diverse industrial (ase.
#oday India holds some key industries in the sectors like steel, engineering andmachine tools, electronics, $etrochemicals, te@tiles and software. Im$ortance has
also (een given to im$rove the infrastructure of the country. #he government has
li(erali3ed its industrial $olicy there(y attracting huge foreign direct investment. If
on one hand several multinational com$anies o$ened their oces in India, on the
other hand many Indian com$anies started their o$erations in foreign countries.
Industry rowth ate in India !" has (een im$ressive in the last few years. #he
rowth ate of the Industry in the India !" has grown due to sustained
manufacturing activity over the years. #his has given a major (oost to the Indian
economy.
#he reasons for the increase of Industry rowth ate in India !" are that huge
amounts of investments are (eing made in this sector and this has hel$ed the
industries to grow. 0urther the reasons for the rise of the rowth ate of the
Industrial 4ector in India are that the consum$tion of the industrial goods has
increased a great deal in the country, which in its turn has (oosted the industrial
sector. Also the reasons for the increase of Industry rowth ate in India !" are
that the industrial goods are (eing e@$orted in huge +uantities from the country.
Industrial sector- PROBLEMSo 0ailure to achieve targets
o 6nder-utili3ation of ca$acity
o A(sence of $ro$er infrastructure
o Increasing ca$ital-out$ut ratio
o 5igh cost industrial economy
o Inade+uate em$loyment generation
o "oor $erformance of $u(lic sector
o 4ectoral im(alances
o egional im(alances
o Industrial sickness ;small scale and cottage industries&&C-1& and >&1&-11, automo(iles, ru((er and $lastics, fa(ricated metal
$roducts, machinery and e+ui$ment and radio, #D and communication e+ui$ment
segments had witnessed dou(le digit growth.
#he contri(ution of the 4ervices 4ector has increased very ra$idly in the India !"
for many foreign consumers have shown interest in the countrys service e@$orts.
#his is due to the fact that India has a large $ool of highly skilled, low cost, and
educated workers in the country. #his has made sure that the services that are
availa(le in the country are of the (est +uality. #he foreign com$anies seeing this
have started outsourcing their work to India es$ecially in the area of (usiness
services which includes (usiness $rocess outsourcing and information technology
services. #his has given a major (oost to the 4ervices 4ector in India, which in its
turn has made the sector contri(ute more to the India !".
Service sector PROBLEMS in generalo Inade+uate infrastructure facilities ; $ower shortage, im$ro$er skill
develo$ment