Analysis of Trends in Composition of National Income

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  • 7/26/2019 Analysis of Trends in Composition of National Income

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    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

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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