Which of the following statements is correct about the composition of the agriculture sector and employment in GDP post-independence?
- AOption (a)
The proportion of employment has declined significantly but not the share of the agriculture sector in GDP.
- BOption (b)
The proportion of both the agriculture sector and employment in GDP has increased significantly.
- COption (c)
The proportion of both the agriculture sector and employment in GDP has declined significantly.
- DOption (d)
The proportion of GDP contributed by the agricultural sector declined significantly but not the employment depending on the agriculture sector.
View answer & explanationHide answer & explanation
Correct answer
The proportion of GDP contributed by the agricultural sector declined significantly but not the employment depending on the agriculture sector.
Why this answer is correct
The correct answer is The proportion of GDP contributed by the agricultural sector declined significantly but not the employment depending on the agriculture sector..
Key Points
- Post-independence, the share of agriculture in India's GDP has seen a significant decline. This is due to the growth of the industrial and service sectors.
- Despite the decline in the GDP contribution, a large proportion of the Indian workforce is still dependent on agriculture for their livelihood.
- Structural transformation in the economy is observed where the labor force shifts from agriculture to other sectors, but this transition has been slow in India.
- Employment in agriculture remains high due to slow industrialization and the inability of other sectors to absorb the growing workforce.
Additional Information
- Gross Domestic Product (GDP):
- GDP is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
- It serves as a comprehensive scorecard of a given country’s economic health.
- Agriculture Sector:
- This sector includes farming, fishing, and forestry, and it is a primary sector of the economy.
- It provides food, raw materials, and employment to a large section of the population.
- Employment in Agriculture:
- A large proportion of the workforce in developing countries like India is employed in agriculture.
- It includes jobs in crop production, animal husbandry, fisheries, and forestry.
- Structural Transformation:
- This refers to the shift of economic activities and labor force from agriculture to the industrial and service sectors.
- It is a key feature of economic development and involves changes in the structure of the economy.