Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following is considered one of the most important failures of economic policies followed by India during 1950-1990?

Options:

decline in the proportion of GDP contributed by agriculture

failure of the industrial sector and the service sector to absorb the people working in the agricultural sector.

both 1 and 2

none of the above

Correct Answer:

failure of the industrial sector and the service sector to absorb the people working in the agricultural sector.

Explanation:

According to economists, a nation becomes more prosperous, the proportion of GDP contributed by agriculture as well as the proportion of population working in the sector declines considerably. In India, between 1950 and 1990, the proportion of GDP contributed by agriculture declined significantly but not the population depending on it (67.5 per cent in 1950 to 64.9 per cent by 1990). It is because the industrial sector and the service sector did not absorb the people working in the agricultural sector. Many economists call this an important failure of our policies followed during 1950-1990.