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.:: Structure of the Indian Economy ::.

  1. Describe the occupational structure of the Indian economy.
    I. Introduction: Indian economy consists of three important aspects. They are agricultural, Industry and services. The working population derives their income by joining various occupations.
    II. Occupational structure meaning: People earn their incomes by doing different kinds of jobs for their livelihood population among different is known as occupational structure. 
    III. Occupational structure- Its types : The occupations are of three types. They are :
    1. Primary sector
    2. Secondary sector
    3. Tertiary sector.

    1. Primary sector: Primary occupations include agriculture , fishing, plantations mining and allied activities. Food grains and raw materials are produced in the primary sector.
    Over the last eight decades, the working population in agriculture had not fallen below 63% where as it is only 3 to 6 % in advanced capitalist countries like USA, UK and Japan.

    2. Secondary sector: Secondary occupations include manufacturing operations in industries both large and small and construction activity. The working population in the secondary and Tertiary has marginally increased to 37 % during the same period. But it is around 90 to 97 % in the advanced countries.

    3. Tertiary sector: This sector generated occupations in such services like banking, commence, communications, computers, and other professions.

    IV Conclusion: Hence, we can say that, the occupational structure of India shows the backwardness of the Indian economy.
  2. Explain the relationship between farm size and productivity.
    Some of the economists have an opinion that small farms are more productive than the large farms.
    Based on their opinion the productivity per acre in small farms is greater than the large farms. It is known as, inverse relationship between farm size and productivity.
    But other economists argue that large farms are capable of maximizing profitability on account of equating marginal productivity.
  3. What is the role of public sector in Indian industrialization?
    Introduction: Indian industry consists of public sector, private sector and foreign sector.
    Public sector – meaning: In public sector, industries are under and managed by the government .
    Particularly large scale sector industries are under government control in public sector.
    Role of public sector:
    1. The government realized that it is necessary to active speedy industrialization by giving priority to the public sector.
    2. The second five year plan (1956 – 61) gave priority to heavy industries so that large investments throng public sector.
    3. However, due to persistent lapses in many public sector enterprises the availability of public sector is becoming difficult.
    4. So the government has decided to dilute the public sector by selling valuable properties of public sector to the private sector.
    5. Moreover, the maintenance of huge assets in public sector is uneconomical.
    6. These trends are witnessed after the new industrial policy in 1991.
    7. This privatization process is mostly witnessed in transport communications banking etc.
    8. However public sector is still relevant to remove.
  4. Explain the significance of service sector in Indian economy.
    I. Introduction: service sector is one of the crucial indicators the direction of modernization and creates employment generation.
    II. Service sector – Meaning: Transport and communications financial institution, banking and insurance and public administration are included in the service sector. It is one of the crucial sectors along with agriculture and industry.

    III. Significance of service sector:
    1. Service sector plays a crucial role in building the strength of the economy along with primary and secondary sectors.
    2. Transport and communications, financial institutions, banking etc are included in this sector.
    3. Transport sector is essential for progress prosperity and modernization of the country.
    4. Without adequate means of communications and transport there can be no development.
    5. Particularly communication system provides in formation on new products and markets to bring a better interaction between the buyers and sellers.
    6. Internal and international exchange of goods and services is made easier with the help of communication sector.
    7. The financial and banking institution mobilize savings from the public and transfer them to needs organizations.
    8. Thus, service sector plays an important role in the rapid progress of the economy.
  5. What is the role of banking and financial institutions in India? Will privatization help in realizing the objectives?
    I. Introduction: Service sector is one of the crucial sectors along with agriculture and industry part of service sector.
    Role of banking and financial institutions:
    i. Banking and financial institutions are the important services in service sector.
    ii. Financial system refers to the system of barrowing and lending of funds by individuals firms, institutions and government .
    iii. The main objective of banking system is to mobilize savings from the public and transfer them to the needy organizations for productive purposes.
    iv. They contribute to the growth of national income.
    v. Government purposes to dilute its participation in financial and banking systems and give priority for private institutions to provide better and effective services to the people
    vi. There are public, private and foreign sectors banks in India.
    vii. But all these banks must fulfill their requirements under the control of Reserve Bank of India, which is the monetary authority in the country.
    viii. Hence privatization will help in realizing the objective of banking and financial institutions in India.
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