question_answer

For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Or

"Tertiary sector is not playing any significant role in the development of Indian economy." Do you agree? Give reasons in support of your answer.

 

Answer:

(a) Comparison in terms of GDP

In 1950-51, GDP at factor cost at constant 11993-94) prices was Rs. 140466crores and in 2003-2004 was Ks. 1424507crores.

In 2003-04, GDP growth rate was 8.2%

In 2003-04, in Primary sector, growth rate was 8.6%

In 2003-04, in Secondary sector, growth rate was 6.7%

In 2003-04, in Tertiary sector, growth rate was 8.4%

The main driving force behind high growth rate in GDP is the extremely good performance of the tertiary sector in general and the organized service sector (Transport, Communications, Banking, Finance, etc.) in particular.

(b) Comparison in terms of Employment In 1951 - percentage of working force in India engaged in primary, secondary and tertiary sector was 72.1%, 10.7% and17.2%resepectively.

In 1999-2000, percentage of working force in India engaged in primary, secondary and tertiary sector was 60.4%, 16.8% and 22.7% respectively.

On comparing we find a change in the occupational distribution in all the three sectors. People are shifting from primary sector to secondary and tertiary sectors. This is an indication of progressing on the path of development.

Yes, these could be other issues which should be examined like health, education and protection of workers in the unorganised sector, etc.

No, I do not agree with this statement. Tertiary sector is playing significant role in the development of Indian economy.