Question

functions of economics

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Answer 1

Answer:

India continues to be predominantly an agrarian and rural economy in terms of her population and work force even after more than five decades of independence. About 70 per cent of the Indian population still lives in rural areas and nearly sixty five per cent of the total work .force are even now engaged in agricultural and allied activities. The New Economic Policy (NEP-1991) introduced changes in the areas of trade policies, monetary and financial policies, fiscal and budgetary policies, and pricing and institutional reforms. Agricultural sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolve and any change in its structure is likely to have a corresponding impact on the existing pattern of Social equity. The liberalization of India’s economy was adopted in 1991. Facing a severe economic crisis, India approached the IMF for a loan, and the IMF granted what is called a structural adjustment loan, which is a loan with certain conditions relate to a structural change in the economy. Spread of new technology has been accompanied by the spread of capitalist production. By pushing the commercial crops to the forefront, the chances of the entry of the new market force have emerged. The government started several development programmes for rural areas. But the gap between the rural and urban areas still exist and to a large, India represents a dichotomy in development. The rural poor comprise of small landholders, agricultural laboures, artisans etc. Most of the benefits of the Green revolution have been covered by the big landowners and the rich peasants. regional disparities in the development of agriculture have increased.