How can you classify the credit activity of Indian Economy? social science class 10 anyone plz help me...very urgent
Answers
Answer:
Imagine what would happen if farmers
refuse to sell sugarcane to a particular
sugar mill. The mill will have to shut
down.
Imagine what would happen to cotton
cultivation if companies decide not to
buy from the Indian market and import
all cotton they need from other
countries. Indian cotton cultivation will
become less profitable and the farmers
may even go bankrupt, if they cannot
quickly switch to other crops. Cotton
prices will fall.
Farmers buy many goods such as
tractors, pumpsets, electricity,
pesticides and fertilisers. Imagine what
would happen if the price of fertilisers
or pumpsets go up. Cost of cultivation
of the farmers will rise and their profits
will be reduced.
People working in industrial and service
sectors need food. Imagine what would
happen if there is a strike by
transporters and lorries refuse to take
vegetables, milk, etc. from rural areas.
Food will become scarce in urban areas
whereas farmers will be unable to sell their products.