the Criterion for growth in Indian economy is
a. increase in production of food grain
b. increase in industrial
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Answer:
Despite India’s per capita GDP doubling over the last decade, states like Goa compare to countries in Latin America, while states like Uttar Pradesh compare to low-income countries in sub-Saharan Africa in terms of their development outcomes. In this chapter, we identify that comparative advantages that arise due to resource availability, agro-climatic conditions, investments in human capital and the differential growth of the non-agricultural sector explain this subnational divergence. We show that states that continue to develop economic sectors in which they have no comparative advantages will remain locked into a low growth equilibrium. Reorienting agriculture based on comparative advantages in agricultural production, reducing entry barriers into the urban labor market and upskilling the rural and urban workforce are keys to develop equitable food systems for the future.
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2.1 Introduction
The Green Revolution of the 1960s transformed India from a net importer of food to a self-sufficient agricultural giant. This agriculture-led growth of the 1970s, along with liberalization policies of the 1990s, has been credited with catalyzing the country’s remarkable growth in the last two decades. In 2017, India became the sixth largest economy in the world, beating France and closely tied with the UK. Agricultural growth in the country has come to be associated with green paddy fields and overflowing storehouses of surplus grains. Economic development has created globally competitive companies and metropolises. The global face of the Indian labor force is both cosmopolitan and high skilled. Increasing incomes per capita of individuals, as represented by the growing size of the Indian middle class, has brought with it both reduction in overall poverty and a decrease in hunger and undernutrition across the country. On the global platform, India has emerged as a thought leader in discussions related to climate change, poverty and development and international trade. This economic progress of the country has come about due to its structural transformation1 (ST) from a subsistence agriculture-based economy to one that has a modernizing agricultural system over the last five decades. In line with the predictions of ST theory, India has also seen a decline in agricultural share in GDP, an increase in labor productivity, growth in urbanization and a reduction in poverty during this time.
Discussing India’s growth success as if it is a pan-India phenomenon overshadows the disparate experiences in its subnational growth process (U. Kumar & Subramanian, 2012; Kurian, 2000; Panagariya, Chakraborty, & Rao, 2014; P. Pingali & Aiyar, 2018). After growing by 1–2% between the 1960s and 1980s, India began to grow by 3–4% year on year in the post-liberalization era and around 6–7% over the last one and a half decades. A back of the envelop calculation suggests that there have been at least half of the Indian states that doubled incomes in the first 35 years after independence and then in approximately half the time doubled their incomes again. In other states, state GDP increased by less than double over the entire period (1960–2017). Even though doubling incomes within 60 years is impressive in and of itself, these divergent development experiences across states have created disparities in their development outcomes. The outcome of this regional disparity is reflected in Fig. 2.1. While India leads the South Asia experience for growth, some states such as Bihar and Uttar Pradesh have worse economic outcomes compared to some countries in sub-Saharan Africa. Other states such as Delhi and Goa are comparable to countries in Latin America. These stark differences in the regional growth experience are also reflected in other indicators such as nutrition or poverty. For example, undernutrition in Madhya Pradesh continues to remain a key nutrition challenge, but in Kerala, rising obesity has brought the problem of over-nutrition into focus. Similarly, while rural poverty in Punjab has reduced due to agricultural development, in Orissa, it remains high and spatially determined. Similarly, measures such as night light intensity—which capture economic activity and levels of urbanization—suggest higher development in the south and northwest areas of the country compared to others (Fig. 2.2).
Open image in new windowFig. 2.1
Fig. 2.1
International comparisons in GDP per capita (PPP in constant 2011 international $). Source: National Accounts Statistics & World Bank DataBank (2015–16); based on authors calculations
Open image in new windowFig. 2.2
Fig. 2.2
Growth of urban areas. Source: AidGeo Data; based on authors calculations
Explanation:
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Hello dear✌️
the answer ..is
increase in production of food grain ..
hope this may be correct answer✔️✔️