What do you mean by terms of trade between agriculture and industry? what is its current status in india?
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Terms of trade between agriculture and industry can be thought of as the ratio of prices of agricultural products to that of prices of industrial products. This is analogous to Interntional Terms Of Trade that are given by the formula:
(Price of exports)/ (price of imports).
Terms of trade between agriculture in industry rise when certain factors like transfer of resources between the sectors, migration, change in demand patterns, etc. cause the agricultural products to become more costly in terms of industrial products. (And vice versa)
Essentially, terms of trade can be thought of as the relative price of agricultural products in terms of industrial products.
For more information on the same, I found this article very useful :
http://www.economicsdiscussion.net/india/agriculture-india/changes-in-terms-of-trade-between-agriculture-and-industry/21599
(Price of exports)/ (price of imports).
Terms of trade between agriculture in industry rise when certain factors like transfer of resources between the sectors, migration, change in demand patterns, etc. cause the agricultural products to become more costly in terms of industrial products. (And vice versa)
Essentially, terms of trade can be thought of as the relative price of agricultural products in terms of industrial products.
For more information on the same, I found this article very useful :
http://www.economicsdiscussion.net/india/agriculture-india/changes-in-terms-of-trade-between-agriculture-and-industry/21599
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