Tag: foreign trade in india

Agriculture plays a major role in the overall development of the economy. Agriculture can be defined as the primary sector of the Indian economy. Agricultural sector is reponsible for providing employment to the 70% population of the country.

Agriculture sector can help in solving problems of urban congestion and pollution in urban areas. While all other sectors like, service sector, industrial and banking sector are responsible for adding up the problem of urban congestion and pollution in urban areas. Agriculture helps to maintain a sustainable environment.

Capital output ratio is low in agricultural sector. Capital output ratio of agricultural sector implies the agricultural output in terms of the capital invested in the sector. It is quite low in the primary sector of the economy because many people are employed in this sector and the marginal output will increase if some people step back from getting employed in the agricultural sector.

Agriculture is primary occupation in India. Agricultural sector is also known as the primary sector of the economy of India. This sector is responsible for providing employment to the 70% of the population of the country according to the 2011 census.

The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 percent in the year 1990-1991.

Small scale industrial committee was set up in the year 1955. It was also called a Karve committee. It was named after Dattatreya Gopal Karve who was an Indian economist and professor who contributed to the fields of economics, public administration, and the cooperative movement in India. Karve committee was set up in the year 1955 for the growth of small scale industries.

Economic liberalization of India was initiated in the year 1991. The main goal of liberalization is to make economy more market oriented with expanded role of private and foreign investment. The former prime minister P V Narasimha Rao spearheaded economic liberalization policies in the early 1990s.

New Industrial Policy, 1991 aimed to liberalise the economy by removing the hurdles in industrial growth. An important step taken in this context is that the public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high technology and essential infrastructure industries. This would improve the performance of the public sector units.

Thus, the correct answer is C.

In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD)  and the International Monetary Fund (IMF).