ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The industry and services sectors, which constitutes more than 80 per cent of the gross value added in the country, provides employment to 54.4 per cent of the workforce, and, agriculture, which accounted for 18.29 per cent of GVA in 2019–20, retains 45.6 per cent workforce.

Detailed explanation-2: -First, in a grow-ing world economy (or a closed national economy), agriculture’s shares of GDP and employment are likely to decline because the income elasticity of demand for food is less than one; to avoid this would require a heavy bias in productivity growth towards the non-farm sector.

Detailed explanation-3: -With growth in labor productivity, an economy is able to produce increasingly more goods and services for the same amount of work. And, because of this additional production, it is possible for a greater quantity of goods and services to ultimately be consumed for a given amount of work.

Detailed explanation-4: -As a result of agricultural progress, there will be extension of market for industrial products. Increase in agricultural productivity leads to increase in the income of rural population which is turn leads to more demand for industrial products, thus development of industrial sector.