Question

Despite the increasing size of the services sector, India still is largely an agricultural country. Give reasons.

Answer 1

Even if the services sector is growing, India is still mostly an agricultural nation. The reasons are:

1. The urban middle class is expanding along with the values of the urban middle class that we see in movies and television shows. The service sector, which includes stores, banks, the IT sector, hotels, and other services, is also hiring more people.
2. However, we also see that relatively few Indians have access to stable employment, and the growing number of contract workers is making even those few in regular salaried employment more precarious.
3. One of the main ways to improve the population's well-being was through government employment, but even that is declining these days. Disinvestment is the process by which the government tries to sell its stake in a number of public sector businesses. Many government employees fear they may lose their employment as a result of disinvestment.
4. Although they contribute significantly to pollution, large enterprises do not always create jobs for the local population. Therefore, global liberalisation and privatisation seem linked to an increase in income inequality.
5. Furthermore, government support through subsidies, minimum support prices, and rural development policies ensures agriculture remains a vital sector of the economy. These factors collectively sustain India's identity as an agricultural country.