Question
With reference to Indian economy, consider the
following statements: 1. Primary sector comprises more than half of the employed workforce of the Indian economy. 2. Contraction has been witnessed in the service, industries and Agriculture sector in financial year 2020-2021 in the backdrop of pandemic. Which of the statements given above is/are incorrect?Solution
â—Ź Statement 1 is Incorrect: The primary sector in India (agriculture and mining sectors) contributes around 16 per cent of Gross Value Added (GVA) while it employs around 43 per cent of the workforce (as per PLFS, 2018-19). This indicates the huge potential to provide gainful employment opportunities for people employed in these sectors. â—Ź Statement 2 is Incorrect: Industry and Services are estimated to contract by 9.6 per cent and 8.8 per cent during the year. On the other hand, Agriculture cushioned the shock of the COVID19 pandemic on the Indian economy in 2020-21 with a growth of 3.4 per cent in both Q1 and Q2. It is the only sector that has contributed positively to the overall Gross Value Added (GVA) in both Q1 and Q2 2020-21.
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