India is the second largest agricultural producer in the world. In 2007, agriculture and related industries such as forestry and aquaculture accounted for 16.6% of the gross national product (GDP) of that year, accounting for about 60% of the total labor force. Although its share of GDP has declined in recent years, it is still the largest economic pillar and plays an important role in stabilizing India's social economy. Since 1950, the output per unit area of agricultural land in India has increased due to the vigorous promotion of the five-year plan, which has led to the rapid growth of agriculture in irrigation technology, agriculture and credit, and after the Green Revolution in India, the government began to subsidize farmers. Despite this, the ranking in agriculture is still only 30% to 50% of the highest level in the world.
India's agricultural productivity is low for the following reasons:
According to the World Bank report "India: Priorities of Agriculture and Rural Development", the Indian government's huge agricultural subsidies prevent investment from entering agriculture, which directly affects the improvement of agricultural productivity. Excessive administrative control has pushed up the cost and increased the price risk, thus making investors lack a sense of certainty about the future. Excessive government intervention in labor, land and credit has seriously affected the operation of the market mechanism. However, the infrastructure and related service industries urgently needed for agricultural development are underdeveloped.
Low literacy rate, general backwardness of economic and social development, slow land reform, insufficient or inefficient financial and market services.
Land policy and family property disputes make the average land occupied by each farmer very small (less than 20,000 square meters) and often fragmented. This has seriously affected the land use efficiency, caused over-cultivation, and led to high unemployment rate and low labor productivity.
The popularization rate of modern agricultural production methods and technologies is low. This is mainly because for a large number of small and medium-sized farmers, agricultural mechanization is too expensive and unrealistic. One of the reasons is that many people have insufficient knowledge of modern technology.
The World Bank believes that India's water resources are unevenly distributed, inefficient and lack of sustainability. The poor irrigation system has aggravated the water crisis in India. Data show that only 52.6% of farmland in India was irrigated in 2003-2004. There is a serious shortage of irrigation facilities in rural India, resulting in farmers still relying on the weather for food and relying heavily on natural conditions such as monsoon. The right monsoon may lead to strong growth of agriculture in the whole country, otherwise it will lead to agricultural depression. The credit needed for agriculture is supervised by the State-owned Development Bank of India (NABARD), which is the highest legal authority in rural development in the South Asian subcontinent.
There are many agricultural insurance companies in India, under the supervision of the Ministry of Agriculture, which provide farmers with insurance against natural disasters or catastrophic crop failures. The Agricultural Insurance Company of India is the leader of this kind of institutions, providing all kinds of insurance within the policy provisions for nearly 20 million farmers across the country.
The growth rate of population in India is higher than that of rice production. This may lead to a potential food crisis.
India is the world's largest producer of milk, coconut, ginger, turmeric, tea and black pepper. At the same time, it also has the largest number of cattle raised as soon as possible in the world (1 193 million). It is also the second largest producer of wheat, rice, sugar peanuts and freshwater fish in the world. Plus the third largest tobacco producer in the world. One tenth of the fruits in the world are produced in India, among which banana sapota (suspected to be ginseng fruit) and mango rank first in the world.
industry
Industry accounts for 27.6% of GDP and the employment rate is 17% of the total labor force. Although about one-third of the factory labor force is only engaged in simple family OEM. India's small industrial products rank 16 in the world, and their small industrial emissions account for about 5% of global emissions.
Economic reform has brought foreign competition, so some public enterprises have turned to private enterprises, and opening up to public departments has brought about mass production of people's livelihood consumables. After opening up, those private family enterprises that often engage in monopoly operations need good political hooks to compete with foreign enterprises and cheap China goods. Changes since then have included cutting costs, improving management, focusing on developing new products and relying on low-cost labor and technology.
Textile industry is the second largest source of labor after agriculture, and about 26% of India's exports come from textiles. Tirpur socks, knitted sweaters, casual clothes and sportswear have long been generally accepted. The leather products in Dharavi slum have enjoyed some fame, and Tata Motors' Nano tries to become the cheapest car in the world.
India is the 15th largest service country in the world, providing 23% of the world's employees. This figure has grown rapidly, with only 4.5% in 195 1~ 1980, but it has been in 199 1~2000. As a result, the GDP was extremely high, rising from 15% in 950 to 55% in 2007.
Business services (information technology, information technology services, and commodity outsourcing) are the fastest growing projects in 2000, accounting for one third of the total output services. The growth of IT industry is attributed to high-tech and high-professional but extremely low production costs, and workers with fluent English, as suppliers, cooperate with customers to enhance their interest in India's service industry or increase outsourcing opportunities. The national GDP of India's IT industry has grown from 4.8% in 2005-06 to 7% in 2008. By 2009, seven Indian companies had squeezed into the top 15 outsourcing companies in the world. In March 2009, the total annual revenue of outsourcing companies in India was as high as $60 billion. Experts estimate that by 2020, this amount will be 2 trillion 25 billion dollars.
Most Indians are used to buying in traditional markets or independent grocery stores collectively known as kirana. Because the government does not encourage foreign investment in India's retail industry, by 2008, chain fresh supermarkets only accounted for 4% of all Indian shopping malls. Moreover, foreign merchants must abide by more than 30 relevant regulations, such as signboard license and anti-hoarding treaty. Moreover, not only the import and export tax on goods, but also the tax on domestic movement.
Tourism is not well developed in India, with an output value of only two digits. Some hospitals are eager to develop medical travel.
service sector
See: Offshore Outsourcing in India.
financial industry
See also: Indian Banking and Indian Insurance.
India's financial market can be divided into organized sectors (including private enterprises, public utilities and foreign commercial banks and cooperative banks, collectively known as planned banks and unorganized sectors (including local banks or credit and non-bank financial companies owned by individuals or families <: NBFCs> ）。 Unorganized departments still have a larger market than traditional banks in rural areas and semi-developed cities, especially for non-productive loans, such as weddings, funerals and celebrations or short-term loans.
Indira? Prime Minister Gandhi announced the nationalization of 14 banks in 1960, and opened six more banks in 1960, and stipulated that banks should provide 40% priority loans for the development of agriculture, small industries, retail trade and small and medium-sized enterprises. So as to ensure that banks fulfill their obligations to social development. After that, the total number of bank branches in India increased from 10,120 in 1969 to 98,910 in 2003, and the number of people served by a bank branch decreased from 63,800 to 1.5 million. The total deposit of 197 1 year is 32.6 times higher than that of 199 1 year, and 7 times higher than that of 195 1 year.
natural resource
See: India's energy policy.