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economic strength. It is striking that the relative proportions of the three
economic sectors have changed radically since India's Independence
(1947). Thus, for example, the producing sector has doubled since 1950.
In 1991/92 the share of this sector in the GIP was only 27%. The share of
the primary sector was 34% and that of the service sector 39%. The aim
of Mixed Economy and especially that of the industrial policy since the
1950s was to substantially increase the share of the secondary sector.
Therefore, the ideas of reform first started germinating in the 1970s and
struck root in the 1980s under Rajiv Gandhi when the liberalisation policy
was initiated.
(The relative share of the three sectors in the GIP).
Source: Government of India (cd): Economic Survey 1991-92 Part II Sectoral
Developments, Delhi 1992, p.S-4
The net output of the primary sector has declined considerably
since 1965. In contrast, agriculture provides occupation to 2/3rd of the
earning population.
The agricultural output depends even today, in the main, on the
pattern of the precious monsoon. If the monsoon fails, as for instance, it
happened in 1987, it has consequences though not to the extent of a
famine. However, failure of monsoon does have a negative impact on the
crop yield and thereby on the living conditions of the rural population.
Rural economy is by and large subsistence economy. Nevertheless, it was
by and large possible to realize the supreme objective of agricultural
policy, i.e. self sufficiency in food and hence freedom from dependence
on import of food items. In the fishing sector India has achieved quite a
significant position as an exporter of goods of primary sector. In future,
