A Graph given below shows the production of goods and services in the three sectors of the economy. This is shown for two years, 1973-74 and 2013-14. Analyze the data provided and answer the following questions.
1. Which was the least producing sector in 1973-74? State the reasons.
Answer by Student
The least-producing sector in 1973-74 was the secondary sector . The reasons are:
- The secondary sector includes manufacturing , construction , and electricity .
- India was a closed economy at that period, which means that it had limited trade and investment with other countries.
- Industrial policy restricted the freedom to enter various kinds of industries and tedious licensing policy discouraged new players from coming in.