Shortly before Prime Minister Narendra Modi of India was elected to a second term in 2019, an

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Shortly before Prime Minister Narendra Modi of India was elected to a second term in 2019, an article in the Wall Street Journal discussing some of that country’s economic problems noted, “Agriculture provides nearly half India’s employment, even though those workers earn less than 20% of the national income.”

a. Why would incomes in agriculture be lower than incomes outside agriculture?

b. Why might having such a large agricultural sector be considered an economic problem for India? Is there any sense in which having a large agricultural sector could be an opportunity for the Indian government as it pursues ways to increase the future standard of living in the country? Briefly explain.

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Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

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