Agriculture

only for those who are specialist in M.A. Economics (indian economy)?

i couldn’t b able to find these answers of these questions
1.”Declining share of agriculture in GDP has not been accompanied by commensurate decline in workforce in agriculture.”Comment.
2. “Economic policy in India is purely a political process”.Comment
3.What is gross value added & net valur added?
4.what is meant by money value of all final goods?
want each answer in explanation .Hints in Q1 & Q2 are acceptable.

!. In India the share of agriculture in GDP is not rising (rather declining) at the same pace as that of the Industry or IT etc., but, the number of persons associated with the agriculture is incresing due to rise in population as well as un-employment. Therfore, the declining share of agriculture in GDP has not been accompanied by commensurate decline in workforce in agriculture.
2. In the presence of a more globalized environment all over the world, the policies of a country acts as a key determinant for getting the real benefits of the same. Particularly for the developing nations, the Government’s policies largely affect its economic environments. After the adoption of the new economic policy in India, the country has reviewed its policies and made it more friendly in almost all the sectors. Here in this policy watch section we have covered the policies formulated by India upon different sectors.
By going through the above captuion one canm see that the Parliament is framing the economic policy based on the compulsions of the political parties, and pressures from the World Bank and IMF etc. the true target persons are not involved in the process.
Therefore, Economic Policy in India ispurely a political process.

3. Value added refers to the additional value created at a particular stage of production or through image and marketing. In modern neoclassical economics, especially in macroeconomics, it refers to the contribution of the factors of production, i.e., land, labor, and capital goods, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The factors of production provide “services” which raise the unit price of a product (X) relative to the cost per unit of intermediate goods used up in the production of X. Value added is shared between the factors of production (capital, labor, also human capital), giving rise to issues of distribution.

GVA measures the contribution to the economy of each individual producer, industry or sector..
Gross value added recognizes that each step adds value as agri-food products move forward through the marketing chain. The cost of agri-food (raw or intermediate) products is subtracted from sales to avoid double-counting the value added earlier by other agri-food businesses. Thus, in the agri-food system,

GROSS VALUE ADDED = PRODUCT SALES less
COST OF GOODS & SERVICES PURCHASED FROM AGRI-FOOD SYSTEM
Net Value Added:
An agri-food business usually must use inputs from industries that are not part of the system. Fuel, packaging, electricity, office supplies, and legal services are some examples. Since the cost of these goods and services was not subtracted, a portion of an agri-food gross value added is actually contributed by other sectors of the economy. This outside value added can be deducted to get net value added in the agri-food system, where

NET VALUE ADDED = GROSS VALUE ADDED less
COST OF GOODS & SERVICES PURCHASED FROM
SUPPLIERS OUTSIDE THE AGRI-FOOD SYSTEM

Since net value added deducts the cost of all purchased inputs except an industry’s own factors of production, it represents the total returns to all factors employed by the industry. Net value added should not be confused with producer profits, which deduct the cost of factors of production. Net value added is a legitimate and, from economists’ perspective, the preferred measure of an industry’s contribution to the economy. Net value added is comparable to the figures given in national or state domestic product and income accounts.

4. An estimate of the total money value of all the final goods and services produced in a given one-year period by the factors of production owned by a particular country’s residents. (“Final” goods and services means goods and services sold or otherwise provided to their final consumers — that is, to avoid double counting, the value of steel sold to GM to make a car is not added separately into the GNP or GDP totals because its value is already included when we add in the final sales price of the car to the customer.)

GNP and GDP are very closely related concepts in theory, and in actual practice the numbers tend to be pretty close to each other for most large industrialized countries. The differences between the two measures arise from the facts that there may be foreign-owned companies engaged in production within the country’s borders and there may be companies owned by the country’s residents that are engaged in production in some other country but provide income to residents. So, for example, when Americans receive more income from their overseas investments than foreigners receive from their investments in the United States, American GNP will be somewhat larger than GDP in that year. If Americans receive less income from their overseas investments than foreigners receive from their US investments, on the other hand, American GNP will be somewhat smaller than GDP.

GDP Live: Where India matters – 2

Tags: agriculture gdp india, agriculture gdp india 2007, agriculture gdp india 2009, agriculture gdp india 2011, agriculture gdp indian economy

This entry was posted on Sunday, February 12th, 2012 at 12:51 am and is filed under Agriculture. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.