IMPLICATIONS OF INTER-SECTOR INEQUALITY IN INDIA

A final draft submitted in fulfilment of the course of Economics- II for attaining the degree of
B.A. LL.B.

Final submission made by -

Vibhuti Sharma

B.A. LL.B.

Roll No. 1772

Final submission made to -

Dr. Shivani Mohan

Faculty, Economics- II

March, 2019

Chanakya National Law University,

Nyaya Nagar, Patna – 800001

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 DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B.A., LL.B (Hons.) Project Report entitled
“Implications of Inter-sector Inequality in India” submitted at Chanakya National Law
University is an authentic record of my work carried out under the supervision of Dr. Shivani
Mohan. I have not submitted this work elsewhere for any other degree or diploma. I am fully
responsible for the contents of my Project Report.

SIGNATURE OF CANDIDATE

NAME OF CANDIDATE: VIBHUTI SHARMA

CHANAKYA NATIONAL LAW UNIVERSITY, PATNA.

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 ACKNOWLEDGEMENT

I would like to thank my faculty Dr. Shivani Mohan whose guidance helped me a lot with
structuring my project.

I owe the present accomplishment of my project to my friends, who helped me immensely with
materials throughout the project and without whom I couldn’t have completed it in the present
way.

I would also like to extend my gratitude to my parents and all those unseen hands that helped
me out at every stage of my project.

THANK YOU,

NAME: Vibhuti Sharma

COURSE: B.A. LL.B. (Hons.)

ROLL NO: 1772

SEMESTER – Fourth

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 CONTENT

1. Introduction ........................................................................................................................ 6
2. History of Banking and Agriculture in India .................... Error! Bookmark not defined.
A. History of Banking in India .......................................... Error! Bookmark not defined.
B. History of Agriculture in India ..................................... Error! Bookmark not defined.
3. Agriculture Credit and Commercial Banks ...................... Error! Bookmark not defined.
TYPES OF CREDITS .......................................................... Error! Bookmark not defined.
A. Long Term Credit ......................................................... Error! Bookmark not defined.
Land Development Banks : .............................................. Error! Bookmark not defined.
Structure : ......................................................................... Error! Bookmark not defined.
Raising Funds : ................................................................. Error! Bookmark not defined.
CROP LOAN ....................................................................... Error! Bookmark not defined.
4. Agricultural loans ............................................................. Error! Bookmark not defined.
5. COOPERATIVE AGRICULTURAL BANK .................. Error! Bookmark not defined.
A. National Bank for Agriculture and Rural Development or NABARD ..................Error!
Bookmark not defined.
B. Bihar State Co-operative Bank Limited (BSCB) .......... Error! Bookmark not defined.
C. Haryana State Co-operative Apex Bank Limited (HARCOBANK) . Error! Bookmark
not defined.
D. National Federation of State Co-operative Banks Limited (NAFSCOB) ..............Error!
Bookmark not defined.
E. Orissa State Co-operative Bank Limited (OSCB) ........ Error! Bookmark not defined.
F. Repatriates Co-operative Finance and Development Bank Limited.. Error! Bookmark
not defined.
G. Punjab State Cooperative Agriculture Development Bank Ltd ... Error! Bookmark not
defined.
H. Andhra Pradesh State Cooperative Bank Limited (APCOB) ...... Error! Bookmark not
defined.
6. Nationalised Banks ........................................................... Error! Bookmark not defined.
A. Allahabad Bank ............................................................. Error! Bookmark not defined.
B. Andhra Bank ................................................................. Error! Bookmark not defined.
C. Bank of Baroda ............................................................. Error! Bookmark not defined.
D. Bank of India................................................................. Error! Bookmark not defined.
E. Bank of Maharashtra ..................................................... Error! Bookmark not defined.
F. Canara Bank .................................................................. Error! Bookmark not defined.

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 G. Central Bank of India .................................................... Error! Bookmark not defined.
H. Corporation ................................................................... Error! Bookmark not defined.
I. Dena .............................................................................. Error! Bookmark not defined.
J. Indian ............................................................................ Error! Bookmark not defined.
K. Indian ............................................................................ Error! Bookmark not defined.
L. Oriental ......................................................................... Error! Bookmark not defined.
M. Punjab ........................................................................ Error! Bookmark not defined.
N. Punjab ........................................................................... Error! Bookmark not defined.
O. Syndicate ....................................................................... Error! Bookmark not defined.
P. UCO .............................................................................. Error! Bookmark not defined.
Q. Union............................................................................. Error! Bookmark not defined.
R. United............................................................................ Error! Bookmark not defined.
S. Vijaya ............................................................................ Error! Bookmark not defined.
7. SCHEMES FOR AGRICULTURE FINANCE ............... Error! Bookmark not defined.
A. SBT KISAN GOLD CARD SCHEME (General Agriculture Term Loan) .........Error!
Bookmark not defined.
B. KISAN CREDIT CARD SCHEME ............................. Error! Bookmark not defined.
C. HOMESTEAD FARMING .......................................... Error! Bookmark not defined.
D. LOAN FOR ESTATE PURCHASE ............................. Error! Bookmark not defined.
E. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR
AGRICULTURALS............................................................. Error! Bookmark not defined.
F. SCHEME FOR CULTIVATION OF MEDICINAL PLANTS ... Error! Bookmark not
defined.
G. SBT RAIN WATER HARVESTING SCHEME ......... Error! Bookmark not defined.
H. PRODUCE MARKETING LOAN (Advance against Warehouse Receipt) .........Error!
Bookmark not defined.
I. MINOR IRRIGATION ................................................. Error! Bookmark not defined.
J. AGRICULTURE GOLD LOAN .................................. Error! Bookmark not defined.
K. SCHEME FOR DEVELOPMENT / STRENGTHENING OF AGRI. MARKETING
INFRASTRUCTURE, GRADING AND STANDARDIZATION .... Error! Bookmark not
defined.
L. CONSTRUCTION / RENOVATION / EXPANSION OF RURAL GODOWN ..Error!
Bookmark not defined.
8. Conclusion and Suggestion .............................................. Error! Bookmark not defined.

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 1. INTRODUCTION

The three sectors constituting an economy are the Agricultural or Primary sector, the Industry
or Secondary sector and the Services or Tertiary sector. The primary sector is directly
concerned with natural resources of the country. Agricultural, forestry, fishing and mining
constitute the primary sector. The primary sector utilizes the natural resources and produces
raw materials and basic goods which may be used by the industries or by the end-users. Hence,
it can be said that the primary sector serves as a basic sector assisting the growth of the
secondary and tertiary sectors. The Secondary sector consists of the industrial sector, engaged
in construction activities and manufacturing of finished goods and tangible products. The
secondary sector performs the vital role of catering to the needs of potential consumers of the
nation. The Tertiary sector is intangible in nature, concentrating on the services sector. This
sector consists of provision of services such as education, medical, hotel and finance needed
by the consumers. Early civilization started with excessive reliance on the primary sector.
However, with extreme spurt in food production, people started to turn to industries. This led
to the industrial revolution during the 19th century. Rapid industrialization saw the
development of the support system in the form of the services sector. Thus, the economy
evolved from the primary sector to the tertiary sector gradually in phases. The level of
development achieved by any nation is indicated by the position of these three sectors. Any
nation in which majority of its GDP is contributed by the Agricultural sector is an Under-
developed nation, while a country whose GDP is largely accounted for by the Industrial sector
may be termed as a Developing nation. In case a nation‘s GDP is largely contributed by the
Tertiary sector, the nation may be categorized as a Developed Nation.

The Indian economy has witnessed rapid development since independence through its well
executed five year plans and formulation of effective Government policies, both fiscal and
monetary. India is currently the eleventh largest economy in the world (IMF 2011). India‘s
total GDP is about $1.676 trillion and GDP growth rate was 2 5.5%. India is currently growing
at a rapid pace next only to China. India is one of the very few countries which has
accomplished a positive growth rate despite the global recession. Agriculture is the important
sector of India as the country is still an agro-based economy. Agriculture feeds almost 52% of
the country‘s population. Almost 17.2% of India‘s GDP is contributed by Agriculture, while
the Secondary sector contributes almost 26.4% of GDP and provides employment to about 14%
of the population. The tertiary sector contributes almost 57.2% of the nation‘s GDP, employing
about 34% of the population. The Tertiary sector consists of transport, distribution of goods,

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wholesaling, retailing, after sales service, maintenances etc. The Tertiary sector has witnessed
a rapid development in the past two decades. This has significantly contributed to the boosting
of the Indian economy.

HYPOTHESIS

The researcher presumes that :

1. Intersectoral Inequality is a hindrance in determining the true growth of a country.

2. The rising contribution of the service sector in GDP is alarming and problematic.

RESEARCH METHODOLOGY

The researcher proposes to take a doctrinal research.

REVIEW OF LITERATURE

The researcher has examined the primary and secondary sources of data in the project. The
primary sources are official data websites. The secondary sources are books, journals,
magazines, newspaper etc.

LIMITATIONS FOR RESEARCH

 Because of posterity of time, money and resources.

SCOPE OF STUDY

 It will be useful for the society and government.

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 2. SECTORS : PRIMARY, SECONDARY AND TERTIARY

 AGRICULTURE AND ALLIED SECTOR OR PRIMARY SECTOR

Agriculture is the most important sector of India, providing employment to majority of our
population. Primary activities are directly dependent on environment as these refer to utilisation
of earth’s resources such as land, water, vegetation, building materials and minerals. It, thus
includes, hunting and gathering, pastoral activities, fishing, forestry, agriculture, and mining and
quarrying.1

Theodore Schultz in his Noble (Economics) acceptance speech in 1979 observed, “Most of
the people in the world are poor... Most of the world’s poor people earn their living from
agriculture, so if we knew the economics of agriculture we would know much of the
economics of being poor” (Shultz, 1979). This throws light on the importance of primary
sector in economies of the world. Understanding the structure of the economy is critical for
both the economic planners and the government of that country to plan, to govern and
consistently take the economy towards a growing path. A steady and reliable economic
growth is vital for any country because it helps its citizens to have a better standard of living
and create enough surpluses that help in facing the adversities.

http://www.uni-mysore.ac.in/sites/default/files/content/abhyudaya_newsletter_14_final.pdf

https://bizfluent.com/info-8564100-primary-secondary-tertiary-sectors.html

https://www.toppr.com/guides/economics/sectors-of-the-indian-economy/introduction-sectors-
indian-economy/

https://www.clearias.com/sectors-of-economy-primary-secondary-tertiary-quaternary-quinary/

https://www.saisd.net/admin/curric/sstudies/resources/teacher_zone/Hands_On/geo_culture/pdf/
ho_wg_4econ_activi.pdf

https://www.jagranjosh.com/general-knowledge/what-is-the-sectorwise-contribution-in-gdp-of-
india-1519797705-1

https://www.clearias.com/indian-economy-overview/

http://shodhganga.inflibnet.ac.in/bitstream/10603/23402/10/10_chapter%201.pdf

http://www.ncert.nic.in/ncerts/l/jess202.pdf

"Primary sector of the economy". Economics Help. Retrieved 24 January 2018.

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