1. Agrarian Economy

An economy is called agrarian if its share of the primary sector is 50 per cent or more in the total output (the GDP) of the economy. At the time of Independence, India was such an economy. But now it shows the symptom of a service economy with the primary sector’s contribution falling to almost 18 per cent of its total produce, while almost 49 per cent of the population depends on the primary sector for their livelihood. Thus, in monetary terms India is no more an agrarian economy, however the dependency ratio makes it so—India being the first such example in the economic history of the world.