During 1946, industrial production in India was 2,800 million units while agricultural production was 4,500 million units. Compute the ratio of industrial to agricultural production (expressed as a decimal). Then explain one major reason for the low ratio and suggest a policy measure that could address that reason.
Answer
0.62
The correct answer is 0.62 — Suggest policy measure: establish industrial credit societies offering low‑interest loans to entrepreneurs.
Step-by-step solution
- Divide industrial by agricultural units:
- Round to two decimal places:
- Identify a major reason for low ratio: lack of capital investment in industry.
- Suggest policy measure: establish industrial credit societies offering low‑interest loans to entrepreneurs.
Common mistake: Dividing in wrong order or ignoring rounding
Concept tested: Ratio calculation and industrial analysis
Published · How this solution was prepared and checked
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