Why Indian economy is called an agro-based economy?

1.	Why Indian economy is called an agro-based economy?
Answer» (big or small) don’t pay any tax - thus Direct tax revenue is nil - no contribution is recorded to the economy directly Only at the Value addition point or at the SELLING point in a packaged format it attracts Sales tax - this is accounted in GDP and there are lot of loop holes to avoid tax - this taxing of food STUFF is not strictly implemented - which also has some benefits such as keeping the prices in control In the PDS system (Ration shops) also no tax - no contribution to economy directly Lot of MIDDLE men are DEALING with Agricultural commodities are also doing it outside the purview of Economic accounting (GDP) Agricultural waste - which are of important value like molasses etc. are also not counted as PART of GDP - no contribution to economy directly

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