The Indian strategy of development can be traced well with the structural development theory. The country in the past relied heaving on agriculture and created five year plans where the growth was sustained (Chakravarty, 1990). However, after the 1990s the country has become more open in its trading policies and this have significantly improved the economy, yet it has created some contradictions.
Given that the country was heavily reliant on agriculture in the past, the transition has created issues in the form of intensifying the capital intensive sector while the labor force is growing at a rate that could be met only if there was a balance between capital intensive sectors and agribusinesses. The unskilled jobs that increased with industrialization led to much of the agricultural workers moving to the cities leading to unemployment issues in the city. Women who were unskilled laborers in agricultural units find it hard to find employment. “In recent years’ agriculture had depended heavily on the increased provision of industrial and infrastructural inputs.
It is quite clear that the benefits have accrued to large farmers to a disproportionate extent” (Katiyar, 2011). This is an issue even though most of the benefits are presented at well subsidized costs, because of the policy and infrastructure of the country. Although plans are made to efficiently aid development, the delivery model still needs work. In the industrial sector, concessions have been made with respect to taxation. However, the home demand in the country is very less leading to cutbacks within the industries which adds to the problem of un-employment. Agricultural production demands exist, but combined with the industrial development, most productions would be exported, an internal demand would help the country better.
An increased internal demand will also lead to cost reduction of the machinery that is used in agricultural sector (Banerjee, and Duflo, 2005). The demand could be used to provide training to currently undeveloped women who are working as unskilled workers in the agricultural sector. Furthermore, according to the Lewis model (two sector model) which is a structural approach itself, an underdeveloped economy would have two sectors, an overpopulated rural subsistence sector and an under or moderately populated urban industrial sector (Smith, and Todari, 2003).