How agriculture can improve national economy


  • Production of sufficient human food, feed, fiber, and fuel to meet the needs of a sharply rising population
  • Protection of the environment and expansion of the natural resources supply
  • Sustainment of the economic viability of agriculture systems

Transforming a country’s agriculture sector can create jobs, raise incomes, reduce malnutrition, and kick-start the economy on a path to middle-income growth. In fact, almost every industrialized nation began its economic ascent with an agricultural transformation.Dec 1, 2017


What is the importance of Agriculture in the national economy?

The importance of agriculture in the National Economy is explained by the following points. It is seen that agriculture contributes a major share in the national income of India. Secondly, the share of agriculture in national income has been decreasing.

Why government is reducing investment in agriculture sector?

Government is reducing investment in agriculture sector mainly in irrigation, power, rural roads, market and mechanisation. 2. Subsidy on fertilizers has decreased. 3.

Why is it important to increase the exports of agricultural products?

The progress in agricultural sector provides surplus for increasing the exports of agricultural products. In the earlier stages of development, an increase in the exports earning is more desirable because of the greater strains on the foreign exchange situation needed for the financing of imports of basic and essential capital goods.

Why should the process of economic development begin for agricultural sector?

As a matter of fact, if the process of economic development is to be initiated and made self-sustaining, it must begin for agricultural sector. Role of Agriculture in Economic Development:


How can agriculture improve the economy?

A strong agricultural economy brings social progress by increasing productivity, employment and income. Agriculture is the main driver of development in most rural areas. Demand for staple foods, agricultural commodities and – increasingly – processed food is growing in developing countries.

What does agriculture contribute to the national economy?

Agriculture plays a major role in economic growth and development. As the provider of food it is a cornerstone of human existence. As a furnisher of industrial raw materials it is an important contributor to economic activity in other sectors of the economy.

What is the main contribution of agriculture to the national economy class 10?

(i) It is the largest employment providing sector. (ii) It has provided a food surplus to our expanding population. (iii) It is providing raw material to industries. (iv) It is providing the majority of exports from India.

How agriculture is backbone of country economy?

Agriculture is the considered as the main occupation of majority of people in India. It has helped the India economy in the following ways: provides food and fodder. distribution of wealth.

What are the major roles of agriculture in the economy?

According to Muir, “Agricultural progress is essential to provide food for growing non-agricultural labour force, raw materials for industrial production and saving and tax revenue to support development of the rest of the economy, to earn foreign exchange and to provide a growing market for domestic manufactures.”

What are the contribution in the national economy?

The services sector generates 54.40 per cent of India’s total GVA of 169.61 lakh billion rupees. The industry provides 29.73 percent of GDP, with a GVA of Rs. 50.43 lakh crore. Agriculture and associated sectors account for 15.87 per cent of the total.

How does agriculture contribute to society?

Agriculture provides food, clothing, and shelter. It helps people to enjoy a higher quality of life.

How important is agriculture in the Philippines?

The sector is important for inclusive growth, with agriculture being the key driver of the economy in the rural areas where most Filipinos live (but where poverty incidence remains high). 2 Agriculture remains a major source of employment, with about 36% of the total employed population working in the sector.

What will happen if agriculture is good?

If the agricultural production is good, cultivators will earn more income. They will be in position to purchase manufactured products and other inputs required in agriculture. In short, we can say that the prosperity of the country will depend upon the prosperity of agriculture.

What is agricultural economics?

Agriculture Economics and Importance of Agriculture in National Economy. Agriculture Economics: Application of principles of general economic to agriculture is called as agricultural economics.

How much of India’s population is dependent on agriculture?

In India about 65 to 70 per cent population dependent on agriculture, the population remains almost constant for number of years. On the other hand in the developed countries less than 10 per population dependent on agriculture

Is India an agricultural country?

Indian is an agricultural country, where 70 per cent population is dependent on agriculture. This forms the main source of income. The contribution of agriculture in the national income in India is more, hence, it is said that agriculture in India is a backbone of Indian Economy.

Why is agriculture important?

Agriculture plays a critical role in transforming economies to reach the goal, along with achieving other essential development goals like en suring food security and improving nutrition. Therefore, in order to end hunger and undernutrition while accelerating economic growth, agricultural transformation must become a reality.

How does modernization affect agriculture?

Agricultural modernization prepares conditions for industrialization by boosting labor productivity, increasing agricultural surplus to accumulate capital, and increasing foreign exchange via exports.

What is the next key area for agricultural transformation?

The next key area for agricultural transformation is adoption of modern technologies, as farmers may not use such technologies even if they are available. Many technologies such as high-yielding seeds require stringent conditions for water, inputs, and knowhow.

What is the central goal of every developing country?

One of the central goals of every developing country is to reach high-income status.

What is economic transformation?

Economic transformation—also called structural transformation—means a country’s shift in the relative contribution of its technology and sectors to its overall Gross Domestic Product (GDP): From traditional technology to modern technology and from agriculture to industry and manufacturing, and then to a high-income service economy.

Why do governments need human capital?

Governments will also need to build human capital to ensure a skilled labor force to master new technology, handle logistics and boost each node of the value chain. Economic development is a process of structural transformation, and agriculture is the essential engine to jumpstart the process.

What is the other product contribution made by agriculture for the development of the non-agricultural sectors of the economy?

The other product contribution made by agriculture for the development of the non-agricultural sectors of the economy, especially the secondary sector, is in the form of provision of raw materials.

When the non-agricultural sectors are to be developed, will people have to shift from agriculture to various occupations

But they will require food for their sustenance even after shifting to new sectors. In fact their demand for food grains is likely to increase as a result of increase in their income after their transfer to the non-agricultural sectors.

Why does the demand for food grains increase?

The demand for food grains can also increase because of another reason. The farming population still left in agriculture might find its income increased due to higher prices of agricultural products as a result of increased demand. This may spur it to increase its own consumption also.

What is non-agricultural sector?

The non-agricultural sectors require funds for acquiring material capital. In the initial stages of their development, these funds will be generated in the agricultural sector and then transferred to the other sectors. In a closed economy in the initial stages, it is the agricultural sector which commands most of the income, capital and also labour.

What are the three potential sources of labour supply for the developing non-agricultural sectors?

There are three potential sources of labour supply for the developing non-agricultural sectors, namely: (i) Natural population growth, (ii) Immigration and. (iii) Farm population. The supply of labour from first two sources can never be smooth and adequate.

What happens to surplus products in agriculture?

Surplus products from the agricultural sector, as a result of its development, can move to the international market. This , in turn, can result in the flow of necessary capital as well as consumer goods from outside.

What are some examples of agro-based industries?

This is the case, for example, with agro-based industries like textiles, sugar, grain milling, hide processing etc.

Why is farming important in the United States?

Early in the nation’s life, farmers were seen as exemplifying economic virtues such as hard work, initiative, and self-sufficiency. Moreover, many Americans — particularly immigrants who may have never held any land and did not have ownership over their own labor or products — found …

What are the factors that contributed to the success of American agriculture?

Large capital investments and increasing use of highly trained labor also have contributed to the success of American agriculture. It is not unusual to see today’s farmers driving tractors with air-conditioned cabs hitched to very expensive, fast-moving plows, tillers, and harvesters.

What is the role of the American farmer?

The American Farmer’s Role in the US Economy. The American farmer has generally been quite successful at producing food. Indeed, sometimes his success has created his biggest problem: the agricultural sector has suffered periodic bouts of overproduction that have depressed prices.

Is farming important in 2020?

From the nation‘s earliest days, farming has held a crucial place in the American economy and culture. Farmers play an important role in any society, of course, since they feed people. But farming has been particularly valued in the United States.

Does North America have a drought?

Despite its generally benign weather, North America also experiences frequent floods and droughts. Changes in the weather give agriculture its own economic cycles, often unrelated to the general economy.

Do farmers have to repeal the laws of nature?

What’s more, researchers periodically introduce new food products and new methods for raising them, such as artificial ponds to raise fish. Farmers have not repealed some of the fundamental laws of nature, however. They still must contend with forces beyond their control — most notably the weather.

How can agriculture improve health?

How agriculture can improve health and nutrition. The agricultural sector presents key opportunities for improving nutrition and health. But this connection is often not given due attention, despite parallel initiatives across the three sectors. The potential impacts of agricultural activities on health and nutrition extend across a number …

Why is agriculture important for the poor?

Given the importance of agriculture for the livelihoods of the rural poor, agricultural growth has the potential to greatly reduce poverty – a key contributor to poor health and undernutrition.

What was the Green Revolution?

Over the past 40 years, agricultural advances, such as the Green Revolution, led to the doubling of cereal production and yields, improving the well-being of many people and providing a springboard for remarkable economic growth.

Why is it important to have partnerships between the private and public sectors?

Partnerships between the private and public sectors play an especially important role in improving the efficiency of post-harvest value chains.

How many people are hungry in the developing world?

Despite major progress, serious concerns remain about the nutrition and health situation throughout the developing world. An estimated 805 million people still go hungry and many people also suffer from hidden hunger, that is, deficiencies of essential vitamins and minerals, which are associated with a number of negative health and economic impacts. At the same time, 2.1 billion people worldwide (37% of men and 38% of women) are obese and overweight and this figure is rising (especially in the developing world), bringing with it a rise in non-communicable diseases (such as diabetes, heart disease and some forms of cancer).


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