Agriculture plays a vital role in the Indian economy. Over 70 per cent of the rural households depend on agriculture. Agriculture is an important sector of Indian economy as it contributes about 17% to the total GDP and provides employment to around 58% of the population.
What are the advantages of Agriculture to the Indian economy?
1 Generates employment. Agricultural activities serve as the key source of employment opportunities for an Indian economy. … 2 Contributes to capital formation. This sector makes great contribution towards the capital formation in country. … 3 Source of Food supply. … 4 Earner of foreign exchange. …
How does agriculture affect the rate of capital formation in India?
Since agriculture happens be the largest industry in developing country like India, it can and must play an important role in pushing up the rate of capital formation. If it fails to do so, the whole process economic development will suffer a setback.
How did agriculture change after the independence of India?
During Independence there was extremely low productivity per hectare and per worker. However, the previous trend of stagnant agriculture was completely changed due to the introduction of economic planning since 1950-51, and with special emphasis on agricultural development, particularly after 1962.
What percentage of the Indian population is engaged in agriculture?
It employs around two-third of the Indian population which depends primarily upon agricultural activities for earning their livelihood. At present around 66% of our population is engaged in agriculture which is quite large as compared to their countries around the globe.
How does agriculture affect India’s economy?
Agriculture has formed the backbone of India’s economy for many decades and remains crucial to providing food security for the country’s growing population. It constitutes a major pillar of India’s economic growth and a significant contributor to its growing exports sector.
How does agriculture affect the economy?
What is agriculture’s share of the overall U.S. economy? Agriculture, food, and related industries contributed $1.055 trillion to the U.S. gross domestic product (GDP) in 2020, a 5.0-percent share. The output of America’s farms contributed $134.7 billion of this sum—about 0.6 percent of GDP.
What is agriculture in Indian economy?
Agriculture is the most important sector of Indian Economy. Indian agriculture sector accounts for 18 per cent of India’s gross domestic product (GDP) and provides employment to 50% of the countries workforce. India is the world’s largest producer of pulses, rice, wheat, spices and spice products.
What is the main importance of agriculture in Indian economy?
The importance of the agriculture sector in the Indian economy is given below; Agriculture is one of the major players in the economy and it is the backbone of the country. This is the basic activity of the nation. It provides employment opportunities to rural agricultural and non-agricultural laborers.
How agriculture is the backbone of Indian economy?
Answer: Agriculture is called the backbone of Indian economy because 70% of Indian population are engaged in agriculture and raw material for the Industrial sectors like food processing company, textile industry comes from the agricultural sector.
How can agriculture contribute to the country’s economic development?
Agricultural modernization prepares conditions for industrialization by boosting labor productivity, increasing agricultural surplus to accumulate capital, and increasing foreign exchange via exports.
Why is agriculture important for Indian economy Upsc?
Addresses Malnutrition and provides food security: Agriculture holds a key to reducing India’s malnutrition problem, directly affecting public health and worker productivity. Augmenting Economic Growth: Agriculture has the potential to spur India’s overall gross domestic product (GDP) growth.
What is the importance of agriculture in the Indian economy explain any four points?
It is the primary activity of the nation. It provides employment opportunity to the rural agricultural as well as non-agricultural labourers. It is the source of food and fodder. It also plays an important role in international business in import and export activities.
What is the importance of agriculture in Indian economy Class 10?
It ensures food security for the country and produces several raw materials for industries.
Which sector is the backbone of Indian economy?
There are 63.4 million MSMEs in India which contributes around 29% of India’s GDP, 49 % of exports, MSME sector is considered as the backbone of Indian economy, as it provides employment to 111 million people, said Shri Reddy.
Importance of Agriculture in the Indian Economy
The importance of the agriculture sector in the Indian economy is given below;
Key objectives of agriculture in the Indian economy
To improve the economic potential of farming by significantly increasing the net income of farmers and to ensure that agricultural growth is measured by the progress made in that income.
Facts about the role of agriculture in the Indian economy
To assess the role and importance of agriculture, it is necessary to assess its role in the development of the economy. Such a contribution can be measured in terms of its share of gross domestic product (GDP), employment, exports, etc.
Role of agriculture in the Indian economy
From the very beginning, agriculture has been contributing a large share to our national income. Agriculture and allied activities contributed about 59% to the total national income.
Commercial importance and industrial development for agriculture in India
Indian agriculture is playing a vital role in the country’s internal and external trade. Agricultural products such as Tea, Coffee, Sugar, Tobacco, Spices, Cashews, etc. are the mainstays of our exports and account for about 50% of our total exports.
Role of Agriculture for Industrial Development
About 50% of the income generated in the manufacturing sector in India comes from all these agro-based industries. Furthermore, agriculture can provide a market for industrial products as an increase in the level of agricultural income can lead to the expansion of the market for industrial products.
Major crop production in India
Horticulture is one of the important sectors of Indian agriculture and it plays an important role in the country’s economy. Many horticultural crops are suitable for almost all agro-climatic zones of the country.
How does agriculture help in India?
Agriculture plays vital role in generating employment: In India at least two-thirds of the working population earn their living through agricultural works. In India other sectors have failed generate much of employment opportunity the growing working populations. 3.
Why is Indian agriculture a cost advantage?
Indian agriculture has a cost advantage in several agricultural commodities in the export sector because of low labour costs and self- sufficiency in input supply. Highlights on National Agriculture Policy, 2000. Productivity Level of Indian Agriculture: Factors and Measures.
What industries are dependent on agriculture?
Agriculture supplies raw materials to various agro-based industries like sugar, jute, cotton textile and vanaspati industries. Food processing industries are similarly dependent on agriculture. Therefore the development of these industries entirely is dependent on agriculture. 6. Market for industrial products:
Why does agriculture make provision for food for the ever increasing population?
Agriculture makes provision for food for the ever increasing population: Due to the excessive pressure of population labour surplus economies like India and rapid increase in the demand for food, food production increases at a fast rate.
Why is increasing rural purchasing power important?
Increase in rural purchasing power is very necessary for industrial development as two- thirds of Indian population live in villages. After green revolution the purchasing power of the large farmers increased due to their enhanced income and negligible tax burden.
How to extract surplus from agriculture?
To extract surplus from agriculture the following policies are taken: (i) Transfer of labour and capital from farm non-farm activities. (ii) Taxation of agriculture should be in such a way that the burden on agriculture is greater than the government services provided to agriculture.
What is the importance of agriculture in India?
Contribution of Agriculture in Indian Economy. Agriculture is the most important sector of Indian economy which employs more than half of the population in country. It is also known as the backbone of economy contributing about 16% of total GDP and 10% of total exports in India’s economy.
What is the agricultural activity of India?
Agricultural activities also comprise of breeding, poultry, raising livestock and aquaculture. It primarily focuses on providing food to peoples, raw materials to industry, …
What are the issues that affect the agricultural sector?
However, agricultural sector suffers from distinct issues such as absence of adequate irrigation facilities, overabundance of labourers, lack of proper storage, complex credit facilities and many more. All these issues act as a hurdle in overall development of agricultural sector of country.
What is the agricultural sector?
Agricultural sector is the significant source of making revenue for both central as well as state government. The government earns a substantial amount of income in the form of land revenue, irrigation charges and distinct taxes charged on the purchased of agricultural machinery by cultivators.
What is the agriculture industry?
Agriculture industry is at present a largest industry in developing nation like India. It promotes development of industrial sector by timely supplying them with the required amount of raw materials. Various other sector of nations like railways, roadways etc. generates a good amount of income via movement of agricultural products.
What is the main source of employment in India?
Agricultural activities serve as the key source of employment opportunities for an Indian economy. It employs around two-third of the Indian population which depends primarily upon agricultural activities for earning their livelihood. At present around 66% of our population is engaged in agriculture which is quite large as compared …
What is the primary source of food supply in India?
Agricultura l sector is only the primary source of food supply in our country. It serves the food need of large section of population where about 60% of household consumption is met by agricultural products. The overall production of food grains has increased to a great extent in India from past that has enabled it in overcoming the issues of food grain shortages.
What are the roles of agriculture in the Indian economy?
Some of the roles are: 1. Contribution to Gross Domestic Product 2. Employment Generation 3. Contribution to Industrial Development 4. Contribution to Foreign Trade 5. Role in Planning and Others.
How could agriculture provide the motive for industrial expansion?
Moreover, agriculture could provide the motive for industrial expansion by being a major market for industrial goods. In India, agriculture has all along been the major supplier of raw materials to the basic industries like jute and cotton textiles, sugar, vanaspati, and plantations.
What is the main support for India’s transport system?
Moreover, agriculture seems to provide the main support to the country’s transport system. Railways and roads secure the major portion of their business from the movement of agricultural commodities from producing to distant consuming centers. In fact, India’s internal trade largely consists of purchase and sale of agricultural commodities.
Why is agriculture declining?
However, in recent years, the importance of agriculture has declined mainly due to industrial diversification.
Why is agriculture important?
If it fails to develop at a suitable pace, it could prove to be a major constraint on the growth of industrial and other sectors. It is not only the supplier of an essential wage good, viz. food, but also of raw materials to industry. Moreover, agriculture could provide the motive for industrial expansion by being a major market for industrial goods.
What does sectoral composition mean in GDP?
In fact, the sectoral composition of GDP indicates the level of development of a country. The greater the contribution of agriculture and allied activities in GDP, the more economically backward a country is supposed to be. Thus, the preponderance of agriculture in India’s national production is a symptom of backwardness.
Is agriculture the backbone of the Indian economy?
Technological change will generate more surplus and, hence, more output in the industrial sector. Thus, there is no denying the fact that agriculture is the backbone of the Indian economy. At the same time, agriculture itself is characterised by low land and labour productivity.
What is the importance of Indian agriculture?
5. Commercial Importance: Indian Agriculture is playing a very important role both in the internal and external trade of the country. Agricultural products like tea, coffee, sugar, tobacco, spices, cashew-nuts etc. are the main items of our exports and constitute about 50 per cent of our total exports. Besides manufactured jute, cotton textiles and …
What is the role of agriculture in India?
Role of Agriculture for Industrial Development: Agriculture in India has been the major source of supply of raw materials to various important industries of our country. Cotton and jute textiles, sugar, vanaspati, edible oil plantation industries (viz. tea, coffee, rubber) and agro-based cottage industries are also regularly collecting their raw …
How much of India’s population is agriculture?
In India over two-thirds of our working population are engaged directly on agriculture and also similarly depend for their livelihood. According to an estimate, about 66 per cent of our working population is engaged in agriculture at present in comparison to that of 2 to 3 per cent in U.K. and U.S.A., 6 per cent in France …
What percentage of the national income was agriculture in 1950?
In 1950-51, agriculture and allied activities contributed about 59 per cent of the total national income. Although the share of agriculture has been declining gradually with the growth of other sectors but the share still remained very high as compared to that of the developed countries of the world. For example, the share of agriculture has …
Why is crop important?
A good crop always provides impetus towards a planned economic development of the country by creating a better business climate for the transport system , manufacturing industries , internal trade etc. A good crop also brings a good amount of finance to the Government for meeting its planned expenditure.
How does agriculture help the country?
Further, agriculture is helping the country in earning precious foreign exchange to meet the required import bill of the country. 6. Source of Government Revenue: Agriculture is one of the major sources of revenue to both the Central and State Governments of the country.
What is the main source of food supply?
3. Source of Food Supply: Agriculture is the only major source of food supply as it is providing regular supply of food to such a huge size of population of our country. It has been estimated that about 60 per cent of household consumption is met by agricultural products.
How much of India’s economy is agriculture?
India’s agriculture sector accounts for around 14% of the country’s $2.7 trillion economy and 42% of total employment, said Rajiv Biswas, chief economist in Asia Pacific for consultancy IHS Markit.
What is the agriculture sector in India?
The agriculture sector in India is both economically and politically important. The industry accounts for around 14% of the country’s $2.7 trillion economy and 42% of total employment, according to Rajiv Biswas, chief economist in Asia Pacific for consultancy IHS Markit. The overall Indian economy remains very vulnerable to the monsoon, …
What crops are planted during monsoon?
Kharif crops include rice, maize, sorghum and cotton, and are planted during the monsoon season. The agriculture sector in India is both economically and politically important.
Is rain important in India?
In recent years, rain has become even more important for India as dryer monsoons have caused a water supply crisis in the country to worsen. A government think tank, the National Institution for Transforming India, said in a report last year that 21 Indian cities — including New Delhi, Hyderabad and Chennai — could run out of groundwater by 2020.
Is India vulnerable to monsoons?
The overall Indian economy remains very vulnerable to the monsoon, since poor rainfall can significantly reduce agricultural production. Rajiv Biswas. economist at IHS Markit. About one-third of India’s manufacturing output — which makes up around 18% of the country’s gross domestic product — is linked to turning agricultural products into food, …