How does agriculture help in economic development

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Agriculture makes its contribution to economic development in following ways: By providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the marketable surplus, by providing investable surplus in the form of savings and taxes to be invested in non-agricultural sector, earning valuable foreign exchange through the export of agricultural products, and by providing employment to a vast army of uneducated, backward and unskilled labour.

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

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How does agriculture contribute to economic development?

Contribution of Agriculture to Economic Development

  1. Factor Contribution: Development of agriculture releases some resources for being transferred to the other sectors. …
  2. Product Contribution: The product contribution of agriculture towards an overall economic development takes two forms. …
  3. Market Contribution:

How does agriculture affect the US economy?

agriculture therefore spurs the growth of entire economies and stimulates demand for U.S. exports. Exports and Jobs In 2018, U.S. agricultural exports totaled $140 billion, with developing countries accounting for $90 billion, or nearly two-thirds of total agricultural exports.

Does agriculture contribute to economic growth?

Now, as we can see that agriculture has a big contribution, its growth will stimulate the overall growth of the economy. Now, this has been argued widely that a country prospers when its secondary or industry sector outnumbers other sectors. Most developed nations has witnessed a massive industrial revolution in its history.

How can agriculture help the economy?

Agriculture makes a huge contribution to the economic development in the following ways: It provides raw material and food to the non-agricultural sectors. It creates demand for goods that are produced in non-agricultural sectors. Rural community acquires purchasing power by selling the surplus. It also helps to earn valuable foreign exchange …

Why is agriculture important in economic development?

How can agriculture be used to help industrial growth?

What happens if agricultural productivity does not rise?

How does agriculture help in eradicating poverty?

What is the market contribution of agriculture?

Why is agriculture taxed in Japan?

Why is there stagnation in the industrial sector?

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How agriculture contribute to the economic development?

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.


Why is agriculture so important to the economy?

Agriculture and its related industries (things like food sales and other industries that wouldn’t exist or would be much smaller without agriculture) contribute $1.05 trillion to U.S. GDP, according to the latest data. That puts agriculture’s contribution to the overall economy at about 6 percent.


How agriculture affects the economy of the country?

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 role of agriculture in economic development of India?

Agriculture is an important sector of Indian economy as it contributes about 17% to the total GDP and provides employment to over 60% of the population. Indian agriculture has registered impressive growth over last few decades.


What is the role of agriculture in the economy?

Agricultural sector plays a strategic role in the process of economic development of a country. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. ADVERTISEMENTS: In other words, where per capita real income is …


Why is agriculture important?

Agriculture is the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed. Due to heavy pressure of population in underdeveloped and developing countries and its rapid increase, the demand for food is increasing at a fast rate.


How does rural economy affect social welfare?

The rising agricultural surplus caused by increasing agricultural production and productivity tends to improve social welfare, particularly in rural areas. The living standard of rural masses rises and they start consuming nutritious diet including eggs, milk, ghee and fruits. They lead a comfortable life having all modern amenities—a better house, motor-cycle, radio, television and use of better clothes.


What is agriculture in India?

Agriculture provides employment opportunities for rural people on a large scale in underdeveloped and developing countries. It is an important source of livelihood. Generally, landless workers and marginal farmers are engaged in non-agricultural jobs like handicrafts, furniture, textiles, leather, metal work, processing industries, and in other service sectors. These rural units fulfill merely local demands. In India about 70.6% of total labour force depends upon agriculture.


What happens to agricultural production during a depression?

During depression, industrial production can be stopped or reduced but agricultural production continues as it produces basic necessities of life. Thus it continues to create effective demand even during adverse conditions of the economy.


What will happen to agriculture as a result of industrialization?

As a result of agricultural progress, there will be extension of market for industrial products. Increase in agricultural productivity leads to increase in the income of rural population which is turn leads to more demand for industrial products, thus development of industrial sector.


Why is agricultural advancement important?

Agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level.


Why is agriculture important in economic development?

The role of agriculture in economic development is crucial because a majority of the population of developing countries make their living from agriculture. We explain below the role of agriculture in detail and point out in what ways agriculture can …


How can agriculture be used to help industrial growth?

Agriculture can also be a major source of saving or capital for industrial growth of developing countries. Even, in poor developing countries, as income from agriculture is unequally distributed, rural people with high incomes can invest their savings for industrial development. In Britain at the time of industrial revolution rich landlords voluntarily invested some of their savings in growing industries. Besides, small farmers can deposit their small savings in banks operating in the rural areas and then these banks can provide loans to the industrialists for investment purposes.


What happens if agricultural productivity does not rise?

If agricultural productivity does not rise the marketable surplus for industrial growth has been obtained by some countries through coercion as was the case in Japan at the time of Meiji Restoration (1869) when through compulsory taxation marketable surplus was extracted from the farmers.


How does agriculture help in eradicating poverty?

In any strategy of eradication of poverty agricultural growth plays an important role. Agricultural growth raises the productivities and incomes of small and marginal farmers, and raises and employment and wages of agricultural workers. With this, it helps to reduce poverty and disguised unemployment.


What is the market contribution of agriculture?

The market contribution of agriculture means the demand for industrial products. In the earlier stages of development when urban sector is very small and markets for exports have not yet been found, agricultural sector of developing countries is a major source of demand or market for industrial products.


Why is agriculture taxed in Japan?

In Japan a tax on agriculture was levied to mobilise savings for capital accumulation. In India land revenue from agriculture has been a negligible source of State income. A committee headed by late Dr K.N. Raj recommended ‘Agricultural Holding Tax’ to mobilise savings from agriculture for economic development.


Why is there stagnation in the industrial sector?

In India it has been found that whenever there is sluggish or negative agricultural growth, there is stagnation in the industrial sector due to lack of demand for the industrial products.

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