The Importance of the Agricultural Sector in Indian Economy
- Contribution to National Income. Agriculture and its related activities have always held a significant share in our national income. …
- Source of Livelihood. Over two-thirds of the working population in India is engaged directly in the agricultural sector. …
- Source of Food Supply. …
- Role of Agriculture for Industrial Development. …
- Commercial Importance. …
What is the importance of Agriculture 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. Agriculture makes provision for food for the ever increasing population:
How does the Indian government earn revenue from agriculture?
However, the governments earn huge revenue from agriculture and its allied activities like cattle rearing, animal husbandry, poultry farming, fishing etc. Indian railway along with the state transport system also earn a handsome revenue as freight charges for agricultural products, both-semi finished and finished ones. 9. Need of labour force:
What is the share of Agriculture in GDP in India?
Agriculture has got a prime role in Indian economy. Though the share of agriculture in national income has come down, still it has a substantial share in GDP. The contributory share of agriculture in Gross Domestic Product was 55.4 percent in 1950-51, 52 percent in 1960-61 and is reduced to 18.5 percent only at present.
What are the important contribution of Agriculture to employment?
Important Contribution to Employment: Agriculture sector, at present, provides livelihood to 65 to 70 per cent of the total population. The sector provides employment to 58.4 per cent of country’s workforce and is the single largest private sector occupation. iii. Important Source of Industrial Development:
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.
Introduction of agriculture
India is a country of agriculture in particular. Importance of agriculture in India Agriculture is a very important occupation, for many Indian families. In India agriculture contributes, about 16% of total GDP and 10% of total exports. More than 60% of India’s global land area is urban.
8 Importance of agriculture in India
Although the industry has always played an important role in the Indian economy. Yet the contribution of agriculture to the development of the Indian economy is undeniable. The most important are: –
How important is agriculture to India?
As we know that India is an agricultural economy. Its 55% population is involved by agricultural activities and it contributes around 14% of the Indian GDP. Agriculture is the prime contributor in ensuring the food security to 1.26 billion population of the country.
How much did agriculture grow during the Green Revolution?
With the green revolution period from the mid-1960s to 1991, the agricultural sector grew at 3.2 per cent during 1965-1966 to 1975-1976, and at 3.1 per cent during 1976-1977 to 1991-1992. The policy package for this period was substantial and consisted of:
What are the two main types of agricultural policies?
Agricultural policies can be divided into supply side and demand side policies . The former include those relating to land reform and land use, development and diffusion of new technologies, public investment in irrigation and rural infrastructure and agricultural price supports. The demand side policies on the other hand, include state interventions in agricultural markets as well as operation of public distribution systems. Such policies also have macro effects in terms of their impact on government budgets.
What is the main source of long-term output growth?
Growth in the production of agricultural crops depends upon acreage and yield. Given the limitations in the expansion of acreage, the main source of long-term output growth is improvement in yields.
How much does agriculture contribute to the Indian economy?
In other words, agriculture and its related goods contribute about 38 per cent in total exports of country. In short, agriculture occupies a central place in the Indian economy.
What are the main sources of industrial development in India?
Important Source of Industrial Development: Various important industries in India find their raw material from agriculture sector –cotton and jute textile industries, sugar, vanaspati, etc. are directly dependent on agriculture.
What are the small scale industries that are dependent on agriculture?
Handlooms, spinning oil milling, rice thrashing, etc. are various small scale and cottage industries, which are dependent on agriculture sector for their raw material. This highlights the importance of agriculture in industrial development of the nation. iv. Importance in International Trade:
Is agriculture a part of the Indian economy?
In short, agriculture occupies a central place in the Indian economy. Its performance sets the pace of growth in the economy as a whole. It should, however, be noted that Indian agriculture is still in the state of backwardness, the per capita productivity in agriculture is less than in industry. Indian Economy.
Why is agriculture important to India?
It is because it provides employment to roughly half of India’s workforce and contributes to 17% of India’s GDP. Since independence, a lot of changes have been observed in the sector. Post-independence India was dependent on imports of agricultural produce.
What is the development of agriculture policy?
Development of agriculture policy must start with making the farmer the centerpiece of any policy action. With population increase, the small size of the landholdings has decreased further and it has led to problems pertaining to farm mechanization.
What is the knee jerk response to address challenges of the Indian agriculture?
This has to start from understanding the irrigation needs of the country. At present the Indian farmer often has to depend on the mercy of rain gods.
How does agriculture depend on monsoons?
First, the overwhelming dependence of agriculture on monsoons as rural infrastructure like irrigation is still absent in most parts of the country. Barely 35% of the total agricultural land is reliably irrigated. It has to do with the knee-jerk policy reactions to address challenges of the Indian agriculture. This has to start from understanding the irrigation needs of the country. At present the Indian farmer often has to depend on the mercy of rain gods. Understanding how rivers can be leveraged not just for agriculture but for goods’ movement as well as tourism is essential for an overarching perspective on rural development. Also, an integrated view of river systems and irrigation should be developed for all the stakeholders to benefit.
What percentage of the land in India is irrigated?
First, the overwhelming dependence of agriculture on monsoons as rural infrastructure like irrigation is still absent in most parts of the country. Barely 35% of the total agricultural land is reliably irrigated. It has to do with the knee-jerk policy reactions to address challenges of the Indian agriculture.
Is MSP good for farmers?
Finally, government procuring at Minimum Support Prices (MSP) at present can be beneficial to farmers however it also has a downside. The downside is that farmers cannot command the price they could in a free market as the market signal has already been decided by the government.
Is there wastage in India?
Wastage has had various official and non-official estimates with all agreeing that the wastage is considerable. It calls for more competition in the storage of foodgrains segment. Over the next few years as structural changes continue within the Indian economy, the share of agriculture is expected to go down.