Role of agriculture in Indian Economic Development-interrelationship between agriculture, Industry and service sectors
Role Of Agriculture In Indian Economic Development
Contribution to NATIONAL INCOME
From the very beginning, agriculture is contributing a major portion to our national income. 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 declined to 54 per cent in 1960-61, 48 per cent in 1970-71, 40 per cent in 1980-81 and then to 18.0 per cent in 2008-09, whereas in U.K. and U.S.A. agriculture contributes only 3 per cent to the national income of these countries.
Source of Livelihood
In India 50% 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 and 7 per cent in Australia. Thus the EMPLOYMENT pattern of our country is very much common to other under-developed countries of the world.
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.
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 materials directly from agriculture. About 50 per cent of income generated in the manufacturing sector comes from all these agro-based industries in India. Moreover, agriculture can provide a market for industrial products as increase in the level of agricultural income may lead to expansion of market for industrial products.
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 sugar also contribute another 20 per cent of the total exports of the country. Thus nearly 70 per cent of India’s exports are originated from agricultural sector. Further, agriculture is helping the country in earning precious Foreign Exchange to meet the required import bill of the country.
Role of Agriculture in Economic Planning
The prospect of Planning in India also depends much on agricultural sector. 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. Similarly, a bad crop lead to a total depression in business of the country, which ultimately lead to a failure of economic planning. Thus the agricultural sector is playing a very important role in a country like India and the prosperity of the Indian economy still largely depends on agricultural sector. Thus from the foregoing analysis it is observed that agricultural development is the basic precondition of sectoral diversification and development of the economy.
Source of Government Revenue
Agriculture is one of the major sources of revenue to both the Central and State Governments of the country. The Government is getting a substantial income from rising land revenue. Some other sectors like railway, roadways are also deriving a good part of their income from the movement of agricultural goods.
Interrelationship between agriculture, industry and service sectors
Industry is not the substitute of agriculture, rather they are complementary to one another. Both these sectors are so attached with each other that it is not possible to increase the growth of one sector sector without the improvement of the other sector. If agriculture is considered as the ‘heart’ of the country, then obviously industry must be consider as the ‘brain’.
Impact of Agriculture on Industry
- It regularly supplies raw materials like sugarcane , jute cotton, oilseeds, tea, spices, wheat; paddy etc. to the consumer goods industries.
- It supplies Cereals, vegetables and other food items to the industrial labourer and fodders for the domestic animals in the Dairy industries on a regular basis.
- Farmer-households used to save their Money in the bank and other financial institutions which ultimately is used by the industry owners in the form of Investment.
- Both for consumer and Capital Goods Industries agriculture sector gives a ready market for the finished products.
Impact of Industry on Agriculture
- It regularly supplies scientific tools and equipment’s like tractors, harvesters, pump-sets chemical Fertilizers etc. to agriculture increase the per hectare production.
- To increase the market for finished agricultural goods some infrastructural development like roads, railway, storage etc. are very essential. In this connection industry plays a vital role.
- Industries provide huge employment opportunities and therefore help to absorb all the surplus labour in our agriculture. This lea to more industrial development.
- Agricultural sector itself is a huge market for the different finished products of Industries. Farmers buy several industrial products like bi-cycle, torch, radio etc. All these flourishment of industries.
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Agriculture is the backbone of the Indian economy. It is the largest sector in the Indian economy, accounting for about 15% of the GDP and employing about 50% of the workforce. Agriculture is also a major source of food and raw materials for the Industrial Sector.
The contribution of agriculture to the Indian economy has been declining in recent years. This is due to a number of factors, including the growth of the service sector, the decline in the share of agriculture in the workforce, and the increasing use of imported food and raw materials. However, agriculture still remains a vital part of the Indian economy and plays a key role in the country’s economic development.
Agriculture is a major source of employment in India. About 50% of the Indian workforce is employed in agriculture. This is a significant number, and it shows the importance of agriculture in the Indian economy. Agriculture provides employment to people in rural areas, and it helps to reduce POVERTY in these areas.
Agriculture is also a major source of food for the Indian people. India is a large country with a large population. The country needs to produce enough food to feed its people. Agriculture is the main source of food in India. It produces a variety of crops, including rice, wheat, pulses, and vegetables.
Agriculture is also a major source of raw materials for the industrial sector. The industrial sector uses a variety of raw materials, including cotton, sugarcane, and oilseeds. These raw materials are produced by agriculture. Agriculture helps to support the industrial sector, and it contributes to the country’s economic development.
The government of India plays a key role in promoting agricultural development. The government provides subsidies to farmers, it invests in Irrigation and agricultural research, and it provides support to farmers’ cooperatives. The government also provides support to the agricultural Marketing system. The government’s efforts have helped to increase agricultural productivity and to reduce poverty in rural areas.
However, Indian agriculture faces a number of challenges. These challenges include the declining share of agriculture in the GDP, the increasing use of imported food and raw materials, the low productivity of agriculture, and the lack of Infrastructure-2/”>INFRASTRUCTURE-in-rural-areas/”>Infrastructure in Rural Areas. The government needs to address these challenges in order to promote agricultural development and to ensure Food Security for the Indian people.
The following are some of the challenges facing Indian agriculture:
- Declining share of agriculture in the GDP: The share of agriculture in the GDP has been declining in recent years. This is due to a number of factors, including the growth of the service sector, the decline in the share of agriculture in the workforce, and the increasing use of imported food and raw materials.
- Increasing use of imported food and raw materials: India is a large country with a large population. The country needs to produce enough food to feed its people. However, India is increasingly importing food and raw materials. This is due to a number of factors, including the low productivity of agriculture, the lack of infrastructure in rural areas, and the government’s policies.
- Low productivity of agriculture: The productivity of agriculture in India is low. This is due to a number of factors, including the use of outdated technologies, the lack of irrigation facilities, and the lack of access to credit.
- Lack of infrastructure in rural areas: The infrastructure in rural areas is poor. This includes the lack of roads, electricity, and water. The lack of infrastructure makes it difficult for farmers to produce food and to market their products.
The government of India needs to address these challenges in order to promote agricultural development and to ensure food security for the Indian people. The government needs to invest in agriculture, it needs to improve the infrastructure in rural areas, and it needs to provide support to farmers.
Role of agriculture in Indian economic development
Agriculture is the backbone of the Indian economy. It employs more than half of the country’s workforce and contributes about 15% to the GDP. Agriculture is also a major source of food and raw materials for the industrial sector.
The role of agriculture in Indian economic development can be summarized as follows:
- Agriculture provides employment to a large number of people.
- Agriculture is a major source of food and raw materials for the industrial sector.
- Agriculture contributes to the GDP.
- Agriculture helps to reduce poverty.
- Agriculture helps to promote rural development.
Interrelationship between agriculture, industry and service sectors
Agriculture, industry and service sectors are interlinked and interdependent. Agriculture provides raw materials to the industrial sector, which in turn provides inputs to the agricultural sector. The service sector provides support to both agriculture and industry.
The interrelationship between agriculture, industry and service sectors can be seen in the following ways:
- Agriculture provides raw materials to the industrial sector. For example, cotton is used to produce textiles, sugarcane is used to produce sugar, and wheat is used to produce flour.
- Industry provides inputs to the agricultural sector. For example, tractors are used to plough the land, fertilizers are used to improve crop yields, and pesticides are used to control pests.
- The service sector provides support to both agriculture and industry. For example, banks provide loans to farmers, transport companies transport goods to and from farms, and marketing companies help to sell agricultural products.
The interrelationship between agriculture, industry and service sectors is essential for the economic development of a country. By working together, these sectors can create jobs, generate income, and improve the standard of living of the people.
1. Which of the following is not a major sector of the Indian economy?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
2. Which of the following is the largest sector of the Indian economy?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
3. Which of the following is the fastest growing sector of the Indian economy?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
4. Which of the following is the main source of employment in India?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
5. Which of the following is the main source of foreign exchange earnings for India?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
6. Which of the following is the main source of government revenue in India?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
7. Which of the following is the main source of food for India?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
8. Which of the following is the main source of raw materials for Indian industries?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
9. Which of the following is the main source of labor for Indian industries?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism
10. Which of the following is the main market for Indian products?
(A) Agriculture
(B) Industry
(C) Service
(D) Tourism