Role of agriculture in Indian economy
Posted Date: 06-Oct-2010
Agriculture provides food to all the citizens of our country.It can be defined as art or science of production of crops and livestock on a farm.
AGRICULTURE IS THE BACKBONE OF THE INDIAN ECONOMY.DESPITE OUR MAJOR EMPHASIS ON THE INDUSTRIAL DEVELOPMENT, AGRICULTURE CONTINUES TO OCCUPY A PLACE OF PRIDE IN OUR ECONOMY.
Role of Agriculture
Share in national income
Agriculture is India's big economy.Although the share of agriculture in the total national income has been gradually decreasing on account of development of the secondary and tertiary sectors it's contribution continues to be significant. IN 1950, the share of agriculture was 57% but it is only 26% now. The more developed a country is the lesser is the contribution of agriculture.
Source of Employment
Today almost 60% of the population depends directly or indirectly on agriculture. The greater independence of working population on agriculture indicates the underdevelopment of non-agricultural activities in the country.
Importance in industrial development
Agriculture provides raw materials to pour leading industries such as cotton textiles and sugar industries.Not only this the workers in industries depend on agriculture for their food.Agriculture also provides the market for a variety of goods.
Importance in international trade
A number of the agricultural commodities like tea, coffee, spices and tobacco constitutes our main items of exports.These amount to almost 15% of our total exports.Hence agriculture provides foreign exchange which helps us to buy machines from abroad. It also maintains a balance of payments and make our country self-sufficient.
Development of tertiary sector
Tertiary sector provides helpful services to the industries and agriculture like banking, warehousing etc. Internal trade is mostly done in agricultural produce. For example, various means of transport get bulk of their business by the movement of agricultural goods.
Revenue to the government
State government get a major part of their revenue in terms of land revenue, irrigation charges, agricultural income tax etc.Central government also earns revenue from export duties on the agricultural production. Moreover our government can raise substantial revenue by imposing agricultural income tax.However this has not been possible due to some political reasons.
Our agriculture has brought fame to the country.India enjoys first position in the world as far as the production of tea and groundnuts are concerned.
agriculture plays a important role in the internal trade.It is because of the fact that 90% of of our population spends 60% of their income on the purchase of the items like food, tea, milk etc.
Prof. Gunar Myrdal has rightly remarked, "It is the agricultural sector that the battle for long term economic development of India will be won or lost."
IN fact the prosperity of agriculture is the prosperity of Indian economy.We should not build industries at the cost of agricultural land.
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Responses to "Role of agriculture in Indian economy"
Guest Author: Vishakha 11 Aug 2012
Importance of agriculture have been very clearly explained here.
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