Importance of Agriculture in the Indian Economy!
Agriculture is not only important but it provides a base for development.In India, the agricultural sector occupies a vital position in the overall economy of the country:
- Share of Agriculture in National Income:
- Important Contribution to Employment:
- Important Source of Industrial Development:
- Importance in International Trade:
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 % in 1950-51, 52 % in 1960-61 and is reduced to 18.5 % only at present.
Agriculture sector, at present, provides livelihood to 65 to 70 % of the total population. The sector provides employment to 58.4 % of country’s workforce and is the single largest private sector occupation.
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. 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.
India’s foreign trade is deeply associated with agriculture sector. Agriculture accounts for about 14.7 % of the total export earnings. Besides, goods made with the raw material of agriculture sector also contribute about 20 % in Indian exports. 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. Its performance sets the pace of growth in the economy as a whole.
Nevertheless I see- in a decade when the boundaries between villages and cities fade away Indian Agriculture will be a hot sector.
