Role of Agriculture in the Indian Economy
Role of Agriculture in the Indian Economy

Role of Agriculture in the Indian Economy

Significant contribution to the GDP of the nation

The agricultural sector has become an important sector for the contribution of the GDP of India. During the period of 1951 to 1961 agriculture contributed more than 50% to the growth of GDP but, it has reduced to 12 to 17% from 2010 to 2020. It indicates that non-agriculture sectors have grown with a huge development. Non agriculture sector specifically the service sector has contributed largely to the GDP growth of India.

However, the current contribution of agriculture to the growth of GDP is less it has become a critical factor in the nation. Has the agriculture sector in Hall in providing input to the industries or manufacturing and all the intermediate Business players run by it.

The chemical industries, textile industries, sugar industry, tea industry, and many other industries require input from agriculture and these industries contribute largely to the growth of GDP.. their output is produced only when the required quantity of input is provided by the agriculture sector. Hence agricultural sector plays industries are manufacturing

The agricultural sector plays a very important role in providing input to industries specifically industries such as sugar tea textile paper and many food industries. Not only the food industries but also many other industries such as chemical industries cottage industries and all the agri-based industries need the input provided by agriculture.

Examples

1 sugar industry requires the input material is sugar cane which comes from agriculture

2 deep deep-production companies required tea leaves which also come from the agricultural sector

3 All the food production industries acquired input material that comes from agriculture such as hotel industries require vegetables fruits and all the agricultural produce required for their food,

4 Many chemical industries require agricultural materials either agricultural produce or agricultural waste as their inputs are required for the production of different varieties of chemicals.

A significant share in foreign trade

After independence from the year 1950 to 1960, there was a large contribution of Agriculture in foreign trade as the nonagricultural products were not contributing to exporting. But now we are exporting many more products than the few which were Exported such as textiles jute and tea. Commodities like cashew kernels to Paco Coffee Sugar Vegetable oils also play important role in agriculture export. It contributed near about 70% during independence. In 2010 and 11 the agricultural exports contributed to 10% of national exports.

If we consider the imports and exports of agricultural products we come to know the country’s imports is less as compared to the other products due to which we can consider this economy is self-sufficient in agricultural products. It has also been considered that India is sufficient in the production of agri-based products and it requires to import only when we are in shortage.

Supplier of Food and fodder

Agricultural sectors fulfill the entire need of food in a country. Agriculture provides the required inputs and food produce to produce the food products. it plays an important role in the living standard of people. If agriculture produces produced in the required quantity it can be at so later price which can be affordable. If agriculture produces produced In this quantity, the shortages of commodities tend to increase the prices which influences the living cost of the people.

Agricultural sectors also provide fodder(food for animals)  Good lifestyle for a country which includes buffaloes cow ship poultry kettle Etc. As livestock also plays an important role in producing different products such as milk, chicken other products, It is necessary to maintain the required production capacity of the producers from the livestock. Providing the required fodder(foods for animals) can help to increase the production capacity of the products from livestock.

Providing employment

Since the independence period, the agriculture sector has been provided employment to many people. At the time of Independence Need about more than 70% of the population was involved in agriculture or allied activities due to which employment also generated that. After the independence other sectors such as industry and services have grown huge and contributed largely to the GDP. If we talk about the agricultural sector even now more than 40% of the population is involved in agriculture and this is the reason for providing use employment through agriculture and allied activities.

Besides, the large number of people involved in activities such as storage of agricultural produce, procurement of agricultural produce, trade and transport of agricultural products, marketing and export of all the agricultural producers. This involvement in various activities is responsible for creating employment in the area of Agriculture and Allied activities.

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