Explain the importance of agricultural sector for the Indian economy.
Or
Why is agriculture sector deemed to be the backbone of Indian economy?
Explain the importance of agricultural sector for the Indian economy.
Or
Why is agriculture sector deemed to be the backbone of Indian economy?
The importance of agriculture in the Indian economy is evident from the following points:
(i) Contribution to GDP: Agriculture contributes about 14 % to India's GDP. This share was as high as 51% in 1950 - 5, but has been gradually declining with progress and development of the country.
(ii) Supply of wage goods: Wage goods such as wheat, rice, maize, pulses, oil, sugarcane, etc are necessary goods. Agricultural sector in India provides wage goods to 121 crore people and 38 crore animals.
(iii) Employment In India: Agriculture is the principal source of emplyment. Over 50% of the working population is either directly or indirectly dependent on agriculture for means of their livelihood.
(iv) Supplier of raw material for industries: Agriculture provides cotton for the textile industries, sugarcane for sugar industry various seeds for oil industy and jute for gunnysack industry. The growth of the secondary sector is dependent on the primary sector.
(v) Contribution to international trade: Agriculture is the major contributor to external trade. India exports tea, jute, cashew nuts, tobacco, coffee, spices, etc on a large scale.
(vi) Instruemntal in the growth of transport industry: Both railways and roadways are the bulk carriers of agricultural products in India. Thus, the agricultural sector is a major consumer of the transport services of our country.
(vii) Contribution to wealth of nation: In terms of fixed assets, land occupies the highest rank in India, in addition to it, a large amount is invested in irrigation projects. Thus, the agricultural sector owns a large part of the nation's wealth.
So, we can conclude that agriculture is not only an important component of the primary sector, but it also helps to sustain and develop both secondary as well as tertiary sectors. Thus, it is the backbone of the economy.
The importance of agriculture in the Indian economy is evident from the following points:
(i) Contribution to GDP: Agriculture contributes about 14 % to India's GDP. This share was as high as 51% in 1950 - 5, but has been gradually declining with progress and development of the country.
(ii) Supply of wage goods: Wage goods such as wheat, rice, maize, pulses, oil, sugarcane, etc are necessary goods. Agricultural sector in India provides wage goods to 121 crore people and 38 crore animals.
(iii) Employment In India: Agriculture is the principal source of emplyment. Over 50% of the working population is either directly or indirectly dependent on agriculture for means of their livelihood.
(iv) Supplier of raw material for industries: Agriculture provides cotton for the textile industries, sugarcane for sugar industry various seeds for oil industy and jute for gunnysack industry. The growth of the secondary sector is dependent on the primary sector.
(v) Contribution to international trade: Agriculture is the major contributor to external trade. India exports tea, jute, cashew nuts, tobacco, coffee, spices, etc on a large scale.
(vi) Instruemntal in the growth of transport industry: Both railways and roadways are the bulk carriers of agricultural products in India. Thus, the agricultural sector is a major consumer of the transport services of our country.
(vii) Contribution to wealth of nation: In terms of fixed assets, land occupies the highest rank in India, in addition to it, a large amount is invested in irrigation projects. Thus, the agricultural sector owns a large part of the nation's wealth.
So, we can conclude that agriculture is not only an important component of the primary sector, but it also helps to sustain and develop both secondary as well as tertiary sectors. Thus, it is the backbone of the economy.
