Describe the contribution of agriculture in the national economy
Answers
Agricultural sector plays a strategic role in the process of economic development of a country.
It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance.
In other words, where per capita real income is low, emphasis is being laid on agriculture and other primary industries.
“Increase in agricultural production and the rise in the per-capita income of the rural community, together with the industrialisation and urbanisation, lead to an increased demand in industrial production”.
The agriculture sector is the backbone of an economy which provides the basic ingredients to mankind and now raw material for industrialisation.
Therefore, the role of agriculture for the development of an economy may be stated as below:
1. Contribution to National Income
2. Source of Food Supply.