Question

Q 15 what is the importance of agriculture in indian economy?

Answer 1

The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India

Answer 2

Agriculture plays a critical role in the entire life of a global economy. Agriculture is the backbone of the economic system of a any country. In addition to providing food and raw material, agriculture also provides employment opportunities to very large percentage of the population. the economic importance of agriculture can be given as follows:

Source of Livelihood-

The main source livelihood of many people is agriculture. Approximately 70 % of the people directly rely on agriculture as a mean of living.

Contribution to National revenue-

Agriculture is the main source of national income for most developing countries.

Significance to the international trade-

Agricultural products like sugar, tea, rice, spices, tobacco, coffee etc. constitute the major items of exports of countries that rely on agriculture. This helps to reduce countries unfavorable balance of payments as well as saving foreign exchange. This amount may be well used to import other essential inputs, machinery, raw-material, and other infrastructure that is helpful for the support of country’s economic development.

Marketable Surplus-

The growth of agricultural sector contributes to marketable surplus. Many people engage in manufacturing, mining as well as other non- agricultural sector as the nation develops. All these individuals rely on food production that they might meet from the nation’s marketable surplus. As agricultural sector development takes place, production increases and this leads to expansion of marketable surplus. This may be exported to other nations.

Foreign Exchange Resources-

The nation’s export trade depends largely on agricultural sector. For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18 % of the entire value of exports of a country. This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange.

Great Employment Opportunities-

Construction of irrigation schemes, drainage system as well as other suchactivities in the agricultural sector is important as it provides larger employmentopportunities. Agriculture sector provides more employment opportunities to the labor force that reduce the high rate of unemployment in developing countries caused by the fast growing population.

Economic Development-

Since agriculture employs many people it contributes to economic development. As a result, the national income level as well as people’s standard of living is improved. The fast rate of development in agriculture sector offers progressive outlook as well as increased motivation for development. Hence, it aids to create good atmosphere for overall economic development of a country. Therefore, economic development relies on the agricultural growth rate.

Food Security-

A stable agricultural sector ensures a nation of food security. The main

requirement of any country is food security. Food security prevents

malnourishment that has traditionally been believed to be one of the major problems faced by the developing countries.