Why is Indian economy called an agro-based economy?
Answers
75 per cent of India's population depends on agriculture or agro-industries. Now, it has come to light that India's economic growth is not keeping with the expectations because its agricultural growth is lagging behind.
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Here it is...
Agriculture is the Primary sector of Economy. It makes direct use of natural resources. It is contrasted
with secondary sector( producing manufactured& other processed goods) & the Tertiary sector (producing
services). This sector is usually most important in less developed countries & typically less important in
industrial countries.Until the industrial revolution, Vast majority of human population labored in agriculture. Pre
Industrial agriculture was typically subsistent in which farmers raised most of their crop for their own
consumption instead of cash crop for trade. A remarkable shift in agriculture practices has occurred over the
past century in response of new technology & the development of world market. This also led to technological
improvements in agricultural techniques. Now, Agriculture with its allied sector is unquestionably the largest
livelihood provider in India, more so in the vast rural area.It also contributes a significant figure to GDP. Most
of the industries also depend on agriculture sector for their raw materials. The planned approach to development
has helped the country to reach a stage where the country is self sufficient in food grains and has a comfortable
buffer stock. These achievements have been possible mainly through the favourable policy framework. The
policy of Indian Agriculture was to achieve food security by providing incentive for growth alongwith equitable
access to food. As a result terrible famineshave become events of the past and the agricultural production does
not show large variation even in the event of adverse climatic condition.
Hence Indian economy is also called as agro based economy