(Online Cours) CAPF Assistant Commandant: Indian Economy - Agriculture

Indian Economy

Agriculture

Importance of Agriculture in the Indian Economy

Employment: In India, agriculture is a significant source of employment. Sixty four per cent of working population in India is engaged in agricultural sector. Implying that agriculture sector. Implying that agriculture is the principal source of subsistence for the people in India.

Contribution to GDP: About one-fourth of India’s GDP depends on the primary sector of which agriculture is the core component. During the period of planning, contribution of agricultural sector to the GDP has been ranging between 18 to 51 per cent for different years though it has tended to decline overtime. This was 51 per cent in the year 1950-51, and 17.1 per cent during the year 2008-09. Reduced percentage contribution of agriculture does not imply reduction in farm production. It only implies relatively greater growth of non-farm production. In fact, contribution of agriculture up to 20 per cent of GDP not only points to the significance of agriculture, it also points to underdeveloped nature of Indian economy.

Wealth of the Nation: Large part of the country’s wealth belongs to agricultural sector. In terms of fixed assets, land occupies the highest rank in India. Besides, capital worth crore of rupees stays invested in major and minor irrigation projects.

Supply of Wage Goods: Production of wage goods is of central significance in crop farming. Wage goods are the necessities of life such as wheat, rice, pulses, maize, bajra, oilseeds, etc. Agricultural sector in India provides food to about 106 crore of people and fodder to about 38 crore of animals.

Industrial Raw Material: Agricultural supplies industrial raw material terms of cotton for textile industry, seeds for oil industry, sugarcane for sugar industry, and so on. In fact, growth of secondary sector (industrial sector) significantly depends on the growth of primary sector (the agricultural sector)

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