(The Gist of Kurukshetra) ROLE OF ALLIED SECTOR IN RURAL DEVELOPMENT

[APRIL-2018]

ROLE OF ALLIED SECTOR IN RURAL DEVELOPMENT

Agriculture and allied sector including horticulture, floriculture, sericulture, livestock, beekeeping, forestry & logging, fishery, mining & quarrying etc. play a strategic role in the process of economic development of developing countries like India. During the process of economic development, many structural changes take place in the form of declining share of agriculture & allied sector in national income, output and employment. Indian economy has also witnessed these structural changes particularly after independence. The contribution of primary sector to GDP has steadily declined from 53.71 per cent in 1951 to 17.46 per cent in 2018. However, the declining share of this sector does not undermine its significance in employment generation, foreign exchange earnings and providing food security to the increasing population of the country.
Agriculture is of so much importance in the Indian economy that any positive or negative change in this sector exerts a significant effect on the entire economy. The large scale industries of the country like sugar, tea, jute, textile (cotton, woolen & silk), paper and food processing etc. directly depend upon agriculture and allied sector for the supply of raw material. On the other hand, agriculture also draws inputs like chemical fertilizers, pesticides, power, agricultural machinery (tractors, harvesters, combines, pump sets), tools and implements from industry. This interdependence between agriculture and industry becomes strengthened through the appropriation and generation of various production and demand linkages in these two sectors. Demand for one sector’s product pulls demand for another sector in an upward direction, which results in an increase in trade. Thus agriculture, industry and trade are mutually supporting and complementary to one another.

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