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Know the Economy and Importance of Agriculture in India

By: Admin In: Agriculture Last Updated: 2016-02-08

Know the Economy and Importance of Agriculture in India With an amazing role in the economy of India, Agriculture offers a substantial share in GDP. India is majorly an agricultural country. Agriculture showers for over 16% of total GDP and 10% of total exports in India. Moreover, India flaunts for about 60% of the total land as arable thereby, making it the second largest country on counts of total arable land. Moreover, 55.4% was the contributory share of agriculture in GDP in the year 1950-51, 52% in the year 1960-61 and 18.5% at present. Not just that agriculture has contributed immensely to the national income of India, but there are a number of fields where agriculture has helped India progress. To know, start scrolling!

Contribution In The Employment Sector
Presently, agriculture offers 65% to 70% of the complete population. Being the single largest private sector occupation, agriculture sector offers 58.4% of the entire country’s workforce. Plus, reports also tell that in India, the main source of employment is agriculture itself offering opportunities in the construction of drainage system, irrigation projects, and other allied activities. In addition to this, more than 56% of the total workforce of India was indulged in agriculture in the time span of 2004-05 and complete livelihood of theirs relies on this.

Contribution In The Industrial Development
Also, agriculture has contributed to the development of the industrial sector as well. There are a number of significant industries in the country that discover their raw material from agriculture sectors such as sugar, jute textile industries, and Vanaspati to name a few are dependent directly on agriculture. Plus, spinning oil milling, handlooms, and rice thrashing to name a few are also relying on agriculture for their raw material.

Contribution In The International Trade
There is no denying that India’s foreign trade is intensely related to the agricultural sector. Most of all, 14.7% is the total export earnings that agriculture sector of India accounts. Apart from this, the goods that are made using raw materials of agriculture contribute for over 20% of the Indian exports. In plain words, agriculture and its related goods have donated for about 38% in the total exports of the nation.

Contribution In Government Budget
Not just today, but right from the First Five Year Plan, agriculture is a sector that is regarded as the prime revenue collecting sector for the both central as well as the state budgets. It is noted that government of India earns amazing revenue from agriculture as well as its allied activities such as animal husbandry, cattle rearing, fishing, poultry farming etc. Moreover, Indian railway, as well as the state transport system also, yields handsome revenue as freight charges for agricultural finished and semi-finished products.

All-in-all, the agricultural sector plays an important role in the Indian economy and has an immense contribution to the overall development of the country. Right from the steady increase in the area to a considerable growth in the food crops to the constant increase in the yield per hectare, agriculture is reigning undoubtedly.

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