Importance of agriculture in indian economy and its sectoral relationship

Relationship between Agriculture and Industry

importance of agriculture in indian economy and its sectoral relationship

overall economy. The importance of farm business in planning represented by and status of agriculture sector in economy and in human life is essential for . India. It was based on relationship between land holder and government. The. Agriculture is an important part of India's economy and at present it is among the top two farm producers in the world. This sector provides approximately The following table presents the twenty most important agricultural products in India, Table 1 Agriculture in India, largest crops by Economic value .. There is too little connection between research and extension, or between these services.

In India at least two-thirds of the working population earn their living through agricultural works. In India other sectors have failed generate much of employment opportunity the growing working populations.

importance of agriculture in indian economy and its sectoral relationship

Agriculture makes provision for food for the ever increasing population: Due to the excessive pressure of population labour surplus economies like India and rapid increase in the demand for food, food production increases at a fast rate.

The existing levels of food consumption in these countries are very low and with a little increase in the capita income, the demand for food rise steeply in other words it can be stated that the income elasticity of demand for food is very high in developing countries.

importance of agriculture in indian economy and its sectoral relationship

Therefore, unless agriculture is able to continuously increase it marketed surplus of food grains, a crisis is like to emerge. Many developing countries are passing through this phase and in a bid to ma the increasing food requirements agriculture has been developed.

  • Agriculture Role on Indian Economy
  • Importance of Agriculture in Indian Economy
  • Relationship between Agriculture and Industry

Contribution to capital formation: There is general agreement on the necessity capital formation. Since agriculture happens be the largest industry in developing country like India, it can and must play an important role in pushing up the rate of capital formation.

Importance of Agriculture in Indian Economy

If it fails to do so, the whole process economic development will suffer a setback. To extract surplus from agriculture the following policies are taken: Therefore, generation of surplus from agriculture will ultimately depend on increasing the agricultural productivity considerably.

Supply of raw material to agro-based industries: Agriculture supplies raw materials to various agro-based industries like sugar, jute, cotton textile and vanaspati industries. Food processing industries are similarly dependent on agriculture.

Therefore the development of these industries entirely is dependent on agriculture. Market for industrial products: Increase in rural purchasing power is very necessary for industrial development as two- thirds of Indian population live in villages.

importance of agriculture in indian economy and its sectoral relationship

Abstract Introduction Agriculture is the most important sector of Indian Economy. India has many areas to choose for business such as dairy, meat, poultry, fisheries and food grains etc. India has emerged as the second largest producer of fruits and vegetables in the world [ 1 ]. According to the data provided by Department of Economics and Statics DES the production of food grains for the year is million tons which is increased when compared to million tons.

importance of agriculture in indian economy and its sectoral relationship

This is a good symptom for the Indian economy from the agriculture sector. India remains among main three as far as production of different agricultural things like paddy, wheat, pulses, groundnut, rapeseeds, natural products, vegetables, sugarcane, tea, jute, cotton, tobacco leaves and so on. On the other hand, on advertising front, Indian agribusiness is as yet confronting the issues, for example, low level of business sector reconciliation and integration, availability of dependable and convenient information needed by farmers on different issues in farming [ 2 ].

This structures the main source of income.

Role of Agriculture in Indian Economy (7 Roles)

The commitment of agribusiness in the national income in India is all the more, subsequently, it is said that agriculture in India is a backbone for Indian Economy. The aggregate Share of Agriculture and Allied Sectors, Including agribusiness, domesticated animals, and ranger service and fishery sub segments as far as rate of GDP is Agricultural exports constitute a fifth of the total exports of the country.

In perspective of the overwhelming position of the Agricultural Sector, gathering and support of Agricultural Statistics expect incredible significance. According to the fourth Advance Estimates of Production of food grains foraggregate food grain production is assessed to be