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AGRICULTURE AND INDIAN ECONOMY

Agriculture is one of the main strongholds of the Indian Economy and the growth of agriculture and allied sector is still a critical factor in the overall performance of the economy

Agriculture including allied activities accounted for 13.9% of GDP

IMPORTANCE OF AGRICULTURE IN INDIAN ECONOMY

Share In National Income: The contribution from agriculture has been continuously falling from 55.1% in 1950-51 to 37.6% in 1981-82 and further to 13.9% in 2012-13. But agriculture still continues to be the main sector because it provides livelihood to a majority of the people

Largest Employment Providing Sector: In 1951, 69.5% of the working population was engaged in agriculture

Provision of Food Surplus to the Expanding Population: Heavy pressure of population in labour surplus economies and rapid increase in the demand for food.

Contribution of Capital formation:Rural sector can transfer labour and capital to the industrial sector which can be effectively used to increase the productivity in the latter

 

Providing Raw Material to industries: Agriculture provides raw materials to various industries of national importance.Sugar industry, Jute industry,Cotton textile, Vanaspati industry are examples of some such industries which depend on agriculture

Agriculture and Exports: Agriculture plays an important role in the Indian economy as an earner of foreign exchange through exports of agricultural commodities. All these commodities bring value to foreign exchange to pay for the increases imports of machinery and raw materials required in the non agricultural sector

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