Explain the importance of Agriculture in Indian economy.

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Introduction:

Indian agriculture plays a very important role in the country’s economy and society, serving as the backbone of rural livelihoods and a significant and great contributor to national GDP. It is one of the oldest and most diverse agricultural systems in the world, deeply rooted in India’s history, culture, and economy. Agriculture in India is not only vital for feeding a population of over billions but also forms the primary source of income for a large portion of the population, especially in rural areas. The importance of agriculture in India are:

Importance of agriculture in India.

  1. Source of food for our people: Indian agriculture is a source of food for millions of people. It supplies cereals, pulses, sugar and edible oil etc. Imports  of food grains consists of 5% of the total food requirement of the country India is now self sufficient in the production of food grain.
  2. Largest employment providing sector: Nearly 60% of the working population is engaged in agriculture. When we take into account the people who are indirectly dependent upon agriculture the ratio raises to more than even 3/4.
  3. Major component of national income: At present nearly 20% of the total annual national income comes from agriculture when taken independently, no other sector contributes so much to the National income of our country. the share of agriculture in India’s national income has been decreasing steadily over the year from 56% in 1950- 51 when compare with the share of agriculture in the national income in advance countries agriculture in India contributes a very large amount to her national income.
  4. Supplies raw material to industry: Agriculture in India is considered to be the mother of all industries. It supplies essential raw materials to many of our industries. There are certain industries like cotton, textile, jute and plantation will depend directly on agriculture for the development of few other industries like handloom, oil crushing, rice husking etc. depends on agriculture indirectly. Agriculture also buys industrial goods and thus encourages industries.
  5. Importance in international trade: Indian agriculture played an important role in the export for a long period of time. In the past many of our exportable commodities consists of agriculture commodities like tea, coffee sugar, oilseeds, tobacco, cotton, jute and spices. There was a time when 50% of our export consisted of agriculture commodities with industrial development agricultural commodities at present account for 25% of India’s export trade.
  6. Source of government revenue:  Agriculture is the main source of revenue for the government especially for the state government not only does the government get substantial income from land revenue. India is a leading global exporter of several agricultural products such as rice, tea, spices, cotton, and fruits. Agricultural exports contribute significantly to foreign exchange earnings, helping to balance the trade deficit.
  7. Agriculture and capital formation: Agriculture sector is the primary source of domestic savings and hence capital formation of the economy since independence large investment both public and private has been made in agriculture.
  8. Social and political importance: Agriculture is study and self reliant people they are the backbone of society and work for social and political stability. Agriculture is deeply ingrained in Indian culture and traditions. Many festivals like Pongal, Makar Sankranti, Baisakhi, and Onam are based around agricultural seasons, harvests, and cycles. Farming is not just an occupation but a way of life for millions of Indians. In rural India, agriculture forms the basis of the social and economic structure. Land ownership is often linked to social status, and farming communities play a significant role in rural governance and social norms.

also read: explain the failures of planning in India.

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