Role of agriculture in economic development in india

by Indrani Bhattacharya mbe (final)

Indian Agriculture

Agriculture Sector is changing the socio-economic environments of the population due to liberalization and globalization About 75% people are living in rural areas and are still dependent on Agriculture. About 43% of Indias geographical area is used for agricultural activity Agriculture continues to play a major role in Indian Economy

Role of agriculture in economic development

Share in national income Largest employment providing sector Provision of food surplus to the expanding population Contribution to capital formation Providing raw material to industries Market for industrial products Importance in international trade Importance of agricultural products in the consumption basket

Share in national income

Agriculture contributed 2/3rd of the national income in India .from 55.1%in 1950-51,the share of agriculture in gross domestic product declined steadily to 17.0% in 2011-2012

Largest employment providing sector

In

1951 ,69.5 percent of the working populatiom was engaged in agriculture .this percentage fell to 66.9 percent in 1991 and to 52.4 percent in 2011-12

Provision of food surplus to the expanding population

It

can be stated that the income elasticity of demand for food is very high in developing countries Contribution to capital formation Generating of surplus from agriculture will ultimately deend on increasing the agricultural productivity considerably

Providing raw material to industries

Agriculture provides raw material to various industries of national importance sugar industry ,jute industry,cotton textile ,vanaspati industry are example of some such industries which depend on agriculture for their development Market for industrial products Since more than two thirds of the population of developing countries lives in rural areas,increased rural purchasing power is a valuable stimulus to industrial development

Importance in international trade

For a number of years the three agriculture based exports of india- cotton ,textiles,jute,and tea accounted for more than 50 % of export earnings of the country Importance of agriculture products in the consumption basket The per capita income in india is very low .consequently a large part of this income is spent on fulfilling the basic consumption requirement of the people .it has been estimated that in india approximately 60 % of household consumption is of agricultural products

Indias position in world Agriculture

Rank

Total Area Seventh Irrigated Area First Population Second Economically Active population Total Cereals Third Wheat Second Rice Second Coarse grains Fourth Total Pulses First

Second

Mile Stones in Agricultural Development

Green

Revolution (1968) Ever-Green Revolution (1996) Blue Revolution (water, fish) White Revolution (Milk) Yellow Revolution (flower, edible) Bio-Technology Revolution ICT Revolution

The thrust areas:

Diversification Inter-cropping Micro

of Agriculture

Management Water Management Organic Farming Agri-Clinics and Agri-business Centres Bio-Technology

Conclusion
Provides

about 65% of the livelihood Accounts for 27% of GDP Contributes 21% of Total Exports, and Supplies Raw materials to Industries Growth Rate in production 5.7% Food grains production 211.17 mt

Thank you !!!