IMPORTANCE OF AGRICULTURE IN INDIA

IMPORTANCE OF AGRICULTURE IN INDIA

Agriculture is associated with the production of essential food crops. It not only encompasses all aspects of crop production but also includes livestock, forestry, dairy, fruit cultivation, poultry, beekeeping, arbitrary etc. Today agriculture is related to the production, processing, promotion, and distribution of various agricultural products. In fact, agriculture plays a critical role in the entire life of a given economy. In addition to providing food and raw materials, agriculture also provides employment opportunities to a very large percentage of the population in India.

India is 2nd larger producer of agriculture products. India accounts for 7.39 percent of total global agricultural output. The Agriculture sector’s contribution to the Indian economy is much higher than the world’s average (6.4%).

As per World Bank Database report, India ranks 9th position in world agricultural export with $37bn in 2019. It ranks 2nd in world agricultural production. 

Why Agriculture is Important?

  1. Prime source of Livelihood

In most parts of the world, agriculture is an important source of livelihood. About half of the Indian population is engaged in agriculture and allied activities and they get their livelihood from it.

  1. Supply of Food and Fodder (Food Security)

The agricultural sector provides food for human beings and fodder for domestic animals. Agriculture is the world’s leading source of food materials. All the essential food substances come from agriculture and allied activities provides carbohydrate, protein, fats, vitamins etc. The main requirement of any country is food security. Food security prevents malnourished that has traditionally been believed to be one of the major problems faced by developing countries including India. A stable agricultural sector ensures food security of the nation.

3.     National Income & Economic Development

Agriculture is the major source of national income for most developing countries including India. The share of agriculture in Gross Domestic Product was 55.4% in 1950-51, 52% in 1960-61. Though the share of agriculture in national income has come down, still it has a substantial share as according to economic survey 2020-21, the share of agriculture in GDP increased to 19.9 per cent in 2020-21 from 17.8 per cent in 2019-20. Since agriculture employs many people, it contributes to economic development. As a result, the national income level, as well as people’s standard of living is improved. It aids to create a good atmosphere for the overall economic development of a country.

 

  1. Source of Raw Material

Agriculture is the main source of raw materials to major industries all over the world. India is one of the largest producers of raw materials and exports to many countries.

  1. International Trade & Foreign Exchange Resources

Many agricultural products like sugar, tea, rice, spices, tobacco, coffee, etc. constitute the major items of exports of countries and gain foreign exchange. The nation’s export trade depends largely on the agricultural sector. For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18% of the entire value of exports of country. Therefore, agricultural products also continue to be an important source of earning for a country’s foreign exchange. India’s foreign trade is deeply associated with agriculture sector. Agriculture accounts for about 14.7% of the total export earnings. Besides, goods made with the raw material of agriculture sector also contribute about 20% in Indian exports.

6.     Marketable Surplus

As agricultural development takes place, production increases which leads to the expansion of marketable surplus. This may be exported to other nations.

7.     Employment Contribution

Agriculture sector provides larger employment opportunities in activities like construction of irrigation projects, drainage system and other such agriculture related activities. In developing countries like India, it provides more employment opportunities for the labor force, thus reduces the high rate of unemployment caused by the fast-growing population.

8.     Source of Saving & Future growth

Agriculture is also source of saving. After green revolution, many large and rich farmers saved surplus, which may be further use for development in agriculture for future growth.

  1. Important Source of Industrial Development

Various important industries in India find their raw material from agriculture. Cotton and jute textile industries, sugar, vanaspati etc. are directly dependent on agriculture.  besides, Handloom, spinning oil milling, rice thrashing are various small scale and cottage industries are dependent on agriculture sector for their raw material. It shows the importance of agriculture in industrial development of the nation.

India’s foreign trade is deeply associated with agriculture sector. Agriculture accounts for about 14.7% of the total export earnings. Besides, goods made with the raw material of agriculture sector also contribute about 20% in Indian exports.

  1. Importance of Agricultural Biodiversity

Agricultural biodiversity provides people with food and raw materials for products, such as clothing cotton, shelter, fuel wood, medicinal plants and roots, and biofuel resources, as well as employment and livelihoods. Therefore, agricultural biodiversity performs ecosystem services such as soil and water preservation, soil fertility and biota protection, and pollination, all of which are necessary for human survival.

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