Role of agriculture in Indian Economy

Agriculture provided the first motivation for industrialization in most industrialized and developed countries. It plays a critical role in the Indian Economy. Agriculture provides a living for more than 70% of rural households. Plus, it has an essential role in all economies, regardless of their degree of development. It meets some fundamental human requirements by meeting both food and non-food requirements. During the last few years, Indian agriculture has grown at a rapid pace. To measure the role of agriculture in the Indian Economy, it is vital to look at its impact on economic development.

Features of the Indian Agriculture

Agriculture is the world’s largest and oldest business, and it remains so today. The role of agriculture in the Indian Economy significantly contributes to its progress. Growth in the net agricultural output indicates the increase in India’s GNP. The following are some of the most notable characteristics of Indian agriculture.

• Subsistence Agriculture

Subsistence agriculture is practiced in the majority of India. The farmer has a small plot of land, produces crops with the assistance of his family, and utilizes practically all the agricultural food, leaving a slight excess to offer in the market.

• Crop Diversity

India is a vast nation with a diverse range of relief, weather, and soil properties. As a result, India produces a wide range of crops. Both temperate and tropical crops are cultivated well. Only a few nations in the world grow a range of crops similar to India’s.

• Food crops Prevalence

Because Indian agriculture must sustain a considerable population, agricultural crop cultivation is the top goal for farmers practically all over the country. As a result, food crops account for over two-thirds of total planted land.

• Monsoon Dependence

Indian agriculture primarily relies on the monsoon, which is unpredictable, erratic, and inconsistent. Despite the large-scale improvement of irrigation systems since Independence, just one farmed area is supported by perpetual irrigation, with the other two-thirds subject to the whims of the monsoon season.

• The Value of Animals

Animal power has long been significant in agricultural tasks like plowing, threshing, irrigation, and carrying agricultural goods. However, comprehensive mechanization remains a long-term aim, and livestock will dominate the agricultural sector completely.

Role of Agriculture for Economic Development

Though industries have played an essential part, the role of agriculture in economic development in India cannot be overlooked. This section will go through the seven most essential functions of agriculture in economic development.

• Provides for the Ever-increasing Nation’s Food Needs

The significant role of agriculture in India is to create food provisions. Agriculture provides for the ever-rising population’s food needs. Food production is increasing quickly due to its excessive strain on demographic workforce surplus markets such as India. As a result, unless agriculture can consistently expand its sold excess of food grains, a crisis is likely to occur. Many emerging nations are going through this stage, and agriculture will improve to meet the rising food demand.

• Raw Materials Distribution to Agro-based Industries

Agriculture provides raw ingredients to various agro-based businesses such as sugar, cotton textile, jute, and vanaspati. In addition, agriculture is also essential to the food processing industry. As a result, the growth of these sectors is vital for agriculture and farmers.

• Enhancing Rural Well-being

Increased agricultural surpluses due to increased agricultural output tend to enhance societal wellbeing, especially in rural regions.

• Helps in Capital Formation

On the requirement of capital formation, there is broad consensus. Because agriculture is the most significant industry in emerging countries like India, the role of agriculture in economic development must play a significant role in accelerating the amount of capital creation. If it refuses to do so, the entire economic growth process will experience a setback.

• Industrial Product Market

Increased rural buying power is critical for industrial growth since villages house two-thirds of the Indian population. Because of their higher revenues and low tax burden, big farmers’ spending power expanded well after the green revolution.

• Contributes to National GDP

The role of agriculture in India has always been a significant contributor to India’s national GDP. Agriculture and related activities supplied around 59% of the entire national income in 1950-51. While agriculture’s proportion has steadily declined due to the rise of other industries, it has stayed relatively high compared to the industrialized nations of the globe.

• Infrastructure Development

The role of agriculture in economic development necessitates the construction of roads, postal services, marketplace, warehousing, shipping, and a variety of other components to help industry growth goods and the growth of the commercial world.

Conclusion

To summarise, Indian agriculture, together with its related industries, is India’s primary source of income. Because of cheap labor and self-sufficiency in raw supplies, agriculture enjoys a competitive edge in various agricultural products in the export industry. Furthermore, Indian agriculture is critical to the country’s internal and foreign trade.