Role of Agriculture in Indian Economy -
Preface - India is a agriculture based economy about 70 percent of population during freedom has been engaged in agriculture and at current time according to census of 2011 about 54.6 percent of Indian population has been engaged in agriculture.
Importance of agriculture in the Indian economy can be understood on basis of these observations -
1. Contribution to Gross Domestic Product GDP of India
2. Supply of food grains
3. Agriculture and Employment
4. Supply of Raw Materials
5. Share of exports
6. Contribution in Transport
7. Source of Revenue
8. Provides Market for Industrial field
9. Agriculture and Industry
10 .Social and Political Significance of Agriculture
11. Contribution in trade
Contribution to GDP of India -
Agriculture contributes a significant share in the GDP of India. On the eve of planning , agriculture generated as 50 percent of the country's national Income. During the first five year plan the share of agriculture field in Indian economy is about 51.81 percent that is half of the total GDP. Contribution of agriculture in Indian GDP has been declined with the passing time . During the finance year 2019 -2020 the share of agriculture in Indian GDP is 17.4 percent that has increased about 2.7 percent during financial year 2020 - 2021 and reached to 20.19 percent of Indian GDP. After 17 years share of agriculture hitted 20 percent of GDP in financial year 2020- 2021.
Share of Agriculture in GDP - Graph -
Agricultural field share in GDP -
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During finance year 2020 -2021 --------
GVA of Agricultural field at constant prices - 2,040,079 cr rupees that is 16.38 percent of Indian GDP
GVA of Agricultural field at current prices - 3,616,523 crore rupees that is 20.19 percent of Indian GDP
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Agriculture share -
Graph of Agriculture and allied field share in Indian GDP -
Financial Year At current price At base price of year 2004- 2005
_______________ _______________ _______________________________
1950 - 1951 51.81 51.88
1951 - 1952 50.67 51.45
1952 - 1953 50.05 51.61
1953 - 1954 50.64 52.39
1954 - 1955 45.86 51.73
1955 - 1956 43.77 50.01
1959 - 1960 44.26 47.80
1965 - 1966 40.91 40.53
1970 - 1971 41.95 41.66
1975 - 1976 37.62 38.96
1980 - 1981 35.39 35.69
1985 - 1986 30.89 32.91
1990 - 1991 29.02 29.53
1995 - 1996 26.26 25.73
2000 - 2001 23.02 22.26
2003 - 2004 20.74 20.33
2004 - 2005 19.03 19.03
2005 - 2006 18.81 18.27
2006 - 2007 18.29 17.37
2007 - 2008 18.26 16.81
2008 - 2009 17.78 15.71
2009 - 2010 17.74 14.64
2010 - 2011 15.21 14.59
2011 - 2012 17.86 14.37
2012 - 2013 17.52 13.94
A number of decades prior to Independence this percentage is as high as 55 percent , the share of agriculture has decreased with the passing time and now the share of agriculture in GDP is about 20 percent. Though small compared to 50 - 60 percent share in GDP earlier, 20 percent share in GDP is also quite significant.
Supply of food grains -
India is one of those countries self sufficient in food grains. Indian agriculture is capable enough to meet almost the entire requirement of the total population. India is not only capable to fulfill its grain requirement but also supplying grain to other countries. Food grain production in India hitted record 316 million tonnes for the first time. The production of rice is highest over 127 million tonnes in fiscal year 2022 across India. The second highest production is of wheat about 113 million tonnes across India.
Food grains produced in India in fiscal yaer 2022 -
Volume in million tonnes
1. Rice --- 127.93
2. Wheat --- 113
3. Cereals --- 49.86
4. Maize --- 32.45
5. Gram --- 13.12
6. Bajra --- 9.25
7. Jowar --- 4.52
8. Tur --- 3.96
9. Moong --- 3.68
10 . Urad --- 2.68
Supply of Raw Materials -
Besides food grain production agriculture also provides raw material for industries . It provides raw products like cotton for clothes, seeds for oil.
Contribution in Transport -
Agriculture has a significant contribution in development of Indian transport. Transport of food grains and other agricultural products is a significant component of transport of India. India supplies food grains to other countries that also contributes in growth of transport. Inter - state transportation also helps in growth of transport service.
Source of Revenue -
The government generates revenue from agriculture through large supply to other countries
and other taxes on the commodities produced.
Provides Market for Industrial field -
It provides raw material to industries and industries provides machinaries, seeds, fertilisers, pesticides to agriculture. A large of population is engaged in Agriculture thus the demand in agricultural field is also high. Thus it provides market for industrial field . Due to higher dependence of population on agriculture the demand for industrial products use in agriculture is also high.
Agriculture and Industry -
Agriculture offers raw material for industries and agriculture also provides market for industries . Agriculture dispenses labor at relatively low wages for industries.
Social and Political Significance of Agriculture - Developement of agriculture has its social and political significance. India is a country of villages , mainly agriculture is done in rural areas. About 68 percent of Indian population is rural that is engaged in agriculture. Thus the social background of India is dependent on agriculture. With developement in agriculture social, economic and political life in village will improve .
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