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1. Providing employment: India is predominantly agricultural country. This predominance has continued over
the century and in terms of % age share there in only a
marginal shift downward from about 72 % of population depending on agriculture at the time of independence
the century to about 52 % in 2008-09.
2. Share in National Income: Agriculture contributes a large share in the country’s GDP. Its share in total
GDP in 1950-51 was around 55% which has come down to 17%
in 2008-09. Get All Types Previous Years Questions Papers Available On My Site. This reduced share indecates
that the economy and its non-agruculture sector are growing; nevertheless
share of 17% is an indicator of the fact that India is still predominantly an agruculture economy.
3. Development of Industries: Agriculture has a big role in the development of industries specially the
agro-based industries such as textiles, sugar, tea, paper. There
are several other industries like handloom weaving and other cottage industries which also depend upon inputs
from agriculture. The prosperity of these agro based industries
is directly dependent upon the availability of inputs from the agricultural sector. Get Any Types Placement
Papers Available Here.
The prosperity of industries depends on agricultural prosperity from another angle also because the demand
for industrial products depends upon the income of the farmers
which in turn depends upon agricultural production.
4. Important for forgien trade: The country’s foreign trade especially in the export of traditional
commodities like jute, tea, tobacco and coffee depends a great deal on the
supplies of the agricultural sector. World Best Online Aptitude Tests Available Here. In case of crop
failures the country becomes a net importer of good grains.
At the time of independence and number of years thereafter our export basket mainly consisted of three agro-
production-cotton textiles, jute and tea. These three accounted for
more than 50 percent of our export earnings. If we consider other agricultural commodities like cashew,
kernels, tabacco, coffee, sugar, vegetable oil etc., the total share of
agricultural in total exports was about 70 percent.
As economy developed, the share of agricultural exports in total exports. In recent years, special schemes
have been started
to promote exports of fruits, vegetables, flowers, dairy products and forest products.
As far as the agro-imports are concerned they constituted just 3.1 percent of national imports in 2007-08.
This is very meager, considering the fact that nearly one-fourth of our
total import expenditure at the time of independence.
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