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India is an agricultural country. The proper development of the economy of each country comes from the contribution of all the sectors of that country.
India’s economy can be understood from three sectors – primary, secondary and tertiary.
Agriculture comes in the primary sector.
Here we will talk about The Role of Agriculture In the Indian Economy 2023 .
It is often said about the Indian economy – Agriculture is the backbone of India.
Role of Agriculture In Indian Economy 2023
According to the latest data for 2020-21, the contribution of agriculture(role of agriculture in Indian economy 2023 ) to India’s GDP was 19.9%, which is higher than 17.8% in the previous session 2019-20.
If we observe this on a large scale, we will find that in 1951 it contributed 47.6% of GDP.
The reason for the change (decrease) in the GDP of the agriculture sector after years is the secondary and tertiary sectors.
In the sixties, there was no multifaceted development of the secondary and tertiary sectors.
Here we will talk about-: Role of Agriculture In Indian Economy 2023
Why is agriculture important?
Since GDP is determined by taking all the three sectors together. Primary, secondary and tertiary three categories are interdependent among themselves, so if the entire economy of the country is to be given a new dimension then all three categories should be provided equal opportunities them.
The role of agriculture in the Indian economy becomes important because 46% of India’s population is directly dependent on agriculture. If it is seen compared to other countries, then it is quite high.
Role of Agriculture in Indian Economy
features of agriculture in Indian economy, why role of agriculture in Indian economy 2023.
connection to a large population
40% of India’s population is directly dependent on agriculture. That is, their income and lifestyle are determined by agriculture. The rest of the population is indirectly dependent on agriculture.
Dependence on second-sector agriculture
The secondary sector depends on agriculture for essential raw materials. The secondary sector manufactures. The GDP contribution of the secondary sector is 25.92%.
Note-: Do you know?
Agricultural countries or countries that produce more raw materials, often those countries remain underdeveloped or the process of their development is very slow.
Gunnar Myrdal’s thoughts on Indian EconomyScientist Gunnar Myrdal has said about the Indian economy that if long-term economic development is to be done, it will be possible only with the contribution of the agriculture sector.
Importance of Agriculture in Indian Economy 2023
|features of agriculture in Indian economy|
Contribute to National Income
Talking about 1950-51, at that time the contribution of agriculture(contribution of agriculture in indian economy) in the total national income of India was 61%. Years later, if we talk about the present, the contribution of agriculture to the national income of the country is 20.19% in 2021-22.
However, you see these figures decreasing. The reason for this is the increase in the second and third sectors.
If we look at the contribution of agriculture in comparison to other countries, the contribution of agriculture to GDP in many European countries and America is only up to 1%.
Since agriculture plays a major role in national income, the role of agriculture becomes important.
Supply Wage Goods (Providing basic essential commodities)
Any person needs 3 basic essential items to live life – bread, cloth and a house. Agriculture produces wheat, rice food grains and other raw materials cotton.
If we compare the figures of 2021-22 with 1950, then the population has increased by almost 3 times. Accordingly, if we compare the agriculture of 1950 and the present 2021-22, then the agricultural yield has increased 4 times.
So these figures prove that the product of Indian agriculture has the capacity to feed the population of the whole of India i.e. 141 crore population.
Can you imagine how all this was possible?
Actually, M.S. Swaminathan’s Green Revolution of 1960 has led to an increase in yield. This is proof that agriculture can fill the stomach of the whole of India.
Talking about 1950-51, per person used to get 395 grams per day.
Today (2023), after the increase of 3 times the population, we are providing 437 grams of food grains per person. This system of measuring grain is called per capita availability.
Increase in employment
Due to the large population of India being associated with agriculture, many jobs come out of it. Talking about the employment generated from agriculture in India, according to the data of 2023, 41.49% people get employment from agriculture.
Talking about some old figures, in 2016-17, 46.2% people got direct and indirect employment from agriculture.
Comparing Indian agriculture and agriculture in other European countries and America, we get the result that the contribution of agriculture to employment in those countries is only between 1 to 2%.
Agriculture and Industry
The second sector is related to manufacturing, hundreds of factories are operated in their manufacture. The raw material required for the operation of those factories is supplied from the primary sector i.e. agriculture.
Raw materials can include cotton, sugarcane, handloom products like wood source (bamboo), etc. Other raw materials are available from the agricultural sector for other manufacturing.
agriculture and foreign trade
There are many such products of India in which India is number 1. There are some products in which India is at number 2. Commercial produce grown in abundance in India is exported, in which tea, coffee, tobacco, spices, cashew, oil, jute are exported.
Agriculture contributed 12.3% of the total exports in 2016-17. Talking about the latest figure, the export of the agriculture sector was 14% in 2023.
Note-: The edible oil used in the food industries of our country is imported from outside. According to the 2021-22 report, 6.54 million tonnes of palm oil was imported from Malaysia and Indonesia. If seen, the amount of oil imported is very high.
So if we look at the exports from India and the imports from outside, the payment settlement becomes almost equal, that is, there is no special benefit.
On the other hand, if the manufacture of edible oil is increased in India itself, the Indian economy can get a new option, the reason for this will be only agriculture.
By doing this the national income of India will increase.
There will be a reduction in the quantity of oil imported into India. At the same place the food industries will buy the oil produced by the farmers of our country, this will increase the income of the farmers, ultimately the income of the country will increase.
role in internal business
According to the NSSO survey, people in rural areas spend 56 percent of their income on food. At the same time, this figure of urban people is 44 percent.
There is a system in place for the supply of food items from rural areas to urban areas, that system may include transport, godowns, government godowns etc.
This gives tax to the government. Many people get employment by supplying food items. For this reason, also the role of agriculture becomes important in the economy.
Agriculture and Transport
There are many crops in India which are regional. Transport is needed to transport field crops from one place to another. Many hundreds of people get employment on the pretext of transport.
income to government
In “Agriculture and Transport” above, you learned that agriculture provides employment to transport workers. The government collects taxes on transport, which is the source of income for the government.
The government keeps agriculture tax-free up to a certain income.
The government earns huge income from the tax collection from the business of food items. The government charges irrigation tax, agriculture income tax, GST, excise duty and export duty on the food items exported.
From all these, the government gets a huge revenue, it contributes somewhere in strengthening the economy of the country.
source of savings
When the Green Revolution was started in 1960, it was first implemented in only a few states.
The reason for this is that the seeds used at that time required more water or required adequate irrigation.
But gradually it was started in other states and areas.
This led to large-scale agricultural production. Due to which the income of the farmers increased.
The farmers became rich due to the increase in the income of the farmers. They started depositing money in the bank. Some farmers also invest.
If all these are combined, then ultimately capital is formed. Capital increases the income of the country.
basic of economic development
More revolutions can be brought in the second sector by the production of row material. This will mean that people will get more employment in the second sector. Farmers in the primary sector will get more income. The income of the country will increase and the system will improve. Therefore, agriculture can be seen by linking it with the basics of economic development.
Social and Political Importance
80% of India’s population lives in villages. Most of the population of the village belongs to agriculture. If agriculture improves, the income of a large population will improve.
If rural income improves, it will be possible for them to participate in education and other national programs.
As a result, they will be able to become aware of the schemes and programs of the government.
Awareness will promote sociability and will also be able to become aware of the objectives of the government. As a result, they will be able to form a better government. A good government plays an important role in improving the economy of the country.
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