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Role of Agriculture in the Economy

Indian farmers are the backbone of our nation’s economy, as Indian economy is Primary agriculture based. According to a survey India is one of the top countries in cultivation and farming. But Indian farmers stayed neglected community for decades, despite their huge contribution in economy of the nation. Indian farmers are constantly subjected to harassment. India is the largest producer of wheat, rice, pulses and spices and has more scope for growth in Agriculture sector. If farmers get an assured minimum support price for their produce, if the functioning in trade becomes digital or online and the middle person is eliminated, who is exchanging goods from farmers to factories or from factories to farmers then the financial state of farmers will be improved.

Some important roles of agriculture in Indian Economy: –

1. Contribution to National Income:

Although the share of agriculture has been declining gradually with the growth of other sectors but the share still remained very high as compared to that of the developed countries of the world.

2. Source of Livelihood:

In India over two-thirds of our working population are engaged directly on agriculture and also similarly depend for their livelihood. According to an estimate, about 66 per cent of our working population is engaged in agriculture at present in comparison to that of 2 to 3 per cent in U.K. and U.S.A., 6 per cent in France and 7 per cent in Australia.

3. Source of Food Supply:

Agriculture is the only major source of food supply as it is providing regular supply of food to such a huge size of population of our country. It has been estimated that about 60 per cent of household consumption is met by agricultural products.

4. Role of Agriculture for Industrial Development:

 About 50 per cent of income generated in the manufacturing sector comes from all these agro-based industries in India. Moreover, agriculture can provide a market for industrial products as increase in the level of agricultural income may lead to expansion of market for industrial products.

5. Commercial Importance:

Indian Agriculture is playing a very important role both in the internal and external trade of the country. Agricultural products like tea, coffee, sugar, tobacco, spices, cashew-nuts etc. are the main items of our exports and constitute about 50 per cent of our total exports. Besides manufactured jute, cotton textiles and sugar also contribute another 20 per cent of the total exports of the country.



Ms. Khushi Sharma

B.Sc(Hons.) Agriculture

Amity University, Noida

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