AGRICULTURE & INDIAN ECONOMY
AGRICULTURE & INDIAN ECONOMY
Briefly explain the importance of agriculture ln Indian Economy and mention the scope of agriculture in India (Not more than 150 words)(KAS MAINS 2020)
STRUCTURE
Introduction – A brief introduction to agriculture (15 words)
Body – Explain importance of agriculture ln Indian Economy and mention the scope of agriculture in India (120 words)
Conclusion – Mention a short conclusion (15 words)
ANSWER
Agriculture in India is defined as an art-science and economic purpose as well as a business for raising crops and livestock in the area. Agriculture is also defined as the only means of subsistence agriculture at a very large and specific stage of human development in India. Agriculture is a broad pattern that includes all aspects of crop production as well as horticulture and livestock as well as afforestation
PROVISION OF FOOD GRAINS
- Agriculture, be it India or the entire world over is revered for its prime task of producing food grains and feeding the population which is directly or indirectly dependent on food grains only.
- Wheat, rice, barley, maize, millets are some of the important cereals that source our food. Pulses and beans like lentils, gram, soybean, green beans are the other basic demands. Then mustard, coffee, tea, sesame, fruit, vegetables; you get all by cultivating.
CONTRIBUTION TO GDP
Agriculture has a substantial contribution to GDP, though that has reduced to a big extent. Around 26 percent of the gross domestic product in 2001.
EMPLOYMENT GENERATION
- In India, at least two-thirds of the working populace is employed in agricultural works. The majority of the rural households thrive on agriculture and we are still a transition state from an agrarian economy. A large number of skilled and unskilled laborers are required for the construction works and in other fields. Agriculture employed 50% of the Indian workforce in 2018.
- Although disguised unemployment plagues the agriculture sector only, there is no denial of the fact that agriculture is labor-intensive. Thus it contributes to the generation of a large amount of employment for the working population. Agriculture employs the maximum number of people during the peak months of the year, i.e. during the sowing and harvesting time.
PROVIDER OF RAW MATERIALS
Agriculture supplies a great number of raw materials to various agro-based industries like sugar, tea, jute, cotton textile, and oil industries. Cotton balls and dyes for the textile industries, jute fiber for the jute factories, bamboo and weed sticks for various cottage handicraft industries, all come under the purview of agriculture. Similarly, food processing industries are also dependent on agriculture to a large part.
MARKET FOR INDUSTRIAL PRODUCTS
- Agriculture produce provides a major backing to both domestic and international markets. An increase in rural purchasing power is very important for industrial development as two- thirds of the Indian population live in rural parts of India. India has witnessed a tremendous increase in the purchasing power of the big farmers which enhanced due to their rise in income and additionally a negligible tax burden, being exempted from the Income-tax.
- Clothes, cereals, pulses, oils, baby products, spices, dairy products have a large market to their name. Agriculture only has made this possible. Several seemingly unconnected markets thrive on agriculture. This is also the prime importance of agriculture in India.
CONTRIBUTION TO REVENUE
The agriculture has provided helping hand to governments so to earn huge revenue from cultivation and its allied activities like:
- Cattle rearing,
- Fishing,
- Animal husbandry
- Poultry farming etc.
Indian Railways also gets a significant amount of revenue in the form of freight charges for both semi-finished and finished agricultural products. Thus agriculture forms the face of crisp budgetary allocations.