In this article, we will discuss Significance of Agriculture in the Indian Economy. So, let’s get started.
Significance of Agriculture in the Indian Economy
- Food Security and Induced Growth of Industrial Sector: Flourishing Agricultural production in India is the main factor behind the food security of the large Indian population.
- Agriculture supplies raw materials to various agro-based industries like sugar, jute, cotton textile and vanaspati industries. Food processing industries are similarly dependent on agriculture.
- Increase in rural purchasing power is very necessary for industrial development as two-thirds of the Indian population live in villages.
- After the green revolution the purchasing power of the large farmers increased due to their enhanced income.
- Source of Government Revenue: Agriculture is one of the major sources of revenue to both the central and State government of the country. The government is getting a substantial income from rising land revenue.
- Some other sectors like railways, roadways are also deriving a good part of their income from the movement of agricultural goods.
- Contribution to International Trade: Agriculture plays an important role in international trade. Jute, tea, coffee and spices are the country’s well known conventional exports.