Why should agriculture sector is considered to be the back bone of the Indian economy?
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Agriculture assumes the pivotal position as the backbone of the Indian economy, as it contributes manifoldly towards the socio-economic development of the nation. Some of the principle reasons as to why this sector assumes this critical position are enumerated below:
Generation of Employment:
Large Workforce: Agriculture employs more than 50% of the workforce in India; hence, it is the largest source of employment in the country.
Rural Livelihood: It is the main source of income for the majority of the rural population, where most Indians reside.
Share in GDP:
Economic Share: Despite the rise of the services and industrial sectors, agriculture contributes about 16-18% to India’s Gross Domestic Product (GDP).
Economic Foundation: Agriculture forms part of the economic stability and growth of India.
Food Security:
Self-Sufficiency: Agricultural sector satisfies national food security through production of basic food grains, fruits, vegetables, and other crops.
Export Earnings: India is one of the largest exporters of agricultural products, thereby adding to foreign exchange reserves.
Supply of Raw Materials:
Industrial Input: It provides raw materials to various industries like textiles, sugar, food processing, and dairying.
Economic Linkages: Again, these industries are sources of employment and addition to GDP, thus proving the inter-link between agriculture and industry.
Poverty Reduction:
Rural Development: Agricultural growth leads to increase in rural income, which enables reduction in poverty and rise in standard of living.
Inclusive Growth: It sustains the livelihoods of small and marginal farmers to help in all-inclusive economic growth.
Cultural Value:
Tradition and Culture: Agriculture is very deeply embedded in the culture and traditions of India, especially on account of the fact that it shapes festivals, cuisines, and even ways of life.
Social Cohesion: Supporting social harmony and well-being of communities in rural areas.
Sustainability and Environment:
Eco-Friendly Practices: It facilitates sustainable agriculture practices for the conservation of the environment.
Climate Resilience: Innovations in agriculture enhance resilience to climate change for sustainable development.
Government Efforts:
Policy Support: Thereafter, government has also introduced various schemes like Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, and Kisan Credit Card scheme to ensure agricultural growth with the welfare of farmers.
Subsidies and Incentives: Subsidies on fertilizers, seeds, and irrigation facilitate agricultural productivity
Economic Multiplier Effect:
Demand Creation: The income from agriculture generates demand for industrial goods and services in general, contributing to the growth of the economy. This forms part of the economy when agriculture is on its boom. On the other hand, amidst thriving agriculture, vibrant rural markets add to the economy.
In sum, agriculture in India plays a much larger role than being an economic activity; it is an epitome of life itself and forms an integral constituent of the socio-economic infrastructure. Contributions to employment, GDP, food security, raw material supply, alleviation of poverty, cultural identity, preservation of the environment, and last, but certainly not the least, government policy underwrites the truism about agriculture being the backbone of Indian economy. Ensuring growth and sustainability of the sector of agriculture is essential for India’s all-round developmental stability.
Agriculture assumes the pivotal position as the backbone of the Indian economy, as it contributes manifoldly towards the socio-economic development of the nation. Some of the principle reasons as to why this sector assumes this critical position are enumerated below:
Generation of Employment:
Large Workforce: Agriculture employs more than 50% of the workforce in India; hence, it is the largest source of employment in the country.
Rural Livelihood: It is the main source of income for the majority of the rural population, where most Indians reside.
Share in GDP:
Economic Share: Despite the rise of the services and industrial sectors, agriculture contributes about 16-18% to India’s Gross Domestic Product (GDP).
Economic Foundation: Agriculture forms part of the economic stability and growth of India.
Food Security:
Self-Sufficiency: Agricultural sector satisfies national food security through production of basic food grains, fruits, vegetables, and other crops.
Export Earnings: India is one of the largest exporters of agricultural products, thereby adding to foreign exchange reserves.
Supply of Raw Materials:
Industrial Input: It provides raw materials to various industries like textiles, sugar, food processing, and dairying.
Economic Linkages: Again, these industries are sources of employment and addition to GDP, thus proving the inter-link between agriculture and industry.
Poverty Reduction:
Rural Development: Agricultural growth leads to increase in rural income, which enables reduction in poverty and rise in standard of living.
Inclusive Growth: It sustains the livelihoods of small and marginal farmers to help in all-inclusive economic growth.
Cultural Value:
Tradition and Culture: Agriculture is very deeply embedded in the culture and traditions of India, especially on account of the fact that it shapes festivals, cuisines, and even ways of life.
Social Cohesion: Supporting social harmony and well-being of communities in rural areas.
Sustainability and Environment:
Eco-Friendly Practices: It facilitates sustainable agriculture practices for the conservation of the environment.
Climate Resilience: Innovations in agriculture enhance resilience to climate change for sustainable development.
Government Efforts:
Policy Support: Thereafter, government has also introduced various schemes like Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, and Kisan Credit Card scheme to ensure agricultural growth with the welfare of farmers.
Subsidies and Incentives: Subsidies on fertilizers, seeds, and irrigation facilitate agricultural productivity
Economic Multiplier Effect:
Demand Creation: The income from agriculture generates demand for industrial goods and services in general, contributing to the growth of the economy. This forms part of the economy when agriculture is on its boom. On the other hand, amidst thriving agriculture, vibrant rural markets add to the economy.
In sum, agriculture in India plays a much larger role than being an economic activity; it is an epitome of life itself and forms an integral constituent of the socio-economic infrastructure. Contributions to employment, GDP, food security, raw material supply, alleviation of poverty, cultural identity, preservation of the environment, and last, but certainly not the least, government policy underwrites the truism about agriculture being the backbone of Indian economy. Ensuring growth and sustainability of the sector of agriculture is essential for India’s all-round developmental stability.
The agriculture sector is often regarded as the backbone of the Indian economy for several critical reasons. Firstly, it provides employment to about 50% of the Indian workforce, making it the largest source of livelihood in the country. This sector’s significance is further underscored by its contribution to the national GDP, which, although it has declined over the years, still remains substantial.
Secondly, agriculture is crucial for food security in India, a nation with a rapidly growing population. It ensures a steady supply of food grains, vegetables, fruits, and other essential commodities, sustaining millions of households. The sector also supports allied industries such as dairy, fisheries, and forestry, contributing to a diverse economic base.
Moreover, agriculture drives rural development. A significant portion of India’s population resides in rural areas, where farming is the primary economic activity. Investments in agriculture lead to better infrastructure, improved rural incomes, and overall socio-economic development.
Lastly, agriculture plays a pivotal role in India’s trade, with agricultural products forming a significant part of exports. This not only brings in valuable foreign exchange but also promotes global economic integration.
In summary, agriculture is indispensable to India’s employment, food security, rural development, and international trade, firmly establishing it as the backbone of the economy.