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Discuss the role of agriculture in the Indian economy.

Asked by Topperlearning User 5th June 2015, 8:46 AM
Answered by Expert

Role of agriculture in the Indian economy:  

  1. Share in national income: Due to the development of the primary and secondary sectors, the share of agriculture in the national income has decreased from 61% in 1950-51 to 14.6% in 2009-10. But agriculture still continues to play a significant role in the growth of socio-economic sector in India.
  2. Largest employment producing sector: Agriculture is the only means of living for two-thirds of the employed people in India. In 1950-51, 69.5% of the total working population was engaged in agriculture. It has been reduced to 56.7% in 2001. Due to a rapid increase in the population, the absolute number of people involved in agriculture has grown enormously.
  3. Providing raw material for industrial development: Many industries such as cotton and jute industries, sugar industry, vanaspati industries depend on the agricultural sector for raw material and for their development. 
  4. Market for industrial products: Agriculture also provides a market for industrial goods. Purchasing power of the rural people is a valuable motivation to industrial development. 
  5. Importance in international trade: Agriculture plays a significant role in international trading activities.  Total exports have been increased from 6.9% in 2010-11 to 9.08% in 2011-12.
Answered by Expert 5th June 2015, 10:46 AM
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