Importance of AIE

 Importance of Agriculture         in Indian Economy

During Independence, there was extremely low productivity per hectare and per worker.

However, the previous trend of stagnant agriculture was completely changed due to the introduction of economic planning from 1950-51, and with special emphasis on agricultural development, particularly after 1962.

 (i) A steady increase in the area under cultivation is noticed.

 (ii) A substantial growth in the food crops is marked.

 (iii) During the plan period, there had been a constant increase in the yield per hectare.

Though the industry has been playing an important role in the Indian economy, still the contribution of agriculture in the development of the Indian economy cannot be denied.

This can be measured and gauged by the following facts and figures:

 1. Agricultural influence on national income:

The contribution of agriculture during the first two decades towards the gross domestic product ranged between 48 and 60%. In the year 2001-2002, this contribution declined to only about 26%.

 2. Agriculture plays vital role in generating employment:

In India at least two-

thirds of the working population earn their living through agricultural work. In India, other sectors have failed to generate many employment opportunities for the growing working populations.

 3. Agriculture makes provision for food for the ever-increasing population:* 

Due to the excessive pressure of population labor surplus economies like India and rapid increase in the demand for food, food production increases at a fast rate. The existing levels of food consumption in these countries are very low and with a little increase in the capita income, the demand for food rises steeply (in other words it can be stated that the income elasticity of demand for food is very high in developing countries).

 4. Contribution to capital formation:* 

There is general agreement on the necessary capital formation. Since agriculture happens to be the largest industry in developing countries like India, it can and must play an important role in pushing up the rate of capital formation.

Refrence - https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.ripublication.com/ijafst_spl/ijafstv4n4spl_11.pdf&ved=2ahUKEwjBzK-N1_n2AhW8R2wGHbkNBbsQFnoECAQQBg&usg=AOvVaw2VV1B3PYrwSpiZroj6ymlH