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Role Of Agriculture in Indian Economy

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Agriculture economy

Publicado en: Economía y finanzas
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Role Of Agriculture in Indian Economy

  2. 2. INTRODUCTION Agriculture is the backbone of Indian economy. Agriculture is the most important occupation for most of the Indian families. In India, agriculture contributes about 16% of total GDP & 10% of total exports. That’s reason India secured second position worldwide in terms of farm output. About 75% people are living in rural areas and are still dependent on Agriculture. About 43% of India’s geographical area is used for agricultural activity.
  3. 3. AGRICULTURE IN INDIA  Total Geographical Area - 328 million hectares  Net Area sown - 142 million hectares  Gross Cropped Area – 190.8 million hectares  Net Irrigated Area – 56.9 million hectares  Provides food to more than 1 billion people  Produces 51 major crops  Contributes to 1/6th of the Export Earnings.
  4. 4. INDIA IN WORLD OF AGRICULTURE Largest Producer of Milk, Cashew nuts, Coconuts, Tea, Ginger, Turmeric & Black Pepper. Largest Cattle population-281 million Second largest producer of Wheat, Rice, Sugar and Groundnut and Pulses. Third largest producer of Tobacco. Third largest in implementation of Mechanization 17-Aug-17
  5. 5. SHARE IN NATIONAL INCOME Although the share of agriculture in the total national income has been gradually decreasing on account of the development of secondary & tertiary sectors, it still contributed about 18% of nation income in 2006-07.(in 1950-51, it was 59%)
  7. 7. SOURCE OF EMPLOYMENT In India, agriculture is the main source of employment. Even in 2004-05, more than 56% of the total labour force of India is engaged in agriculture & depend on it for their livelihood(1950-51:69.5%). It becomes evident from this fact that other sectors of the economy could not generate enough employment for the growing population.
  8. 8. PROVISION OF FOOD GRAINS Agriculture in India has played an important role in meeting almost the entire food needs of the people. The production of foodgrains in India has increased from 51 million tonnes in 1950-51 to 208.3 million tonnes in 2005-06. This has enabled the country to overcome the problems of food grain shortages.The country almost self sufficient in food grains & no longer depends on import of foodgrains.
  9. 9. SUPPLY OF RAW MATERIALS TO INDUSTRIAL SECTOR Many industries like cotton industry, sugar industries,jute industries etc,. depends on agriculture for their rawmaterial requirements. Moreover, workers engaged in various industries depend on agriculture for their food requirement.
  10. 10. MARKET FOR INDUSTRIAL PRODUCT Agriculture provides markets for large number of industrial products. Since about two thirds of India lives in rural areas,there is a large rural purchasing power which has created a large demand for all type of industrial products. Green revolution has consideraly increased the purchasing power of the large farmers in the recent years.
  11. 11. EARNER OF FOREIGN EXCHANGE Through exports of agricultural commodities like tea,cotton,coffee,jute,fruits,vegetables, spices,sugar,oil, etc. in the past, export of agricultural products accounted for about 70% of the export earnings of the country.
  13. 13. SIGNIFICANCE FOR TRADE & TRANSPORT Various means of transport like roadways & railways get bulk of their business from the movement of agriculture commodities & raw materials.
  14. 14. SOURCE OF REVENUE FOR THE GOVERNMENT • Through the direct contribution of agricultural taxes to the central & state government is not significant, they get a significant part of their total revenue in terms of land revenue, irrigation charges, taxes imposed on the commodities purchased by the cultivators etc. central government also earns revenue from export duties.
  15. 15. CONCLUSION On over all view, India has always been benefited by AGRICULTURE. Though the future of India is industrialiation, the contribution of agriculture would always prove to be vital for making India a powerful & stable economy in the future.