The Role of Agriculture in Indian Economy

Byshreyasri

India’s economic basis is mostly based on agriculture, as farming provides food for more than 55 percent of the country’s population. Nonetheless, the landscape of Indian agriculture is characterised by a technological divide, adequate mechanization, As a result, a sizable portion of society is dependent on agriculture, the contribution of agriculture in Indian economy can be seen in many ways, such as-

 

  • Food Security: A pivotal role of agriculture lies in ensuring sustenance for a vast majority of Indians. Adequate nourishment caters to individuals’ dietary requisites, thus fortifying human capital.
  • Livelihood Provision: Another key facet of agriculture’s relevance is its role in providing livelihoods for over 55 percent of the population, particularly in rural hinterlands.
  • National Income Contribution: Agriculture contributes approximately 20 percent to India’s overall income, thereby generating financial resources for both agrarian and non-agrarian rural households.
  • Export Revenue Source: Agricultural produce constitutes around 12 percent of India’s total exports. Export-oriented crops like coffee, tea, and cotton augment foreign exchange earnings.
  • Raw Material Supply: Agriculture serves as a cornerstone for various industries, including textiles, food processing, and pharmaceuticals. These sectors heavily rely on crops like cotton, fruits, and medicinal plants.
  • Rural Development Catalyst: Agricultural growth has the potential to catalyze rural development by bolstering essential services, education, healthcare, and infrastructure, thereby narrowing the rural-urban divide.

Priorities for Indian Agriculture

  • Technology Adoption: Encouraging the adoption of contemporary agricultural methods and technologies, such as precision farming, drip irrigation, and biotechnology, holds the potential to substantially augment productivity and sustainability.
  • Research and Development: Investment in agricultural research is paramount for cultivating crop varieties resilient to climate change, pests, and diseases, while concurrently enhancing overall productivity.
  • Infrastructure Enhancement: The development of rural infrastructure, encompassing transportation, storage facilities, and marketplaces, will streamline the movement of goods and mitigate post-harvest losses.
  • Financial Accessibility: Ensuring credit and financial services accessibility for smallholder farmers can empower them to invest in inputs, machinery, and technology that amplify productivity.
  • Market Connectivity: Establishing robust market linkages and reducing intermediaries can empower farmers to command equitable prices for their produce, thus elevating their income prospects.
  • Climate Adaptation: Implementing climate-resilient farming practices and advocating sustainable land management techniques will bolster Indian agriculture’s adaptability to evolving climatic conditions.
  • Education and Extension Services: Granting farmers access to agricultural education and extension services can equip them with the proficiency and skills essential for modernized farming approaches.

Top of Form

Agriculture has a diverse role in India’s economic growth, spanning issues of food security, employment creation, income production, and export earnings. But it continues to face challenges that prevent it from fully realizing its promise to support economic growth. If you want to more information visits the website of TractorKarvan.