Agriculture economy

1. ROLE OF AGRICULTURE IN
INDIAN ECONOMY
By:-
S.MEHARAJ,
BVT14021.17-Aug-17

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. 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. 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

6. 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. AGRICULTRE’S SHARE IN GDP
17-Aug-17

8. 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.

9. 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.

10. 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.

11. 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.

12. 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. TOP 10 AGRICULTURAL EXPORTS & IMPORTS-2008
EXPORTED TO
•ASEAN
•CHINA
•EUROPE
•S.ARABIA
•UAE
•USA
17-Aug-17
EXPORTS
IMPORTS
IMPORTED FROM
•ASEAN
•ARGENTINA
•BRAZIL
•CHINA
•EUROPE
•USA

14. SIGNIFICANCE FOR TRADE &
TRANSPORT
Various means of transport like roadways &
railways get bulk of their business from the
movement of agriculture commodities & raw
materials.

15. 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.

16. 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.