Significance of Agriculture in the Indian Economy? UPSC Daily Important Topic | 13 September 2022

Significance of Agriculture in the Indian Economy?

✓Food Security and Induced Growth of Industrial Sector: Flourishing Agricultural production in India is the main factor behind the food security of the large Indian population.

✓Agriculture supplies raw materials to various agro-based industries like sugar, jute, cotton textile and vanaspati industries. food processing industries are similarly dependent on agriculture.

Increase in rural purchasing power is very necessary for industrial development as two-thirds of the Indian population live in villages.

After the green revolution the purchasing power of the large farmers increased due to their enhanced income.

✓Source of Government Revenue: Agriculture is one of the major sources of revenue to both the central and State government of the country. The government is getting a substantial income from rising land revenue

Some other sectors like railways, roadways are also deriving a good part of their income from the movement of agricultural goods.

Contribution to International

✓Trade: Agriculture plays an important role in international trade. Jute, tea, coffee and spices are the country’s well known conventional exports.