Indian Agricultural: Growth, Generation, Policy & Problem Indian Agricultural | Page 11

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Initially, agriculture absorbs a large quantity of labour force. In India still about 62% labour is absorbed
in this sector. Agricultural progress permits the shift of manpower from agricultural to non-agricultural
sector. In the initial stages, the diversion of labour from agricultural to non-agricultural sector is more
important from the point of view of economic development as it eases the burden of surplus labour
force over the limited land. Thus, the release of surplus manpower from the agricultural sector is
necessary for the progress of agricultural sector and for expanding the non-agricultural sector.
6. Creation of Infrastructure:
The development of agriculture requires roads, market yards, storage, transportation railways, postal
services and many others for an infrastructure creating demand for industrial products and the
development of commercial sector.
7. Relief from Shortage of Capital:
The development of agricultural sector has minimized the burden of several developed countries who
were facing the shortage of foreign capital. If foreign capital is available with the ‘strings’ attached to it,
it will create another significant problem. Agriculture sector requires less capital for its development
thus it minimizes growth problem of foreign capital.
8. Helpful to Reduce Inequality:
In a country which is predominantly agricultural and overpopulated, there is greater inequality of
income between the rural and urban areas of the country. To reduce this inequality of income, it is
necessary to accord higher priority to agriculture. The prosperity of agriculture would raise the income
of the majority of the rural population and thus the disparity in income may be reduced to a certain
extent.
9. Based on Democratic Notions:
If the agricultural sector does not grow at a faster rate, it may result in the growing discontentment
amongst the masses which is never healthy for the smooth running of democratic governments. For
economic development, it is necessary to minimize political as well as social tensions. In case the
majority of the people have to be kindled with the hopes of prosperity, this can be attained with the
Ramesh Kumar P