Indian Agricultural: Growth, Generation, Policy & Problem Indian Agricultural | Page 9

Pg.no. 8
02. Agricultural contribution towards Indian economy
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and
fishing accounted for 17% of the GDP. The sector employed 49% of its total workforce in 2014.
Agriculture accounted for 23% of GDP, and employed 59% of the country's total workforce in 2016.
As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily
declined from 1951 to 2011, yet it is still the country's largest employment source and a significant
piece of its overall socio-economic development. Crop-yield-per-unit-area of all crops has grown since
1950, due to the special emphasis placed on agriculture in the five-year plans and steady
improvements in irrigation, technology, application of modern agricultural practices and provision of
agricultural credit and subsidies since the Green Revolution in India. However, international
comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in
the world. The states of Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra Pradesh,
Telangana, Bihar, West Bengal, Gujarat and Maharashtra are key contributors to Indian agriculture.
The role of agriculture for the development of an economy may be stated as below:
1. Contribution to National Income:
The economic history of many advanced countries tells us that agricultural prosperity contributed
considerably in fostering economic advancement. It is correctly observed that, “The leading
industrialized countries of today were once predominantly agricultural while the developing economies
still have the dominance of agriculture and it largely contributes to the national income. In India, still
28% of national income comes from this sector.
2. Source of Food Supply:
Agriculture is the basic source of food supply of all the countries of the world—whether
underdeveloped, developing or even developed. Due to heavy pressure of population in
underdeveloped and developing countries and its rapid increase, the demand for food is increasing at
a fast rate. If agriculture fails to meet the rising demand of food products, it is found to affect adversely
the growth rate of the economy. Raising supply of food by agricultural sector has, therefore, great
importance for economic growth of a country.
Ramesh Kumar P