Question
Discuss the contribution and role of the agriculture sector in the Indian Economy. Also discuss the growth of Indian agriculture in recent years.
Answer :
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Skip in 10
Agriculture has historically been the backbone of the Indian economy and continues to play a vital role in its socio-economic development. Despite rapid industrialization and expansion of the service sector, agriculture remains fundamental to food security, employment generation, rural development, and overall economic stability. The sector not only provides sustenance to a large proportion of the population but also supports various allied industries and contributes significantly to national income and exports. One of the primary contributions of agriculture to the Indian economy is its share in national income. Although the percentage contribution of agriculture to Gross Domestic Product (GDP) has declined over the decades due to structural transformation, it still accounts for around 15–18 percent of India’s GDP. This decline in percentage terms does not indicate reduced importance; rather, it reflects faster growth in industry and services. Agriculture remains crucial because it supports nearly 45–50 percent of the country’s workforce. Thus, any fluctuation in agricultural performance directly affects income levels, consumption demand, and poverty levels in rural areas. Employment generation is another major role played by agriculture. It is the largest source of livelihood in rural India, where a majority of the population resides. Small and marginal farmers constitute a significant portion of agricultural households. Besides direct cultivation, agriculture supports allied sectors such as dairy, poultry, fisheries, horticulture, and forestry, which generate additional employment opportunities. The growth of these allied activities has diversified income sources for rural households and reduced dependency on traditional crop farming. Agriculture also ensures food security for the country’s vast population. India has achieved self-sufficiency in food grain production since the Green Revolution of the 1960s and 1970s. The production of rice, wheat, pulses, and coarse cereals has increased substantially over time. The Public Distribution System (PDS), buffer stock management by the Food Corporation of India (FCI), and procurement policies ensure availability and price stability of essential commodities. Food security not only strengthens economic stability
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