Importance of Agriculture in India

Importance of Agriculture in India: India is an agriculture based country, in India more than 50% population is dependent on agriculture because agriculture is the main source of income in rural areas. Everyone knows that India is called ruler’s country. Agriculture is the backbone of Indian economy.

Indian agriculture contribute in the initial two decades towards the total National output between 48% and 60%. The aggregate share of agriculture and allied sectors like agri-business, domesticated animals, fisheries, ranger service as far as rate of Gross Domestic Product (GDP) is 13.9% during 2013-2014.

Importance of Agriculture in India 

Agriculture of India comes 5th in exports constitute of the total export of the country. So we can say that agriculture is the most important sector in India.

Agriculture sector in India accounts of 18% of India’s Gross Domestic Product (GDP) and it provide employment to more than half population of the country directly or indirectly. More than half population in India directly and indirectly depended on the agriculture.

Some are directly attached with farming and field and some are involved in doing business with the agriculture goods and products.

Importance of Agriculture in India

India has that the capacity to produce the Food grain that can make the huge difference in the Indian economy. India is the largest producer of rice, wheat, pulses, spices, tea, coffee. Indian agriculture has many areas to start a business like dairy, fishery business, poultry etc.

Today’s time, Indian agriculture have been developed and still developing in every field like agricultural techniques, machinery, cropping system, various types of seeds etc. Indian agriculture also accounts the best position in producing fruits and vegetables in the world.

Food grains in 2013-2014 is 264 million tonnes which is increased when compared to 2012-2013 in 256 millions tonnes. This report is published by department of economics and states (DES). This is the good symptoms for the Indian economy. Agriculture play very important role in India and for Indian economy.

There are 11 major Importance of Agriculture in India

1. Contribution to National Income

From many years, agriculture is contributing a major part of national income. It contributed during the first two decades towards the Gross Domestic Product between 48% and 60%.

Importance of Agriculture in India

Agriculture is the main source of national income for most of the developing countries. In India more than half national income comes from agriculture sector.

2. Supply of Raw Material to Agro-based Industries

In India, Agriculture supplies the raw material like jute, cotton, sugar to various agro based industries. These all food processing industries are directly dependent on agriculture.

Industries get the raw material from agriculture such as textiles industry get cotton from the agriculture so that they are able to produce clothes and when they produces clothes from the cotton and they also need some people in their industry so that that they also create employment through the agriculture.

3. Foreign Exchange

Indian agriculture producing so many types of agricultural products which others countries are not able to produce such as jute, tabbaco, cotton, tea, raw cotton, coffee etc. they are exporting these products to other country and earn foreign exchange.

Importance of Agriculture in India

The Nations exporting trades are highly dependent on agricultural sector from exporting. Such agricultural products approximately in India accounts 18% of the entire value of exports.

This demonstrates that agricultural products is the important source of earning foreign exchange.

4. Employment Opportunities

One of the most importance of Agriculture in India is that, Agriculture sector is providing high employment opportunities to the unemployed people and labor force that reduce the high rate of unemployment in the developing countries.

Peoples are attached to the agriculture and earning income, some peoples are directly attached to the agricultural like farmers, labours.

Importance of Agriculture in India

They are directly attached to the field and producing agricultural products after that they are earning income and some others are indirectly attached to the agriculture like agri business. They are doing business of agricultural goods so that they are earning income.

There are various type of agro based industries which creating employment opportunities to the unemployment. Constructions of irrigation scheme, drainage system as well as some other activities in the agricultural sectors provides large employment opportunities to the unemployed people.

5. Marketable Surplus

Agriculture sectors contribute to the marketable surplus. Nation is developing from the various activities like many peoples doing work in mining, manufacturing and other none agriculture sectors.

All these activities rely on food production that they might meet from the Nations marketable surplus. As Indian Agriculture sector development takes place, production increase and leads to expansion of marketable surplus.

6. Economic Development

Agriculture contribute to economic development. The national income levels as well as the living standard of people in country have been improved.

Importance of Agriculture in India

Today’s the Indian agriculture developing at first rate of progressive outlook as well as increased motivation for the improvement and development. Hence, agriculture play an important role to create good atmosphere for overall economic development of the country.

7. Provision for Food for the Population

Agriculture makes provision for food for the every increasing population in India. It is just because of excessive pressure of population labour surplus economics likes India rapid increase in the demand for food. It is the basic importance of Agriculture in India”.

Importance of Agriculture in India

Food production increased at fast rate. The current level of food consumption in India is very low with a little increase in the capita income. The demand of food rising agriculture makes provision for food for the increasing population.

8. Significance to the International Trade

Agricultural products like tea, coffee, spices, tobacco etc are the major product of exports of countries that rely on agriculture. These exports of products helps to reduce countries unfavable balance of payments as well as saving foreign exchange.

Importance of Agriculture in India

This exchange may be used to import other essential inputs like machinery, raw material and other things related to agriculture, that is very helpful for the country’s economic development.

9. Food Security in India

Agriculture is the sector which ensure a Nation of food security because the main requirement of any country or any people is Food and Agriculture secure the food for the population.

Food security prevents malnourishment that has been believed from very long time to be one of the major problems faced by developing countries so there is very ‘importance of agriculture in India‘ for the food security.

10. Sources of Livelihood

In India, there are maximum number of population are working in agriculture. Two-third of the total Indian population engaged directly on agriculture and because of this, they also depend for their livelihood.

Importance of Agriculture in India

According to estimate, in India, there is about 66% of population is engaged in agriculture at the present time while 2-3 percent in UK 5-6 percent in France and 7% in Australia populations are highly dependent on agriculture.

Thus we can say that agriculture is the main source of livelihood in India and play a very important role in everyone’s life.

11. Sources of Government Revenue

Last importance of Agriculture in India, one-third of population engaged in agriculture and in agribusiness. So from this it can be said that agriculture is the main major source of revenue to government both the central and state government of country.

Importance of Agriculture in India

Indian government is getting a substantial income from the rising land revenue and agriculture and with this revenue government spend this money to develop the country in every field.

There are some other sectors like roadways, railways are also generating a good amount of income from the movement of Agricultural goods.


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