Contribution of Agriculture in the Indian Economy Essay for Upsc Uppsc

Agriculture is the backbone of the Indian economy. From ancient times to modern days, farming has been the main source of food, employment, and livelihood for the people of India. Even today, when industries and services are growing fast, agriculture continues to play a vital role in the economic and social development of the country. India is often called an agricultural country because a large part of its population depends directly or indirectly on farming. In this essay, we will discuss the meaning of agriculture, its importance in India, its contribution to the economy, the challenges it faces, and the steps taken by the government to improve it.

Meaning of Agriculture

Agriculture means the practice of growing crops and rearing animals to provide food, raw materials, and other products that people need for living. It includes activities such as farming, dairying, poultry, fishing, horticulture, and forestry. Agriculture is not only about food production but also about sustaining life and supporting industries that depend on it.

Importance of Agriculture in India

1.Source of livelihood

o   Around 40–45% of the population of India is directly employed in agriculture and allied activities. In villages, most families depend on farming for income.

2.Food security

o   Agriculture provides food for the 1.4 billion people of India. Crops like rice, wheat, pulses, sugarcane, fruits, and vegetables are essential for daily life. Without agriculture, India cannot achieve food security.

3.Cultural importance

o   Agriculture is not only an economic activity but also a part of India’s culture. Many festivals such as Pongal, Baisakhi, Onam, and Makar Sankranti are linked to the harvest season.

4.Economic base

o   Agriculture has been the base of India’s economy for centuries. Even after industrialization, farming continues to provide income and resources to the nation.

Contribution of Agriculture to the Indian Economy

1. Contribution to National Income

In the early years after independence, agriculture contributed more than 50% to India’s national income. Today, due to the growth of industries and services, this share has reduced to around 17–18%. But it still remains a strong pillar of the economy because of the large workforce depending on it.

2. Employment Generation

Agriculture is the largest employer in India. A huge number of people in rural areas work in farming, animal husbandry, fishing, and forestry. Even though its share in GDP has gone down, its role in providing jobs is still unmatched.

3. Supply of Food

The most important contribution of agriculture is the supply of food grains, fruits, vegetables, milk, and meat to the people. Without it, India cannot meet the needs of its large population.

4. Raw Material for Industries

Agriculture provides raw materials for many industries. For example:

·        Cotton for the textile industry

·        Sugarcane for the sugar industry

·        Jute for the jute industry

·        Tea and coffee for beverages

·        Fruits for food processing industry

Without agriculture, these industries cannot survive.

5. Contribution to Foreign Trade

Agricultural products such as rice, spices, tea, coffee, cotton, tobacco, and marine products are exported to many countries. India earns valuable foreign exchange from these exports. For example, India is the largest exporter of spices in the world.

6. Contribution to Capital Formation

Agriculture helps in capital formation by generating savings and surplus income that can be invested in industries and infrastructure. A strong agricultural sector provides stability for overall economic growth.

7. Development of Rural Economy

Most of India’s villages depend on farming. Agriculture creates employment, supports small businesses like fertilizers, seeds, tools, and provides opportunities for rural development.

Role of Agriculture in Other Sectors

·        Transport and trade: Agricultural goods need to be transported from farms to markets. This promotes trade, transport, and communication.

·        Banking: Banks provide loans to farmers. Thus, agriculture supports the growth of the financial sector.

·        Government revenue: Agriculture contributes through taxes, market fees, and export duties.

Problems of Indian Agriculture

Although agriculture is important, it faces many problems:

1.Dependence on monsoon

o   A large part of Indian farming depends on rainfall. Droughts or floods create problems of crop failure.

2.Small landholdings

o   Farms in India are usually small and fragmented, which reduces productivity.

3.Low productivity

o   Compared to developed countries, the productivity of Indian crops is low due to poor technology and lack of modern methods.

4.Lack of irrigation

o   Only about half of the cultivated land is irrigated. The rest depends on monsoon rains.

5.Use of traditional methods

o   Many farmers still use old tools, seeds, and farming techniques.

6.Lack of credit

o   Farmers often depend on moneylenders for loans, which creates debt and poverty.

7.Storage and marketing issues

o   Lack of cold storage, poor transport, and middlemen reduce farmers’ profits.

8.Climate change

o   Irregular weather, rising temperatures, and floods are new threats to agriculture.

Government Initiatives for Agriculture

The Government of India has taken many steps to improve agriculture:

1.Green Revolution

o   In the 1960s, high-yield seeds, chemical fertilizers, and irrigation facilities increased production, especially of wheat and rice.

2.Irrigation projects

o   Large dams and canals like Bhakra Nangal, Indira Gandhi Canal, and Sardar Sarovar provide water for irrigation.

3.Minimum Support Price (MSP)

o   The government fixes a minimum price for crops to protect farmers from losses.

4.Kisan Credit Card (KCC)

o   Farmers get easy loans for seeds, fertilizers, and other needs.

5.Crop Insurance

o   Schemes like Pradhan Mantri Fasal Bima Yojana protect farmers from losses due to natural disasters.

6.Digital initiatives

o   Farmers now get weather updates, crop advice, and market information through mobile apps and digital platforms.

7.Organic farming and sustainable agriculture

o   The government is promoting natural farming, organic fertilizers, and eco-friendly methods to protect soil and health.

Future of Agriculture in India

Agriculture has a bright future if proper reforms are made. With modernization, scientific methods, and better infrastructure, farming can become more productive and profitable. Mechanization, biotechnology, and digital technology can change the face of Indian agriculture.

·        Agri-tech: Use of drones, AI, and mobile apps to guide farmers.

·        Climate-smart farming: Methods that reduce water use and protect against climate change.

·        Export potential: By producing high-quality food, India can become a global food supplier.

·        Doubling farmers’ income: The government has set the goal of doubling farmers’ income by improving productivity, storage, and marketing.

Agriculture is not just an economic activity; it is the lifeline of India. It provides food, jobs, raw materials, and foreign exchange. Even though its share in GDP is falling, its importance cannot be ignored. To make India self-reliant and strong, agriculture must be modernized and given priority. A prosperous agriculture sector means a prosperous India because the majority of Indians still live in villages and depend on farming.

Therefore, agriculture will continue to be the backbone of the Indian economy, supporting both present needs and future growth.