05-06-2012, 05:06 PM
SECTORAL DEVELOPMENT IN ECNOMIC DEVELOPMENT IN INDIA
AGRICULTURE:
SECTORAL DEVELOPMENT IN ECNOMIC DEVELOPMENT IN INDIA.docx (Size: 25.25 KB / Downloads: 0)
IMPORTENCE OF AGRICULTURE:
In a developing country like India, agriculture plays an important role in the economic development of the country. Despite rapid industrial development agriculture still occupies a key position. It is the back bone of the Indian Economy. To ensure a higher rate of growth in the economy, rapid growth of agriculture is absolutely necessary.
• Source of Employment:
According to 2001 census, Agriculture is the single largest sector which provides employment to about 59% of working population. In developed countries the percentage of population enagaged in agriculture is about 2 to 3% only. The Tenth
• Share In National Income:
Agriculture contributed a lion’s share in national income on the eve of planning. In recent years its share declined due to the development of secondary and tertiary sectors. Agriculture continues to contribute about 1/3rd to out National income.
• Supplier Of Food:
Agriculture is the major source of food supply. As population in India is increasing demand for food is also increasing. The income elasticity of demand for foodgrains is 0.8 in India. It is estimated by population commission that India can remain self-reliant in agriculture only if agriculture output rises by 5% per annum.
• Source of Government Revenue:
Agriculture is the main source of revenue for government . It not only gets substantial revenue but the prosperity of railways and income for many others sources also depends on favourable agriculture.
• Facilitates Capital Formation:
Our economic planning depends on good harvests and bumper crops. When agriculture production increases, the extra income will be saved. Savings promotes capital formation and economic development. Thus it facilitates capital formation through savings and investment.
MEASURES TO INCREASE AGRICULTURAL PRODUCTIVITY IN INDIA
For the development of agriculture in every five year plan more and more funds has been allotted. Following are some of the measures taken to increase agricultural production.
