Proverbially, India is known as “Land of Villages”. Near about 67% of India’s population live in villages. The occupation of villagers is agriculture. Agriculture is the dominant sector of our economy & contributes in various ways such as:
- National Economy: In 1990 – 91, agriculture contributed 31.6% of the National Income of India, while manufacturing sector contributed 17.6%. It is substantial than other countries for example in 1982 it was 34.9% in India against 2% in UK, 3% in USA, 4 % in the Canada. It indicated that the more the more the advanced stage of development the smaller is the share of agriculture in National Income.
- Total Employment: Around 65% population is working & depends on agriculture and allied activities. Nearly 70% of the rural population earns its livelihood from agriculture and other occupation allied to agriculture. In cities also, a considerable part of labor force is engaged in jobs depending on processing & marketing of agricultural products.
- Industrial Inputs: Most of the industries depend on the raw material produced by agriculture, so agriculture is the principal source of raw material to the industries. The industries like cotton textile, jute, paper, sugar depends totally on agriculture for the supply of raw material. The small scale and cottage industries like handloom and power loon, ginning and pressing, oil crushing, rice husking, sericulture fruit processing, etc are also mainly agro based industries.
- Food Supply: During this year targeted food production was 198 million tons & which is to be increased 225 million tons by the end of this century to feed the growing population of India i.e. 35 corer in 1951 and 100 corers at the end of this century. India, thus, is able to meet almost all the need of its population with regards to food by develop intensive program for increasing food production.
- State Revenue: The agriculture is contributing the revenue by agriculture taxation includes direct tax and indirect tax. Direct tax includes land revenue, cesses and surcharge on land revenue, cesses on crops & agril income tax. Indirect tax induces sales tax, custom duty and local octri, etc. which farmer pay on purchase of agriculture inputs.
- Trade: Agriculture plays and important role in foreign trade attracting valuable foreign exchange, necessary for our economic development. The product from agriculture based industries such as jute, cloth, tinned food, etc. contributed to 20% of our export. Around 50 % of total exports are contributed by agril sector. Indian agriculture plays and important role in roads, rails & waterways outside the countries. Indian in roads, rails and waterways used to transport considerable amount of agril produce and agro based industrial products. Agril products like tea, coffee, sugar, oil seeds, tobacco; spices, etc. also constitute the main items of export from India.