Present Situation of Agricultural Sector in India

Present Situation of Agricultural Sector in India

India has been an agriculture oriented economy before the british rule, during the british rule and even after the british rule. During planning period, industrialisation is mainly focused upon and due to that as compared to past, the present scenario of agriculture shows abnormal changes. Presently, agriculture sector provides much more employment, production and export income as compared to the past, but changes have been prevalent (irregular) in these areas. Though agriculture sector provides maximum employment to the economy, its contribution to the share in total revenue (National income) as compared to the other sectors of economy is the least.

Contribution in National Income

Usually, the income of agricultural sector is also known as the income of primary sector. It includes agriculture crops, poultry farming, fisheries and cattle rearing. As per economic survey of 2011-12, contribution of agriculture sector in national income (GDP) was 53.1 % in 1950-51 and had reduced upto 13.9 % (at constant prices) in the year 2011-12 due to greater importance given on industrialisation since 1956. This fall in contribution in national income of agriculture sector is due to the speedy progress of non-agricultural sector. The development of agricultural sector in India has become a complex issue.

Employment :

It is the agricultural sector which provides maximum employment in India. At the time of independence, 72 % population was engaged in agriculture and allied (connected with) agricultural activities (cattle rearing, fisheries, forest products, poultry farming, etc.). After independence of India the development process has become speedier, specially development of industries and service sector achieved much faster growth than agriculture sector, therefore, employment dependency on agriculture has been reduced. In the year 2001-02 it was 58 % which came to 49 % in the year 2014-15 as an employment providing sector.

Export Income :

Indian agriculture helps our country to earn foreign exchange by exporting necessary exports and it helps to import necessary goods which are not produced or produced less in the country. During the independence period, the total contribution of India’s total export earnings of 70% has been obtained from agriculture. But, due to the development process, industries and service sector are at the top most and thus the contribution of agriculture sector in export earnings has reduced. It can be noted that in the year 2013-14, the contribution of agriculture in the total export earnings was 14.2%.

Living Standard

Agriculture is the basic support of the world’s population. Agriculture has continuously improved life of people in India also. Agriculture sector produces two types of crops: Food grains and Cash crops. All the cereals are included in food grains. Due to production of these food grains, India became self-sufficient. Cash crops are cotton, jute, ground nut, oil seeds, sugarcane, etc. are used as raw material. Present farmers are also engaged in production of vegetables, fruits, flowers etc. Therefore, it can be said that agriculture sector is satisfying requirement of agricultural goods of people. Average food grain availability was 395 grams per head per day in the year 1951 which increased to 511 grams in the year 2013 even there was rise in population. Therefore it can be said that agriculture sector is satisfying requirement of people in enough quantity and due to that average life span of people is also increased.

Growth of Agriculture Production :

Total production of agriculture in India has increased. As shown in the schedule production of food grains was 51 metric tons in 1951 which increased to 264.4 metric tons in 2013-14. That shows about 2.5 times rise of it. Where as production of sugarcane was 69 metric tons in 1951 which increased to 348 metric tons in 2013-14. That also shows rise about five times. Here, oilseeds and cotton show tremendous rise. In which oilseeds was 5.1 metric ton in 1951 which rose to 32.4 metric tons in 2013-14. That means a rise of 6.35 times and cotton was 2.1 metric bales in 1950-51. It rose to 36.5 metric bales in 2013-14. That mean rise of 17 times. That becomes possible only due to rise of cultivated land and rise of hectre wise productivity.

 Base for Industrial Development

Agriculture is a base for industrial sector of India. Agriculture sector provides required raw material to industrial sector, to do production as per capacity of industrial sector to attain possible development. In addition to that rural areas are becoming big market for the industrial products because about 69 % population of India live in rural areas. Here, it is noticeable, that 69% population of rural population has main source of income from agriculture. Due to that only rural areas are demanding industrial products like television, freeze, bike, mobile, etc.