Agriculture constitutes the backbone of the Indian economy. It contributes around 32 per cent of the national income and provides employment to 70 per cent of Indian working force. Further, agricultural product constitutes 50 per cent of our exports and manufactures with agricultural content (cloth, sugar and manufactured jute) contributes another 20 per cent of India’s export.

Thus around 70 per cent of our exports consist of agricultural product. The role of agriculture in the industrial development of the economy is no less important. Agricultural sector supplies raw materials to the agro-based industries like sugar, jute, cotton, ground-nut and oilseeds. Failure of agricultural crops spells a disaster for the Indian industries.

Agriculture also directly and indirectly provides a market for the industrial products. Directly, agricultural sector consumes industrial products like chemical fertilizers, pesticides, insecticides and small tools and equipments.

Indirectly, the success in agricultural sector increases the purchasing capacity of the people to purchase industrial products.


Thus, agriculture occupies a pivotal position in the Indian economy. And, a rapid development of the economy depends on a smooth and sustained growth in the agricultural sector.