Importance of Agriculture in India

Importance of Agriculture in India
Importance of Agriculture in India

In this article, we are going to see the importance of agriculture in India.

What is Agriculture?

Agriculture is the process of producing numerous products such as food, feed, and fiber by growing certain plants and raising domesticated animals (livestock). The practice of agriculture is additionally referred to as “farming”.

Below are the importance of agriculture in India

Primary Source of occupation 

The primary source of occupation for many people is agricultureApproximately 70% of people depend directly on agriculture for their livelihood.  

Contribution to national income

For most developing countries, agriculture is the main source of national income. However, for developed countries, agriculture contributes a minor percentage to their national income.

Food and fodder supply

The agricultural sector provides fodder for domestic animals. The cow gives milk, which is a form of protective food. In addition, livestock also meets people’s dietary requirements.

See also: Types of agriculture loans available to Indian Farmers

International Trade

Agricultural products such as sugar, tea, rice, spices, tobacco, coffee, etc. are the main export items of the countries that depend on agriculture. If there is a smooth development in agriculture, imports decrease while exports increase considerably. This helps to reduce the unfavorable balance of payments of the countries, as well as to save currencies. 

Marketable Surplus

The growth of the agricultural sector contributes to the marketable surplus. Many people are engaged in manufacturing, mining, and other non-agricultural sectors as the nation develop. All of these individuals depend on the food products they could derive from the nation’s marketable surplus. As the agricultural sector develops, production increases and this leads to the expansion of the marketable surplus. This can be exported to other nations.

Source of Raw Material

Agriculture is the main source of raw materials for major industries such as cotton and jute cloth, sugar, tobacco, and edible and non-edible oils. In addition, many other industries, such as fruit and vegetable processing and rice husking, obtain their raw material mainly from agriculture.

See also: 12 types of farming methods in India


Large quantities of agricultural products are transported by rail and road from the farm to the factories. Mainly, internal trade is in agricultural products. Furthermore, government revenue is largely dependent on the success of the agricultural sector.

Currency exchange resources

The nation’s export trade is highly dependent on the agricultural sector. For example, agricultural products such as jute, tobacco, spices, oilseeds, raw cotton, tea, and coffee account for about 18% of a country’s total export value. This shows that agricultural products also continue to be an important source of foreign exchange for a country.

Great job opportunities

The construction of irrigation schemes, drainage systems, and other similar activities in the agricultural sector is important as it provides greater employment opportunities. The agricultural sector provides more job opportunities for the workforce that reduce the high unemployment rate in developing countries caused by the growing population.

Economic development

Since many people are involved in agriculture, the rate of development in the agricultural sector offers a progressive perspective for general economic development.

Savings source

Development in agriculture can increase savings. The wealthy farmers we see today started saving, particularly after the green revolution. This surplus amount can be further invested in the agricultural sector to develop the sector.

Food safety

A stable agricultural sector guarantees a nation of food security. The main requirement of any country is food security. Food security prevents malnutrition, which is traditionally considered one of the main problems facing developing countries.

See also:

Agriculture Land Measurement and Area Conversion Table

Horticulture crops  in India

Types of biofertilizers and its advantages