Is India still an agricultural economy?
Absolutely yes, India is still an agricultural economy directly or indirectly, Currently, as we speak, in India, about 50% of the population depends on the primary sector. Although it contributes only 18% of GDP.
Agricultural is not the only source of livelihood. It is the main source of food, livestock and fuel. This is the basic foundation of economic development of the country (India).
More than 60% of India’s land is arable, making it the second-largest country in terms of total arable land. Agricultural products of significant economic value include rice, wheat, potatoes, tomatoes, onions, mangoes, sugarcane, beans, cotton, etc.
In India, however, the sector-producing demand comes from the agricultural sector. So if there is a bad year in agriculture, it will affect the whole economy. For example, in the event of a drought, the demand for products such as televisions, bicycles, mobiles, etc. will be significantly reduced. People will only focus on basic necessities like food and home.
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So because of the huge impact of agriculture on the whole economy, I say India is still an agricultural economy.
Without agriculture, the government and the nation would have failed. Agriculture means cultivation of crops, as well as animal husbandry, poultry, dairy farming, fishing and forestry.
Yes, the services also sector contributes 54% of GDP. But tell me, if the farmers do not have enough harvesting or production, will the farmers go to hotels, on tour? Can the farmers buy expensive clothes and other things? Will their children be able to get higher education because they will need income then?
hence if the secondary and tertiary growth of the Indian economy is declining due to insufficient rainfall, it means that India is an agricultural economy.
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(If dependence on agriculture decreases, we can say that India is either an industrial economy or a service economy. India is on the right track.)
Note that these are my opinions which may or may not be correct
The important point here is the importance of agriculture that Indians enjoy from agriculture and it can other importance of any other agricultural countries like Ghana.
- It contributes to the national income
At present, it contributes about 24.4% of the national income.
- It is the main source of food
After the green revolution, we became self-sufficient in food production. The main crop represents 195 million tons together. Paddy is produced in India about 100 million tons. Wheat production in India is about 95 million tons.
- It even contributes to the development of the industry
It supplies raw materials for industries such as cotton textiles, jute, sugar, vegetables, oils, canned foods, cigars and rubber and many other food processing units.
- Way of earning
Land acquisition, the excise tax on agricultural products, taxes on agricultural machinery and equipment and various ways of providing income to the government
- Foreign trade income.
Many food and agricultural products like tea, tobacco, coffee, spices, cotton textiles, basmati rice etc. are exported to many countries to earn income from trade abroad. Agricultural exports represent about 70% of the total exports.
A lot of work in the national input transport of agricultural products and fertilizers and pesticides.
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- Agricultural Savings
Farmers earn a surplus income which contributes to the economy of the country through savings farms.
- Capital formation
Use agricultural machinery, tools help build the country’s capital. Surplus income is invested in the stock market and banks.
- Source of employment:
Providing jobs to crores of people in the form of agriculture, farmers, agro-related industries etc.
- Inflation stability;
When agriculture proves its self-sufficiency, it plays an important role in controlling inflation.
- International importance:
India is the first producer of peanuts and sugar. Second in the production of basic cotton and paddy. A third of tobacco. India is a pioneer in agricultural research.
A source of inspiration for Indian culture.
In India, their art, factions, festivals, their lives and clothing are all linked to agriculture
Indians cannot improve without farming