Question

Explain the contribution of Indian agriculture to national income.

Answer 1

1. Agriculture is the backbone of the Indian economy and a major source of national income.
2. In 1950-51, agriculture contributed about 59% to national income; by 2018-19, its share was around 16% due to growth in industry and services.
3. Despite the declining share, agriculture’s contribution remains significant, as India is still predominantly an agricultural economy.
4. Agriculture provides employment to around 43% of the labour force, making it a major livelihood source.
5. It supplies raw materials to major industries like textiles, sugar, and oilseeds.
6. Agriculture supports food requirements and fodder for livestock, catering to the needs of a large population.
7. Agricultural exports of commodities like tea, coffee, spices, and marine products bring important foreign exchange.
8. It also acts as a source of labour supply to other sectors, including industry and services.