Monday, March 4, 2024

Role of Agriculture in the Economic Development of a Country

Introduction i

Agricultural isector iplays ia istrategic irole iin ithe iprocess iof ieconomic idevelopment iof ia icountry. iIt ihas ialready imade ia isignificant icontribution ito ithe ieconomic iprosperity iof iadvanced icountries iand iits irole iin ithe ieconomic idevelopment iof iless ideveloped icountries iis iof ivital iimportance. iIn iother iwords, iwhere iper icapita ireal iincome iis ilow, ithe iemphasis iis ibeing ilaid ion iagriculture iand iother iprimary iindustries. i iThe ihistory iof iEngland iis iclear ievidence ithat iAgricultural iRevolution ipreceded ithe iIndustrial iRevolution ithere. iIn iU.S.A. iand iJapan, ialso iagricultural idevelopment ihas ihelped ito ia igreater iextent iin ithe iprocess iof itheir iindustrialization. iSimilarly, ivarious iunder-developed icountries iof ithe iworld iengaged iin ithe iprocess iof ieconomic idevelopment ihave iby inow ilearned ithe ilimitations iof iputting iover-emphasis ion iindustrialization ias ia imeans ito iattain ihigher iper icapita ireal iincome. i“Thus, iindustrial iand iagricultural idevelopments iare inot ialternatives ibut iare icomplementary iand iare imutually isupporting iconcerning iboth iinputs iand ioutputs.” i

Muhammad Umar S/O Tariq Mahmood

 College Of Agriculture university of Sargofhai

Role iof iAgriculture iin iEconomic iDevelopment i

The iagriculture isector iis ithe ibackbone iof ian ieconomy iwhich iprovides ithe ibasic iingredients ito imankind iand inow iraw imaterial ifor iindustrialization.

Contribution ito iNational iIncome iHe ilessons idrawn ifrom ithe ieconomic ihistory iof imany iadvanced icountries itell ius ithat iagricultural iprosperity icontributed iconsiderably ito ifostering ieconomic iadvancement. iIt iis icorrectly iobserved ithat i“The ileading iindustrialized icountries iof itoday iwere ionce ipredominantly iagricultural iwhile ithe ideveloping ieconomies istill ihave ithe idominance iof iagriculture iand iit ilargely icontributes ito ithe inational iincome. iIn iIndia, istill, i28% iof inational iincome icomes ifrom ithis isector. i

Source iof iFood iSupply i

Agriculture iis ithe ibasic isource iof ithe ifood isupply iof iall ithe icountries iof ithe iworld—whether iunderdeveloped, ideveloping ior ieven ideveloped. iDue ito ithe iheavy ipressure iof ipopulation iin iunderdeveloped iand ideveloping icountries iand iits irapid iincrease, ithe idemand ifor ifood iis iincreasing iat ia ifast irate. iIf iagriculture ifails ito imeet ithe irising idemand ifor ifood iproducts, iit iis ifound ito iaffect iadversely ithe igrowth irate iof ithe ieconomy. iRaising isupply iof ifood iby ithe iagricultural isector ihas, itherefore, igreat iimportance ifor ithe ieconomic igrowth iof ia icountry.

Pre-Requisite ifor iRaw iMaterial i

Agricultural iadvancement iis inecessary ifor iimproving ithe isupply iof iraw imaterials ifor ithe iagrobased iindustries, iespecially iin ideveloping icountries. iThe ishortage iof iagricultural igoods ihas iits iimpact ion iindustrial iproduction iand ia iconsequent iincrease iin ithe igeneral iprice ilevel. iIt iwill iimpede ithe igrowth iof ithe icountry’s ieconomy. iThe iflour imills, irice ishellers, ioil i& idal imills, ibread, imeat, imilk iproducts isugar ifactories, iwineries, ijute imills, itextile imills iand inumerous iother iindustries iare ibased ion iagricultural iproducts.

Provision iof iSurplus i

The iprogress iin ithe iagricultural isector iprovides ia isurplus ifor iincreasing ithe iexports iof iagricultural iproducts. iIn ithe iearlier istages iof idevelopment, ian iincrease iin ithe iexports iearning iis imore idesirable ibecause iof ithe igreater istrains ion ithe iforeign iexchange isituation ineeded ifor ithe ifinancing iof iimports iof ibasic iand iessential icapital igoods.

Create iEffective iDemand i

The idevelopment iof ithe iagricultural isector iwould itend ito iincrease ithe ipurchasing ipower iof iagriculturists iwhich iwill ihelp ithe igrowth iof ithe inonagricultural isector iof ithe icountry. iIt iwill iprovide ia imarket ifor iincreased iproduction. iIn iunderdeveloped icountries, iit iis iwell iknown ithat ithe imajority iof ipeople idepend iupon iagriculture iand iit iis ithey iwho imust ibe iable ito iafford ito iconsume ithe igoods iproduced. i iTherefore, iit iwill ibe ihelpful iin istimulating ithe igrowth iof ithe inon- iagricultural isector. iSimilarly, iimprovement iin ithe iproductivity iof icash icrops imay ipave ithe iway ifor ithe ipromotion iof iexchange ieconomy iwhich imay ihelp ithe igrowth iof ithe inonagricultural isector. iPurchase iof iindustrial iproducts isuch ias ipesticides, ifarm imachinery, ietc. ialso iprovides ia iboost ito iindustrial idead iout. i iHelpful iin iPhasing iout iEconomic iDepression: iDuring ithe idepression, iindustrial iproduction ican ibe istopped ior ireduced ibut iagricultural iproduction icontinues ias iit iproduces inecessities iof ilife. iThus, iit icontinues ito icreate ieffective idemand ieven iduring iadverse iconditions iof ithe ieconomy.

Source iof iForeign iExchange ifor ithe iCountry

 iMost iof ithe ideveloping icountries iof ithe iworld iare iexporters iof iprimary iproducts. iThese iproducts icontribute i60 ito i70 ipercent iof itheir itotal iexport iearnings. iThus, ithe icapacity ito iimport icapital igoods iand imachinery ifor iindustrial idevelopment idepends icrucially ion ithe iexport iearning iof ithe iagriculture isector. iIf iexports iof iagricultural igoods ifail ito iincrease iat ia isufficiently ihigh irate, ithese icountries iare iforced ito iincur ia iheavy ideficit iin ithe ibalance iof ipayments

Contribution ito iCapital iFormation

 iUnderdeveloped iand ideveloping icountries ineed ia ihuge iamount iof icapital ifor iits ieconomic idevelopment. iIn ithe iinitial istages iof ieconomic idevelopment, iit iis iagriculture ithat iconstitutes ia isignificant isource iof icapital iformation.

Contribution iof iAgriculture ito iEconomic

 iGrowth iSimon iKuznets iidentifies ifour ipossible itypes iof icontribution ithat ithe iagricultural isector iis icapable iof imaking ifor ioverall ieconomic idevelopment. i

1. iProduct icontribution, ii.e., imaking iavailable ifood iand iraw imaterials. i

2. iMarket icontribution, ii.e., iproviding ithe imarket ifor iproducer igoods iand iconsumer igoods iproduced iin ithe inon-agricultural isector.

 i3. iFactor icontribution, ii.e., imaking iavailable ilabor iand icapital ito ithe inon-agricultural isector. i

4. iForeign iExchange icontribution.

Employment iOpportunities ifor iRural iPeople i

Agriculture iprovides iemployment iopportunities ifor irural ipeople ion ia ilarge iscale iin iunderdeveloped iand ideveloping icountries. iIt iis ian iimportant isource iof ilivelihood. iGenerally, ilandless iworkers iand imarginal ifarmers iare iengaged iin inon-agricultural ijobs ilike ihandicrafts, ifurniture, itextiles, ileather, imetal iwork, iprocessing iindustries, iand iin iother iservice isectors. iThese irural iunits ifulfill imerely ilocal idemands. iIn iIndia, iabout i70.6% iof itotal ilabor iforce idepends iupon iagriculture.

Improving iRural iWelfare

 iIt iis itime ithat irural ieconomy idepends ion iagriculture iand iallied ioccupations iin ian iunderdeveloped icountry. iThe irising iagricultural isurplus icaused iby iincreasing iagricultural iproduction iand iproductivity itends ito iimprove isocial iwelfare, iparticularly iin irural iareas. iThe iliving istandard iof irural imasses irises iand ithey istart iconsuming ia inutritious idiet iincluding ieggs, imilk, ighee iand ifruits. iThey ilead ia icomfortable ilife ihaving iall imodern iamenities—a ibetter ihouse, imotorcycle, iradio, itelevision iand iuse iof ibetter iclothes.

Agriculture iSector iProvides iFunds ifor iCapital iFormation iin iMany iways ias

 i1) iAgricultural itaxation. i

2) iExport iof iagricultural iproducts. i

3) iCollection iof iagricultural iproducts iat ilow iprices iby ithe igovernment iand iselling iit iat ihigher iprices. iThis imethod iis iadopted iby iRussia iand iChina.

 i4) iLabor iin idisguised iunemployment, ilargely iconfined ito iagriculture, iis iviewed ias ia isource iof iinvestible isurplus. i

5) iTransfer iof ilabor iand icapital ifrom ifarm ito inon-farm iactivities ietc.


 iFrom ithe iabove-cited iexplanation, iwe iconclude ithat iagricultural idevelopment iis ia imust ifor ithe ieconomic idevelopment iof ia icountry. iEven ideveloped icountries iemphasize iagricultural idevelopment. iAccording ito iMuir, i“Agricultural iprogress iis iessential ito iprovide ifood ifor igrowing inon-agricultural ilabor iforce, iraw imaterials ifor iindustrial iproduction iand isaving iand itax irevenue ito isupport ithe idevelopment iof ithe irest iof ithe ieconomy, ito iearn iforeign iexchange iand ito iprovide ia igrowing imarket ifor idomestic imanufactures.”

References i iRole iof iAgriculture iin iThe iEconomic iDevelopment iof ia iCountry. iInternational iJournal iof iAgriculture iand iFood iScience iTechnology, iKekana iMaruti iArjun iIndian iAgriculture iStatus, iImportance iand iRole iin iIndian iEconomy.

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