Indian railway along with the state transport system also earn a handsome revenue as freight charges for agricultural products, both-semi finished and finished ones. Private sector has been playing dominant role in respect of road transport, water transport etc. India enjoys first position in the world as far as the production of tea and groundnuts are concerned. Substantial increase in the production of food grain like-rice, wheat etc. Agricultural influence on national income: The contribution of agriculture during the first two decades towards the gross domestic product ranged between 48 and 60%.
The rich farmers we see today started saving particularly after green revolution. A good crop also brings a good amount of finance to the Government for meeting its planned expenditure. Share of Industry sector has also increased to 24. The farmers in India maintain mixed farming system i. The country also has substantial reserves for the same. Modern methods of cultivation were introduced in the country.
Due to this, large developing countries like India having potentialities of industrial development are trying to diversify their production structure and promote the exports of manufactured goods even though this requires the adoption of protective measures in the initial period of planning. Initially- cereals and proteins, then- vegetables esp. They lead a comfortable life having all modern amenities—a better house, motor-cycle, radio, television and use of better clothes. Therefore, economic development relies on the agricultural growth rate. Today, processing, marketing, and distribution of crops and livestock products etc.
These measures include both credit and non-credit measures. Second position production is rice and staple cotton. Agriculture is the soul of the Indian economy; it said by the Mahatma Gandhi. India exports agricultural products like tea, coffee, sugar, tobacco, spices etc and earns foreign currency. But this situation is not likely to remain so easy in the years to come.
Contribution to Capital Formation: Underdeveloped and developing countries need huge amount of capital for its economic development. It also maintains a balance of payments and make our country self-sufficient. From above mentioned facts it is very clear that in spite of industrial development still agriculture is the backbone of the Indian economy. The livestock serve the farmers in different ways. Pakistanis are mostly a farming community.
The main requirement of any country is food security. The almost population depends on the agricultural activity because their livelihood depends upon the agriculture. In the initial stages of economic development, it is agriculture that constitutes a significant source of capital formation. However this has not been possible due to some political reasons. Before Independence Day, we suffered from the shortage of food, but after independent, we got the Green Revolution in agriculture, which made us self-sufficient in food production. The Five-year Plans accorded priority to the agricultural sector.
The families especially the landless which own animals are better placed than those who do not. Industrial Development: During the pre-independence period, the private sector has played a responsible role in Indian economy where it set up and expanded cotton and jute textiles, sugar, paper, edible oil, tea etc. Since agricultural market provides the backward linkage to Agro-based industries, it has to be viewed holistically as a seamless farm-to-fork value chain, comprising farming, wholesaling, warehousing, logistics, processing, and retailing including exports. However, for the developed countries, agriculture contributes a smaller per cent age to their national income. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level. Also, inflation increased for Protein- based items due to rising income levels and subsequent increase in consumption. Progress is good but still initial conditions for growth have not yet been achieved.
This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange. They are forced to sell to them as they cannot afford to wait for long after harvesting their crops. The more developed a country is the lesser is the contribution of agriculture. After green revolution the purchasing power of the large farmers increased due to their enhanced income and negligible tax burden. An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India. Pack animals like camels, horses, donkeys, ponies, mules etc are being extensively used to transport goods in different parts of the country in addition to bullocks.