Unit 3
Unit 3
ECONOMY
Structure
3.0 Objectives
3.1 Introduction
3.5 LetUsSumUp
3.6 FCeyVVords
3.0 OBJECTIVES
After going through this unit, you will be able to:
3.1 INTRODUCTION
The Agriculture in India is basically a part of life; it is a system of work and
culture. None of the fanner of the country likes to keep out land fallow, whether
it is profitable 'Ornot. Fanners spend maximum time in the field. Earlier the
country was self-dependent and was termed as 'Golden Bird'. However, the
situation changed with the arrival of Mug ha Is and Britishers and their colonial
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policies. After independence our main problem was how to feed to people. Then Agriculture and
Indian Economy
our planners and policy makers, agricultural scientists and economists decided to
produce more food grains in order to achieve self-sufficiency. The period of late
mid sixties is known as the green revolution period. Dr. Swaminathan and Dr.
Borlag along with other agricultural scientists took a challenge to enhance the
production and they succeeded. After overcoming' the food problem by producing
sufficient paddy and wheat, the next aim was to become self sufficient in pulses,
oilseed and milk, with quality products. Currently, the country is in a position to
export the agricultural produce and products. Now the country is economically
sound as the per capita income of the people has increased but still it is not fully
satisfactory. The farmers are yet to undertake cultivation in a professional way.
Many industries have come up with new agriculture products. Now the question
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is how to make the best use of alternative available. This unit discusses the role,
\<importance and performance of agriculture in India.
soul together. A majority of farmers were just able to take out few leaves of
.subsistence from agricultural activities, it was only after the advent of planning
(and more precisely after the advent of green revolution in 1966) that some
farmers started adopting agriculture on a commercial basis.
At the time of First World War, agriculture contributed two third of national
income. However, after the initiation of planned economic development, the share
of agriculture has gradually and regularly declined on account of the development
of the secondary and tertiary sectors of economy. The share of agriculture in GDP
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I
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Indian Agriculture: at factor. cost was 56.5 percentin 1950-51 declined steadily to 18 percent in t
An Overview
2006-07. The declining share of agriculture in national income is often taken as an
indicator of economic development. Normally in developed countries, the economy
is less dependent on agriculture ~ compared to under developed countries.
3.3 8
IMPORTANCE OF AGRICULTURE IN
INDIAN ECONOMY
Indian agriculture is incomparable in Indian economy. Though its contribution is
diminishirig due to higher growth in secondary arid tertiary sectors, yet, more than
60 per cent working population is engaged in agriculture. We get raw material
from our agriculture for industries. Agriculture provides food to the entire population
and feed and fodder to livestock .. Agriculture is also an important source of
finance of central and state governments. Indian agriculture has an honourable
place intemationallevel earning valuable foreign exchange for the country..
The trend in area, production and productivity of foodgrains f~r the last five
decades are given below:
The foodgrain production in India Was increased from 50.82 million tonnes in
1950-51 to 208.60 million tonnes in 2005-06. The worst drought of 2002-03
pulled down the country's foodgrains production to 174.19 million tonnes in the I
I
lowest in the last ten years. However Indian agriculture has made a smart
recovery with production of208.60 million tonnes in 2005-06 (Table 3.1).
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Since 1950-51, the productivity has increased-around four times whereas the.
area has increased 1.5 times. In absolute terms, the area and production of
foodgrains has increased by 24.28 million hectare and 157.78 million tonnes in
.2005-06. The productivity of total food grain is increased by 3.27 times.
The irrigated area, which was only 18.1 per cent, rose to about 44 per cent in
2003-04.
Decadal change in area, production, productivity and per cent area irrigated of
important cereals are given in the Table 3.2.
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Table 3.2: Area, Production, Productivity and Percent Irrigated Area of Agriculture and
Indian Economy
Major Crops
The overall production of rice stood at 91.79 million tonnes in year 2005-06. It
was 71.21 million tonnes more than the output in 1950-51 (20.58 million tonnes).
Wheat production also made a smart recovery from early years. Being major
Rabi crop, wheat production increased to 69.35 million tonnes in 2005-06 over
6.46 million tonnes in 1950-51.
The total jowar production was 7.24 million tonnes in 2005-06, against 5.50
million tonnes in 1950-51. The production ofbajra increased from 2.60 million
tonnes in 1950-51 to 7.68 million tonnes in 2005-06 (Table 3.2).
Similarly, Kharif maize did well with the record production of 14.71 million tonnes
in 2005-06 and surpassed the target of 11.70 million tonnes.
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Indian Agriculture: Ragi crop grown mainly in Kharif season, accounted for the production of2.0 1
An 'Overview
million tonnes, which was less than the target of2A6 million tonnes in 2003-04.
Jowar production was 7.24 million tonnes, which was less then the expectation.
After a good Kharif harvest, the country also had satisfactory performance of
Rabi crops. The area under almost all Rabi crops had increased.
............................................................................................................... ; ..
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2) List out the possible factors playing important role in agricultural development.
....... .• ~.•
lA - - - - - - -
Note: A=Area in million hectare, P=Production in million tonnes, Y= Yield in Kg/ha,
IA= Per cent irrigated area.
Source: 'Agricultural Statistics at Cl Glance- 2006-07. DES Govt. of India.
lA - - - - - 1.4 -
Sunflower A ~ - 0.12 0.12 1.63 1.07 2.34
lA - - - - - 27.6 -
Note: A=Area in miHion hectare, P=Production in million tonnes, Y= Yield in Kg/ha,
lA = Per cent irrigated area.
Source: Agricultural Statistics at a Glance- 2006-07. DES Govt. of India.; 47
Indian Agriculture: Reports of accelerated area under oilseeds; particularly rapeseed and mustard
An Overview
were made by various states. Oilseeds acreage went up by 17.13 million hectares.
Rapeseed and mustard were sown in 7.28 million hectares with the area under the
crop rising especially in Rajasthan and Madhya Pradesh (Table 3.4). Sunflower
is mainly grown in Andhra Pradesh and Karnataka States.
The total production of nine major oilseeds (groundnut, caster, sesamum, niger,
rapeseed and mustard, linseed, safflower, sunflower and soybean) was a high of
27.98 million tonnes. It exceeded the previous production of24.75 million tonnes
in 1998-99. The total ground nut production was 7.99 million tonnes. Sunflower
production was only 1.44 million tonnes. Soybean production was at a new height
of8.27 million tonnes (Table 3.4,.
The average annual growth rate of agriculture fell from more than 4 per cent
during 1992-93 to 1996-97 to less than two per cent during the period 1997-98
to 2002-03 and it remained low.
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Beside a rich biodiversity-in fruits, vegetables and medicinal crops exist in the
country, the excellent human resource in research and development with large
network of research on horticulture under the NARS (National Agriculture
Research System) has been an asset. It helped in the development and transfer of
technologies to the farmers, with the result that the country is now a second
largest producer of fruits and vegetable in the world. The total production of fruits
has gone up from 32.96 to 45.2 million tonnes and vegetables from 63.8 to 84.8
million tonnes over a period of ten years 1992-93 'to 2002-03 registering an
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increase of37 per cent and 33 per cent, respectively. The increase in production Agriculture and
Indian Economy
is both on account of increase in area and productivity,
. Hilly regions.and lands adjoining to forests and vallies where crop production has
less feasibility,livestock raising are natural alternatives. The favourable temperature
and availability of green edible biomass can be efficiently routed food chain
through the livestock particularly in the hilly regions. The goat popul~tion is second
only to China, while the sheep population is third, after China and Australia. India
occupies 6th position regarding chicks with the world led by China.
The world milk production was estimated at 613 million tonnes in 2004 and has
been growing since on Compound Annual Growth Rate (CAGR) of 1.1 per cent.
India not only ranks first in milk production with 88.2 million tonnes per annum in
2003-04 but is also growing at a CAGR of 4 per cent. India contributes 4 million
tonnes to the worlds' incremental production of7.5 million tonnes. In spite of the
high growth rate, the per capita availability of milk in India is 229 grams per day
which is lower than the world average of285 grams per day. In India, buffalo
milk accounts for 57 per cent of the total milk produced.
The fish production of the country has increased from 0.75 million tonnes in
1950-51 to over 6.4 million tonnes in 2002-03, an over eight folds increase. At
the same time the share of inland fisheries has gone up from 29 per cent to over
50 per cent.
The average growth rate of over 6 per cent per year in the last two decades is the
testimony of the potential the sector possesses. Present fresh water aquaculture
production is about 2.4 tonnes / hectare. Fresh water aquaculture accounts for 95
per cent of the total aquaculture production and about 40 per cent of the total fish
production of the country. It has been possible through phenomenal growth in
development of fish farming in small inland water bodies, i.e. ponds and tanks. 49
Indian Agriculture: Development of several epoch making technologies and their effective dissemination
An Overview
to the receptive farmers can very well take credit for achieving such of status.
• Agricultural Development
• Marketing of Produce
The area of total foodgrains which was 97.32 million hectare in 1950-51 rose to
121.60 million hectare in 2005-06. The production and productivity increased by
four and three and a half times over base year, respectively. Out of the major
cereals, rice, wheat and maize have increased to commendable-position in respect
to area, production and yield. A significant growth has been observed also in area,
production and productivity of oilseeds and pulses but, it was comparatively less
to cereals.
2) The pulses and oilseeds production touched to 13.39 and 27.98 million
tonnes in 2005-06, respectively.
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