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Role of Primary Sector

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XI B3 ABHIJEET M
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9 views

Role of Primary Sector

Uploaded by

XI B3 ABHIJEET M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ROLE AND IMPORTANCE OF

PRIMARY SECTOR IN INDIAN


ECONOMY
INTRODUCTION

• The primary sector is essential for the growth of India's economy, ensuring
the provision of daily necessities.

• India is projected to become the second-largest economy in the world by


2050.

• India's economy comprises three key sectors: agriculture (primary),


industrial (secondary), and services (tertiary).

• The primary sector includes activities like fishing, farming, mining, livestock,
and forestry, focusing on the extraction and production of raw materials.

• A significant portion of India's national income is derived from the primary


sector, which provides raw materials for other industries.
Primary Sector

•Primary Sector Dependence: The Indian economy heavily relies on the primary
sector, which includes activities such as agriculture, fishing, forestry, and mining.

•Agriculture's Role: Agriculture is the most significant primary sector activity, with
about 54% of Indians depending on agriculture and allied activities for their livelihood.

•Economic Contribution: Despite the high engagement, agriculture and allied sectors
contribute only about a quarter to the Indian economy.

•Low Earnings: Workers in the primary sector earn significantly less compared to those
in the industrial and service sectors, as primary sector activities are less profitable.

•Underutilized Potential: Many people turn to primary sector activities due to


unemployment, indicating that the primary sector in India has not reached its full
economic potential.
ROLE AND IMPORTANCE OF PRIMARY SECTOR

Employment: Agriculture employed


Contribution to National Income:
approximately 70% of India's
Agriculture's contribution to India's
population in 1947. By 2019, this
national income was over 50% in
figure had decreased to about 42.6%,
1947, but it has decreased to around
reflecting a shift towards the
18.4% by 2019-20.
manufacturing and service sectors.

Food Production: Agriculture is Raw Materials for Industries:


critical for food production, meeting Agriculture supplies raw materials to
the high and growing demand of various industries, including sugar,
India's population. In 2019-20, food jute, cotton textiles, and food
grain production was around 295.67 processing industries, which depend
million tonnes. on agricultural products.

Economic Backbone: Despite its


reduced share in national income,
agriculture remains the backbone of
the Indian economy, providing
essential resources and employment
to a large portion of the population.
Activities Under
Primary Sector

• Agriculture and allied activities

• Fishery

• Mining
Primary Sector of the Indian
Economy
Agricultural Significance: Agriculture is crucial in India, with many people working
as farmers growing crops like rice, wheat, and vegetables, and raising animals for
milk and meat.

Fishing Industry: Fishing is an important part of agriculture, with people catching


fish from rivers, lakes, and oceans, contributing to food supply and livelihood.

Farming Methods: Indian farmers use a mix of traditional methods and modern
techniques to grow crops and increase productivity.

Government Support: The government supports the primary sector through


subsidies, loans, and irrigation facilities, with programs like PMKSY and PMFBY
aimed at improving farming practices and providing financial assistance.

Livestock Farming: Livestock farming, including dairy and poultry, is a major part
of the primary sector, providing milk, meat, and other products, especially
significant in coastal areas for fishing activities.
• Jobs for Many People:
Benefits of • Helps the Economy
the Primary •
•
Food for Everyone
Supports Villages
Sector • Earns Money from Exports
• Protects the Environment
• Preserves Culture
• Brings People Together
• Opportunities for New Things
• Uses New Technology
Issues of the primary sector

Monopoly Power: Reliance on the


Export Revenue: Utilizing natural primary sector can lead to wealth
resources can generate significant inequality, with a few firms gaining
income and export revenue for monopoly power over raw materials
economies, as seen in oil-rich and paying workers minimal wages,
countries like Qatar, Saudi Arabia, and hindering economic development in
Norway. some resource-rich developing
countries.

Volatility: Primary products are


Dutch Disease: Profitable primary
subject to price and output volatility.
industries can divert resources away
Commodities like oil and food can
from manufacturing, leading to a lack
experience large price swings,
of economic diversification. When
impacting economies heavily reliant
raw materials deplete or industries
on these industries. The EU supports
decline, economies suffer, known as
its agriculture sector with subsidies to
'Dutch disease' or the resource curse.
mitigate these issues.

Deindustrialization: Developed
economies have seen a decline in
primary sectors, leading to structural
unemployment as these sectors take
a smaller share of the economy.
CONCLUSION
Economic Backbone: The primary sector is the backbone of the Indian
economy, employing a significant portion of the population and ensuring food
security, raw materials for industries, and export revenues.

Sector Composition: The primary sector includes agriculture, forestry, fishing,


and mining, playing a crucial role in providing employment and contributing to
GDP.

Declining Share: Although its share in GDP has declined due to the growth of
the secondary and tertiary sectors, the primary sector remains essential for
socio-economic stability, rural development, and poverty alleviation.

Government Support: Government subsidies are critical in enhancing


productivity, supporting farmers, and ensuring food security in the primary
sector.

Need for Improvement: Strengthening the primary sector through


technological advancements, better infrastructure, and supportive policies is
vital for inclusive and sustainable economic growth in India.
THANK YOU

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