Role of Agriculture Sector Video Lecture | Business Economics for CA Foundation

first we'll take up the agriculture
sector its role in India its growth and
the problems so agriculture role in
India what role it plays how it is
important first and foremost it is
important because it provides employment
then India attained independent
independence the main occupation of the
people was agriculture they were into
farming nearly 72% of the population was
engaged in farming slowly as the other
sectors proved that percentage has
fallen down 49 percent of the workforce
is involved in agriculture work though
in that years we may say that the
absolute number has increased but this
is because the population has increased
many folds so the number of people that
are working in agriculture sector has
increased but the percentage of the
total population that works in the
agriculture has fallen down another very
important thing is that people working
on farms earlier a large percentage of
people was working on farms now the
people working on farms has come down
and the people who are associated with
the agriculture work other than farming
like warehousing storage company
transportation all this has increased so
it is a big employment generator
agriculture sector fourteen nine percent
of our working force is working in
agriculture sector now when it is an
employment generator it is an income
generator as well share in national
income at the time of Independence since
majorly all the people were involved in
the agriculture sector the income that
was coming from it was also high 55
of the - my income was coming from
agriculture sector but now after sixty
kids it has fallen considerably only 14%
of the income we get from the
agriculture sector what does that mean
it means that the other sectors have
grown tremendously and the income that
is generating from the agriculture
sector has fallen so we can say that
employment is 49 percent and the share
in GDP of Agriculture is 14 percent
nearly 50 percent population is working
but the income that is generated is 14
percent so its share in national income
is 14 percent but still it is very
important agriculture is important
because it is a supporting industry
supporting industry means that it
provides support to other industries
there are many industries that are based
on agriculture based products they need
their input from agriculture like sugar
industry the main input is sugarcane so
they are dependent on agriculture
textile they need quarter they depend on
agriculture so they are similarly there
are many industries which are dependent
on agriculture paper they also depend on
wood they also depend on agriculture
similarly it provides inputs to many
other industries like coffee rubber and
leather all these things are also
dependent on agriculture farmers income
many other industries like tractor
industry fertilizer industry they all
depend on the income of the farmer if
the farmer has is doing well if he is
earning well he'll buy more tractors you
use more fertilizers so these industries
also depend on the income of farmer if
Palmer is doing well these industries
will also prosper if agriculture
doing well otherwise they'll also face
problems
share in foreign trade what share
agriculture has in foreign trade now
when I drop a foreign trade I mean
export and import export of Agriculture
produce and import of Agriculture
produce a droid sports agro exports
means the goods that we are selling to
foreign countries an agro import means
the agriculture goods that we are buying
from other countries so aggravate sports
earlier 1950s we were mainly exporting
cotton textiles jute and tea and other
than that we were also exporting cashew
kernels oils and pulses etc we were also
exporting this sotor hit our share in
agriculture during independence was 70%
so whatever was being exported or
whatever he was selling abroad was 70%
of it was agriculture goods amongst
which 50% was cotton textiles jute and
tea
this was 50% and the rest was 20% other
things but over the years it has fallen
considerably now we export only the
total percentage that of Agriculture
goods that goes into the export of is
12% 12% agricultural goods we export now
which is very less because it is a main
occupation mostly people are working in
that field so we should be exporting
more but now it has fallen only 12% we
are exporting and for that the
government has launched special
agriculture product
skee special agriculture products that
means products other than food grains
like flowers vegetables daily dairy
products all this production should be
increased and we should aim at exporting
these things because we are naturally
geographically we are very diverse and
we have conditions that are favorable
for growing different types of things so
we should also aim at increasing the
production of flora culture horticulture
pissy culture of the sea culture is
production of fishes and dairy products
all this we should aim at increasing for
this government has launched SATs
abscess special agriculture product ski
it has been launched to increase export
to increase export saps has been
launched in the year 2013 and 14 now
this was export what we were selling
abroad now let us talk about agro import
importance what we are buying from
abroad from foreign countries earlier
then we had attained independence we
were not even sufficient enough we were
not capable enough to produce goods that
was sufficient to cater to our own
population that is the food grains that
were available were very less and the
population was large so there was a
crisis of Agriculture goods at that time
we were exporting importing food grains
pulses edible oils etc from abroad
whenever there was a shortage so nearly
25 percent of our agricultural import
constituted of Agriculture goods but now
as time has passed we have become
self-sufficient and now we import only
3% of Agriculture boots this is because
of the green revolution that was
introduced about which we will study
later all these things have made us
self-sufficient it is only when the
monsoon is not good when the weather is
not favorable and when they are draughts
as conditions lie
this then we have to import like
recently because and the monsoon has not
been good so the production of pulses is
less so we will have to import them from
outside but it is on a very rare this is
this happens rare cases are there when
the production is not good otherwise we
have become self-sufficient and we have
only importing 3% of the total produce
so agriculture plays an important role
in foreign trade as well then it is a
supplier of food and for the food it
provides for people further it provides
for livestock like cattle eels all those
things so it provides further for
animals
savings of capital it is also an area
where capital is less required
investment required is less that is it
is a sector with low capital output
ratio low capital output ratio is for
producing each unit of output the
capital that is required is less in
comparison to industries where for
producing each unit of output you need
more capital but where as an agriculture
you need less capital so it is a sector
which saves on capital then secondly it
is a sector which provides you with
great employment opportunities also
because that is why nearly half of our
population is working in this sector 49
percent employment it provides
contribution to government's revenue it
is an important source of revenue no it
is not agriculture is a very protected
industry sector you can say in our
economy because farmers are considered
to be poor the income is not even taxed
so it is from a revenue point of view it
is not a big sector important sector but
it is important well
it is in distress when the farmers and
this stress are in distress the
government has to support them they have
to waive of their loans they have to
provide them credited with no interest
rates and all these support that the
government has to provide them makes the
government going deficit so that point
of view it is important for the
government not from the point of view of
revenue generation but from the point of
view of supporting them in distress
distress that is when the government
budgets are affected so the influence
government deficit they do not influence
government income or revenue now what is
important is it is agriculture is a
sector which can solve our problem of
urban congestion because we have not
developed it properly there has been a
people are coming from rural areas they
are shifting to births towards urban
area because they cannot use their
skills there they are not even skilled
so they are coming to urban areas so if
we have a proper development of the
agriculture sector where the people
rural people can use their efforts there
only it would be better can solve the
problem of urban congestion and brain
drain also it is not that the rural
people are not skilled but it is that
they do not have proper knowledge if we
provide them knowledge if you provide
them skill then this problem can be the
problem of brain drain of youths coming
from rural to urban areas and population
increasing of urban areas can be resort
if they have proper growth takes place
of the factor culture sector so we have
seen how it is important what role it
plays in Indian economy in plays that it
is an employment generator 49 percent
population workforce is employed in
agriculture sector share in national
income
earlier it was 55 percent but now it is
14 percent it supports other industries
like sugar industry textile industry all
these industries support their providing
input
share in foreign trade earlier it was a
major exporter now it has fallen down we
have introduced saps to promote exports
and imports are negligible because we
have become self-sufficient to the
supplier of food for population folder
for livestock for animal the savings of
capital they have less capital output
ratio less capital is required for
producing per unit of output
contributions to government's revenue
not much but deficit is effects and it
can help if grown properly improper care
is taken it can help the solve problem
of urban congestion and brain injury so
this is the role that agriculture plays
in India