UNIT 3
INDIAN ECONOMY
1. Support to National Income:
From the very beginning, agriculture is contributing a nain portion to our worth . In 1950-51, agriculture and allied activities contributed about 59 regardless of the total value . Although the share of agriculture has been declining gradually with the expansion of other sectors but the share still remained very high as compared thereto of the developed countries of the earth . As an example , the share of agriculture has declined to 54 %in 1960-61, 48 %in 1970-71, 40 %in 1980-81 then to 18.0 %in 2008-09, whereas in U.K. And U.S.A. Agriculture contributes only 3 refers back to the worth of these countries.
2. Source of Living:
In India over two-thirds of our working population are engaged directly on agriculture and also similarly depend for his or her living. According to an estimate, about 66 %of our working population is engaged in agriculture at this as compared thereto of two to 3 %in U.K. And U.S.A., 6 %in France and 7 %in Australia. Thus the use pattern of our country is extremely much common to other under-developed countries of the earth .
3.Main Source of Food Supply:
Agriculture is that the most source of food supply because it's providing regular supply of food to such a huge size of population of our country. It has been estimated that about 60 head consumption is met by agricultural products.
4. Contribution of Agriculture for Industrial Development:
Agriculture in India has been the nain source of supply of raw materials to varied important industries of our country. Cotton and jute textiles, sugar, vanaspati, edible oil plantation industries (viz. Tea, coffee, rubber) and agro-based cottage industries are also regularly collecting their raw materials directly from agriculture.
About 50 %of income generated within the manufacturing sector comes from of those agro-based industries in India. Moreover, agriculture can provide a marketplace for industrial products as increase within the extent of agricultural income may cause expansion of marketplace for industrial products.
5. Commercial Value:
Indian Agriculture is playing a very important role both within the interior and external trade of the country. Agricultural products like tea, coffee, sugar, tobacco, spices, cashew-nuts etc. are the foremost items of our exports and constitute about 50 %of our total exports. Besides manufactured jute, cotton textiles and sugar also contribute another 20 regardless of the total exports of the country. Thus nearly 70 %of India’s exports are originated from agricultural sector. Further, agriculture helps the country in earning precious exchange to satisfy the required import bill of the country.
6. Source of state Earning:
Agriculture is one of the nain sources of revenue to both the Central and State Governments of the country. The govt. Is getting a substantial income from rising land revenue. Another sectors like railway, roadways are also deriving an honest a neighborhood of their income from the movement of agricultural goods.
7. Role of Agriculture in Economic Planning:
The prospect of designing in India also depends much on agricultural sector. An honest crop always provides impetus towards a planned economic development of the country by creating a much better business climate for the transport system, manufacturing industries, internal trade etc.
A good crop also brings an honest amount of finance to the govt. For meeting its planned expenditure. Similarly, a nasty crop cause an entire depression in business of the country, which ultimately cause a failure of economic planning. Thus the agricultural sector is playing a very important role during a rustic like India and thus the prosperity of the Indian economy still largely depends on agricultural sector. Thus from the foregoing analysis it's observed that agricultural development is that the essential precondition of sectoral diversification and development of the economy.
An Enlarging quatity of agricultural output is extremely much essential in India for:
(i) Enlarging supply of food and raw materials at non-inflationary prices;
(ii) Widening the local marketplace for industrial products through higher purchasing capacities within the agricultural sector;
(iii) Facilitating inter-sectoral movement of capital needed for industrial development along-with infra-structural development;
(iv) Enlarging exchange earnings through Enlarging volume of agricultural exports.
During Independence there was very low productivity per hectare and per worker.
However, the previous trend of stedy agriculture was completely changed because of the introduction of economic planning since 1950-51, and with special emphasis on the agricultural development, after 1962.
(i) A slow and stable increase within the world under cultivation is noticed.
(ii) a substantial growth within the food crops is marked.
(iii) During the plan period there was a unbroken increase within the yield per hectare.
Though industry has been playing an important role in Indian economy, still the contribution of agriculture within the event of Indian economy cannot be denied.
This can be measured and gauged by the next facts and figures:
1. Agricultural influence on national income:
The contribution of agriculture during the first 20 years towards the gross domestic product ranged between 48 and 60%. Within the year 2001-2002, this contribution declined to only about 26%.
2. Agriculture plays vital role in generating employment:
In India a minimum of two-thirds of the working population earn their living through agricultural works. In India other sectors have failed generate much of employment opportunity the growing working populations.
3. Agriculture makes provision for food for the ever Enlarging population:
Due to the excessive pressure of population labour surplus economies like India and rapid increase within the demand for food, food production increases at a fast rate. The prevailing levels of food consumption within the se countries are very low and with slightly increase within the capita income, the demand for food rise steeply (in other words it are often stated that the income elasticity of demand for food is extremely high in developing countries).
Therefore, unless agriculture is during a position to continuously increase it marketed surplus of food grains, a crisis is wish to emerge. Many developing countries are passing through this phase and through a bid to ma the Enlarging food requirements agriculture has been developed.
4. Contribution to capital formation:
There is general agreement on the necessity capital formation. Since agriculture happens be the foremost important industry in developing country like India, it can and must play an important role in pushing up the speed of capital formation. If it fails to undertake to to so, the whole process economic development will suffer a setback.
To extract surplus from agriculture the next policies are taken:
(i) Transfer of labour and capital from farm non-farm activities.
(ii) Taxation of agriculture should be in such how that the burden on agriculture is greater than the govt. Services provided to agriculture. Therefore, generation of surplus from agriculture will ultimately depend on Enlarging the agricultural productivity considerable
5. Supply of staple to agro-based industries:
Agriculture supplies raw materials to varied agro-based industries like sugar, jute, cotton textile and vanaspati industries. Food processing industries are similarly enthusiastic to agriculture. Therefore the event of these industries entirely depends on agriculture.
6. Marketplace for industrial products:
Increase in rural purchasing power is extremely necessary for industrial development as two- thirds of Indian population sleep in villages. After revolution the purchasing power of the huge farmers increased because of their enhanced income and negligible tax burden.
7. Influence on internal and external trade and commerce:
Indian agriculture plays a crucial role in internal and external trade of the country. Internal trade food-grains and other agricultural products helps within the expansion of service sector.
8. Contribution in government budget:
Right from the first Five Year Plan agriculture is taken under consideration because the prime revenue collecting sector for the both central and state budgets. However, the governments earn huge revenue from agriculture and its allied activities like cattle rearing, farming , poultry farming, fishing etc. Indian railway in conjunction with the state transport system also earn a handsome revenue as freight charges for agricultural products, both-semi finished and finished ones.
9. Need of labour force:
A large number of skilled and unskilled labourers are required for the event works and in other fields. This labour is supplied by Indian agriculture.
10. Greater competitive advantages:
Indian agriculture features a price advantage in several agricultural commodities within the export sector thanks to low labour costs and self- sufficiency in input supply.
(i) Before Independence:
It may be seen that in the quantity 1901 to 1947, agricultural production declined.
The population increase by 38 %while the increase in cultivated area was to the extent of 18 percent. The annual production of food grains and pulses remained almost constant.
(ii) Post Independence Period:
The process of reduce in productivity has continued within the post-independence period, as compared to the pre-1939 period. The standard yield of cereals per acre during 1946-47 to 1949-50 had declined from 619 to 565 lbs. Rangnekar found that the number of output in India declined from 0.9 metric tones in 1938-39 to 0.86 metric tones per hectare in 1951.
1. There was a mild rise in average yield per hectare.
2. There was a mild rise in area under cultivation.
3. Because of increase in area and increase in yield per hectare, total production of the crops recorded a rising trend.
(iii) Trends in Food-grains Production:
The increase in agricultural production features a crucial impact on the economic development of a country . In India, the increase within the assembly of foodgrains has been given in table 2.
Trends in Production of Foodgrains
It reveals from table 2, that within the last fifty two years food-grains production has increased by about quite 3 times . The increase within the assembly of rice was fourfold while it had been over ninefold in respect of wheat. Here, it's worth noting that there exists wide variations within the assembly of food-grains.
During the course of first two five years plans, the assembly of food-grains was on the increase but within the third five year plan it's shown a declining trend. Further, within the course of three annual plans, production of food-grains has increased to a superb extent. But within the next five year plan periods, the speed of growth of agricultural production was favourable.
According to the first column of the table, the assembly of cereals was 468 lakh tones in 1949-50 which turned to double i.e. 947 lakh tones in fourth five year plan. During the sixth plan period, its production was recorded 1340 lakh tones and further 1719 lakh tones ending the last year of eighth five year plan.
The production of pulses was registered at 132 lakh tones in 1995-96 which was 110 lakh tones during first plan period. This crop witnessed very deep fluctuations during second and third plan period. Thus, total production of food-grains was recorded 648 lakh tones in first plan period which rose to 1047 lakh tones in fourth plan, 1232 lakh tones in fifth plan, 1462 lakh tones in sixth plan, 1706 lakh tones in seventh plan and 1851 lakh tones in 1995-96.
Regarding trend of rice and wheat, it had been 276 lakh tones and 86 lakh tones in first plan which increased to 441 lakh tones and 218 lakh tones in fourth plan and further to 798 lakh tones and 628 lakh tones respectively in 1995- 96. During 2002-03, production of total food-grains 1742 lakh tones, pulses 111 lakh tones, rice 727 million tones and wheat 651 million tones.
This data indicates that production of food-grains has increased considerably over the years but in terms of percentage, increase in production varies from one plan period to a special plan period.
(iv) Non-Food Grains:
Production of Non-Foodgrains in IndiaProduction of Non-Foodgrains in India
The production of cotton was 30 lakh bales in 1950-51 which increased to 80 lakh bales in 1980-81, 97 lakh bales in 1991-92 and 131 lakh bales in 1995-96. Regarding jute, its production was 33 lakh bales at the start of first five year plan in 1950-51 which rose to 68 lakh bales in 1980-81, 103 lakh bales in 1990-91 but its production reduced to 89 lakh bales in 1995-96.
The production of sugarcane has shown growth because it had been 570 lakh tones in 1950-51, 1520 lakh tones in 1980-81, and 2540 lakh tones in 1991-92. At the highest of eighth five year plan, its production was registered at 2829 lakh tones. Just just in case of oil seeds, production was 186 lakh tones in 1990-91 against 50 lakh tones in 1950-51, and 101 lakh tones only in 1980-81.
From 1995- 96, the assembly of oilseeds was recovered 224 lakh tones. Production of cotton, jute, sugarcane was 87,103 and 2816 lakh tones and production of oilseeds was 151 million tones only in 2002-03.
The agricultural production depends not only on the planet but also on the productivity of land. It shows the connection between inputs and output.
The agricultural productivity are often classified into two categories viz;
(A) Agricultural Productivity per worker.
(B) Agricultural Productivity per hectare.
A. Agricultural Productivity per Worker:
Per Worker-Agricultural Productivity: International Comparisons:
The per worker labour productivity in India is low as compared to some developed countries. According to Dr. Baljeet Singh, In India per worker productivity forms 1/23 of that of U.S.A. And Japan and 1/21 of that in U.K. The low level of per-worker productivity is an indicator of backward agriculture in India.
B. Agricultural Productivity per Hectare:
C. Some International Comparison of Productivity:
No doubt per hectare productivity in India has increased after the introduction of economic planning. But, if we compare it with developed countries it seems to be very low.
Agriculture sector in India is vulnerable to global global climate change . Higher temperatures tend to reduce crop yields and favour weed and pest proliferation. Global global climate change can have negative effects on irrigated crop yields across agro-ecological regions both because of temperature rise and changes in water availability. Rainfed agriculture are getting to be primarily impacted because of rainfall variability and reduction in number of rainy days.Analysis of impact of worldwide global climate change |temperature change"> global climate change |temperature change"> global climate change |temperature change"> global climate change under National Innovations in Climate Resilient Agriculture (NICRA) project has found that climate change is predicted to affect yields, particularly in crops like rice, wheat and maize.
Government of India has initiated various actions to mitigate affects of climate change:
Varieties and cultivars tolerant to a biotic stresses are developed under strategic research component of NICRA.
The technology demonstrations aim at increasing capacity of the farmers and also to affect climate variability within the vulnerable districts to understand climate resilient agriculture. Under NICRA, climate resilient technology demonstrations are implemented in 151 climatically vulnerable districts of the country.
District Agriculture Contingency Plans are prepared by ICAR-CRIDA, Hyderabad for 648 districts within the country to affect the adverse weather .
Throughout history there are many revolutions that have occurred and altered human lives, a bit like the American Revolution and thus the economic revolution . Within the mid- and late-20th century a revolution occurred that dramatically changed the planet of agriculture, and this revolution was mentioned because the revolution .
The revolution was a period when the productivity of worldwide agriculture increased drastically as a results of latest advances. During now period, new chemical fertilizers and artificial herbicides and pesticides were created. The chemical fertilizers made it possible to provide crops with extra nutrients and, therefore, increase yield. The newly developed synthetic herbicides and pesticides controlled weeds, deterred or kill insects, and prevented diseases, which also resulted in higher productivity.
In addition to the chemical advances utilized during now period, high-yield crops were also developed and introduced. High-yield crops are crops that are specifically designed to supply more overall yield. How mentioned as multiple cropping was also implemented during the revolution and cause higher productivity. Multiple cropping is when a field is employed to grow two or more crops throughout the year, so as that the planet constantly has something growing thereon . These new farming techniques and advances in agricultural technology were utilized by farmers everywhere the world , and when combined, intensified the results of the revolution .
Benefits of the revolution
As a results of the revolution and thus the introduction of chemical fertilizers, synthetic herbicides and pesticides, high-yield crops, and thus the tactic of multiple cropping, the agricultural industry was able to produce much larger quantities of food. This increase in productivity made it possible to feed the growing human population.
One one that's legendary for his involvement within the revolution is that the scientist Norman Borlaug. Within the 1940s, Norman Borlaug developed a strain of wheat which may resist diseases, was short, which reduced damage by wind, and may produce large seed heads and high yields. He introduced this sort of wheat in Mexico and within twenty years the assembly of wheat had tripled. This allowed for the assembly of more food for people in Mexico and also made it possible for Mexico to export their wheat and sell it in other countries. Norman Borlaug helped introduce this high-yield quite wheat to other countries in need of increased food production, and he eventually won a Nobel Peace Prize for his work with developing high-yield crops and for helping prevent starvation in many developing countries.
In addition to producing larger quantities of food, the revolution was also beneficial because it made it possible to grow more crops on roughly an equivalent amount of land with a uniform amount of effort. This reduced production costs and also resulted in cheaper prices for food within the market.
The ability to grow more food on an equivalent amount of land was also beneficial to the environment because it meant that less forest or natural land needed to be converted to farmland to provide more food. This is often often demonstrated by the particular incontrovertible fact that from 1961 to 2008, because the human population increased by 100% and thus the assembly of food rose by 150%, the amount of forests and natural land converted to farm only increased by 10%. The natural land that's currently not needed for agricultural land is safe for the nonce , and will be utilized by animals and plants for his or her natural habitat.
The revolution started in 1965 with the primary introduction of High Yielding Variety (HYV) seeds in Indian agriculture. This was including better and efficient irrigation and thus the proper use of fertilizers to spice up the crop. The highest results of the revolution was to form India self-sufficient when it came to food grains.
After 1947 India had to rebuild its economy. Over three-quarters of the population trusted agriculture in how . But agriculture in India was faced with several problems. Firstly, the productivity of grains was very low. And India was still monsoon dependent thanks to lack of irrigation and other infrastructure.
There was also an absence of recent technology. And India had previously faced severe famines during British Raj, who had only promoted cash crops rather than food crops. The thought was to never depend on the opposite country for food sufficiency.
So in 1965, the govt. With the help of Indian geneticists M.S. Swaminathan, mentioned because the daddy of revolution , launched the revolution . The movement lasted from 1967 to 1978 and was a superb success.
Features of the revolution
• The introduction of the HYV seeds for the first time in Indian agriculture. These seeds had more success with the wheat crop and were highly effective in regions that had proper irrigation. Therefore the primary stage of the revolution was focused on states with better infra – like Punjab and Tamil Nadu .
• During the second phase, the HYV seeds need to many other states. And other crops than wheat were also included into the plan
• One basic requirement for the HYV seeds is proper irrigation. Crops from HYV seeds need alternating amounts of water system during its growth. Therefore the farms cannot depend on monsoons. The revolution vastly improved the inland irrigation systems around farm
• the strain of the plan was totally on food grains like wheat and rice. Cash crops and commercial crops like cotton, jute, oilseeds etc weren't a neighborhood of the plan
• Increased availability and use of fertilizers to strengthen the productivity of the farms
• Use of pesticides and weedicides to scale back any loss or damage to the crops
• and eventually the introduction of technology and machinery like tractors, harvesters, drills etc. This helped immensely to plug commercial farming in India.
References
1. Indian Economy - Rudra Dutt & Sundarram
2. Bhartiya Arthashastra – L. M. Roy
3. Indian Economy – Uma & Kapila
