Contribution of Agricultural Sector in the Economic Growth of the Country

Agricultural Sector

Agricultural Sector deals with farming, producing crops, soil cultivation, raising livestock, husbandry, it plays the vital role in the economic growth of the country. In India almost 70% of it’s population are in rural areas and dependent on the agricultural sector for their livelihood. Agricultural sector is the primary source of livelihood for approx 70% of country’s population. It generates employment for half of the country’s population and contributes 17%-18% of the GDP and main source of Income for it’s population.

This sector has the important contribution in Indian economy. It has occupied 43% of India’s Geographical area the green revolution introduced to improve the agricultural sector in India.

Measures Taken by The Green Revolution: –

  • Acquiring more area for cultivation purposes
  • Use of high quality seeds
  • Expanding irrigation facilities
  • Use of better techniques 
  • Water management
  • Use of quality fertilizers, pesticides, cropping applications

EPCG License allows the import of capital goods without paying the custom duties under foreign trade policy.

Government Schemes To Promote Agricultural Sector In India: –

The Government of India announced and allocated fund of Rs 15,000 Crore for Infrastructure development in agricultural sector.

National Animal Disease Control Programme: –

The Prime Minister of India introduced the NADCP and allocated Rs 13343 Cr to eradicate foot and mouth disease.


NABARD stands for National Bank for Agriculture and rural Development. It is the Government authority to provide the financial assistance to the farmers and the people who are into agricultural sector. It was established on 12th July 1982 on the recommendations of B. Sivaramman. Under this scheme government announced to allocate Rs 700 Crores for rural focused start-ups,

Transport And Marketing Assistance (TMA) Scheme: – 

It was launched under foreign trade policy to make Indian Agricultural Products cost competitive in global Market for the specific products. It provide the refund of transportation cost on the exports. Government launched various export promotion scheme such as Advance Authorisation Scheme which allow duty free import of inputs required to obtain export goods.

The Agriculture Export Policy: –

This policy introduced by the Government to double the farm exports to $60 billion by 2022 from $30 billion last year. The Agricultural export policy aims to promote organic, ethnic, indigenous products and allocated 1400 Crore under the scheme. Advance licence scheme allows the import of raw materials to manufacture the export goods.

Pradhan Mantri Krishi Sinchai Yojana: –

It was launched to improve the farm productivity and ensure better utilization of the resources. Under this scheme all the farmers will get access to protective irrigation.