Role of Agriculture in Indian Economy

Agriculture plays a vital role in the Indian economy.  Over 70 per cent of the rural households depend on agriculture. Agriculture is an important sector of Indian economy as it contributes about 17% to the total GDP and provides employment to around 58% of the population. Indian agriculture has registered impressive growth over last few decades.  The foodgrains production has increased from 51 million tonnes (MT) in 1950-51 to 250MT during 2011-12 highest ever since independence

The share of agriculture in GDP increased to 19.9 per cent in 2020-21 from 17.8 per cent in 2019-20. The last time the contribution of the agriculture sector in GDP was at 20 per cent was in 2003-04.

Basic Facts about agriculture
  • India is the biggest exporter of cotton in the world.
  • India is the largest producer of ginger, okra, potatoes, onions, brinjal, etc., amongst vegetables.
  • Sikkim is the first state in the world that claimed 100% organic farming.
  • India ranks 2nd in the world in agriculture production.
  • India’s world rank in services and industry sector is 9th and 5th respectively.
  • Indian agricultural production has increased from 87 USD bn to 459 USD bn in the past 15 years (12% annual growth).

Globally India ranks 9th for the agricultural exports.