THE CONTRIBUTION OF AGRICULTURE TO THE ECONOMIC GROWTH OF INDIA

Abstract

Agriculture and Industry both are considered as two basic pillars of a developing economy like India. Without development of agriculture, no country can exist and without industrialization no country can develop. Both agriculture and industry play vital role in the balanced economic development of an economy. The share of agriculture and industry is 14.6% and 28.6% respectively to India’s GDP, but their importance in the country’s economic, social, and political structure goes well beyond this indicator. Both the sector hold the key of overall development of the economy by creating employment, generating income, ensuring selfreliance in food production and food security, providing tools and equipment to other sectors and foreign exchange earnings. The present study tries to examine the contribution of both agriculture and industrial sector to Indian economy by considering the variables like Gross Domestic Product (GDP), Per-capita Gross National Income (PcGNI), Gross Domestic Saving (GDS), Gross Domestic Capital Formation (GDCF), and Production of both agriculture and industrial sector. In this paper GDP and PcGNI are used as the proxy of economic growth and economic development respectively. The whole study is based on the secondary data which is collected from the WORLD TRADE ORGANIZATION website which is published by WTO Department of Commerce, Government of India