ECONOMIC ASPECT OF AGRICULTURE SECTOR ON GDP

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agriculture
 The science and art of cultivation on a piece of land [i.e. soil] is known as agriculture. Agriculture is one of the prime sources of income even if not for an income then surely for a living. Agriculture is not something that happens overnights it is a process of hundreds of years, when humans grasp that they can grow its food as well, instead of killing only.

Now, as time progresses in most of the major economies of the world, farming remains the chief source of GDP contribution. Currently, Liberia’s 76.9% GDP is formed from the agriculture sector while in Somalia the rate is 60.2%. Before you think any further, try visualizing agriculture contribution in the GDP of countries like the USA and Germany. For assistance cogitate it is to be around 1.05% and 0.9% correspondingly. Consequently, from this tiny synopsis, we can pretty much take an idea of the prevailing economies of all the countries around the world.

Moving on, captivating in a frame, Indian agriculture accounts for 18% of India’s GDP and delivers employment to 50% of the country's workforce. While in countries like the USA, as of 2008 less than 2% of the country's population is directly employed in agriculture. So, from an overall analysis, it can be determined that the shift from agriculture is significant for the enlargement of the economy, as well as for a swing of a workforce to industry and service sector, it is also required to reduce the underemployment as well.

The subsequent are some of the measures that can be engaged to make the agriculture sector more prolific while reducing its total stake of contribution.
  1. "Pro-Debtors law"; a country like the USA during its independence in 1776 faced the identical problem, where the farmers of a country were in great debt despite agriculture being the only source of major income. Under the Pro-Debtor law, more notes were printed to forgive the debts that people had. In India as well the farmers were in huge debt. Govt. can introduce a scheme under which their debts can be exonerated, if not forgiven; their interest can be reduced to some extent.
  2.  Upgradation of quality standard, better infrastructure, further FDI in the agriculture sector, public-private partnership introduction in the agriculture sector.
  3. Improving access to credit, technology, and market.
  4. Measure to protect the food from post-harvest loss.
  5. Agricultural training to farmers to raise productivity.
  6. A shift in mindsets of individuals towards the industry and service sector.

Hence, these are a few measures that can be taken as an initiative towards making agriculture more productive and less human consumed sector.

This transformation in the agriculture sector is very crucial for better utilization of existing resources as well as for the progression of the Indian economy. Since, Indian economy is still dependent upon agriculture, which represents its backwardness.


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2 comments:

  1. According to Agriculture economics, this dependence on Agriculture sector can also be viewed as a need of increasing poplulation. That is, countries like Liberia or Somania to the 15th most dependent economy on agriculture, Nepal (which accounts for approximately 35% GDP) might be considered inefficient due to a low population number. However, a cointry like India with 1.4 Billion of population, second largest population number of world, this might not actually prove a good idea, if more people shift to industrial sector considering existing competition and reservation sysytem. :)

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    1. Whole shift isn't required, only underemployment in agriculture need to be tackled. I guess that can be done by employing better agriculture practice as well as giving training. Leads to introduce quality job in agriculture and quality output. As well for countries like Liberia and Somania they are probably on second phase of demographic transition where there dependence on agriculture is quite natural, while Nepal entered in the mid-transitional stage already.
      As india is on 3 stage of the demographic model this partial shift is required.

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