Agriculture Or Industry : Complementary or Competitive

Agriculture Or Industry Complementary or Competitive

India has always been an agriculture based country. Our economy is directly affected by any kind of agricultural change. At the time of independence, it was India’s main occupation. With the advent of Industrial revolution in 1990s, the structure of the economy has changed. It has greatly affected agriculture in India. Has this affect been possitive or negative? Was this the turning point for Indian economy or just another short lived bubble? Was the influence of such changes confined to our economy or did it spread internationally?

Industrialization has introduced modern tools and techniques, which now are a part and parcel of the agricultural sector. Machines like tractors, reapers, harvesters and techniques like crop rotation, new irrigation methods have improved the quantity and volume of the agricultural produce. According to the data provided by RBI, the average yield of rice, wheat and pulses have gone up from 1123, 1307 and 524 (kilogram per hectare) in 1970-71 to 2240, 2938 and 689 (kilogram per hectare) in 2010-11. Industries have also contributed in the development of proper markets for both agricultural and manufactured goods. Manufacturing and tertiary sectors have come into existence due to the support of agricultural inputs. The data also shows that the manufacturing sector contributed 13% of GDP (2013) and that the agricultural sector, 18.2%, meaning thereby nonexistence of any one sector would decline the GDP by significant numbers. Development of these sectors has led the economists to focus on those areas that would provide comparative advantage to the Indian economy, thus facilitating trade among nations. The share in world total exports was 3.25% while that in world total imports was 2.84% in 2013, thus making India self sufficient in most of the aspects (data taken from WTO website). Emergence of industrial sector has resolved the problem of disguised unemployment prevailing in the agricultural sector. India still engages 49% of the population in agriculture and only 20% of the population in industry according to CIA (2012). Thus, agriculture and industry are the helping hand for each other.

Agreed upon is the fact that the two sectors are complementary to each other but the competitive spirit among them cannot be hidden. With the emergence and development of other sectors in India, the people engaged in agriculture, mainly farmers have been neglected to a large extent. The greed to move fast has led politicians and economists to ignore the suicidal attempts made by the farmers. According to the National Crime Records Bureau, in 2012, 13754 suicides were reported. Also, the structure of the labour force has witnessed continuous alterations, leaving few communities of the society unemployed and underdeveloped. After the industrial revolution, farmers were forced to produce only certain crops which led to intensive farming and infertility of land, thus affecting the agricultural health.

Agriculture and Industry go hand in hand when it comes to economic development, only until the welfare of all the sections of the society are taken care of. Both the sectors, their complementary and competitive nature, are vital for a developing country like India. What must be kept in mind is that both the sectors should be geared by balanced growth by the economists so that neither of the sectors is left behind.

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