Availability of Agricultural Credit and Agricultural Development

Topics: Agriculture, Bank Pages: 9 (2694 words) Published: April 4, 2011
Agriculture is the organized way of cultivating both food cops and cash crops. It is through the development of agriculture the human beings started organized way of living. The development of agriculture led to the development of civilized life of man. The agricultural sector is important in all the aspect of human life because it provides food materials and raw materials to industries. So the development of agriculture stands as the back bone to the development of a country and the development of standard of living of the people in the country. Thus all the countries should give prior importance to the development of agriculture. Role of agriculture in development

Agriculture has an important role to play in the economic development of an agrarian economy like that of India. •Supply of labor
Agriculture also contributes to the development through the supply of labor. An agriculture economy by definition provides work to almost the entire labor force of the economy. •Enlarged exports
Agriculture can also contribute to the foreign currency earning of the economy. •Contributions to capital formation
Agriculture can also contribute to a growing country’s needs for large capital recourses. This is all the more important because with the existing modern capital sector being small, there is little that can come from this sector by way of surpluses or profits for investments. •Increased output to stimulate industrial expansion

Large incomes of the rural people resulting from agricultural expansion can stimulate industrial growth. Indian agriculture; importance
India is considered as an agrarian economy. More than 70% of the people are engaged in agricultural activities for their living. Agriculture plays a crucial role in the development of the Indian economy. It accounts for about 19 per cent of GDP and about two thirds of the population is dependent on the sector. The development of the Indian economy depends upon the development of agricultural sector of the economy. Thus due importance should be given to the development of agriculture to achieve greater development of the economy. The Indian agriculture sector not only provides employment to the people but also provides food and raw materials to the industry. Place agriculture in Indian economy

Large segment of national income
Agricultural sector makes a large contribution to the country’s Gross Domestic Product. It contributes about 30% to the GDP. •Provides large employment and support for many activities Being the producer of the largest amount of goods and services in the country, it provides employment and work for living to majority of Indian masses. In villages more than 70% of the people earn from cultivation and allied agro-industries. A considerable part of the labor force in towns and cities also find jobs in marketing, export and other activities connected with agriculture. •Supplies food

In a poor country where a very large proportion of income is spent on food, it is of crucial importance that agriculture meets almost the entire food needs of the people. •Exports
Agriculture contributes a sizable pat of exports of the country. The export of agriculture and allied products constitute as much as 20% of the total exports. •Influences on industrial structure

Agriculture, through the provision of raw materials, determines a large part of the country’s industrial set-up. Many industries process agricultural products, and many other manufacture agricultural products into finished goods. Features of Indian agriculture

Over dependence on uncertain rains

The dependence of agriculture on nature is generally much larger than in case of other occupations. In the absence of adequate irrigation facilities, as much as 70% of the cultivation in India looks to rains for water supply. •Multiplicity of crops

The large variety in climate and soil conditions makes it possible for the country to produce many...
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