Agriculture industry linkage and development

Grass Savannah Although humans can do little or nothing to change the incidence or intensity of most natural phenomena, they have an important role to play in ensuring that natural events are not converted into disasters by their own actions. It is important to understand that human intervention can increase the frequency and severity of natural hazards.

Agriculture industry linkage and development

The role of agriculture in economic development has been exhaustively studied from different viewpoints. It has often been approached from the point of view of the intersectoral transfer of resources, mainly agricultural surplus.

Role of Agriculture in Economic Development | India | Economics

Even more commonly, it has been viewed within the dualistic models, based on surplus labour but supplemented by a set of dynamic laws leading to the break-out point and to the disappearance of dualism.

For a long time, economists have debated on the relative importance of agriculture and industry in economic development of a country. Accordingly, different priorities have been assigned to these two key sectors of the economy in developmental planning.

But the real issue is now whether agriculture should be accorded maximum priority in planning or, industrial development. The truth is that agricultural development is possible without industry but the converse is not true, as industrial development is impossible without agriculture.

History amply demonstrates that industrial revolution was preceded by agricultural revolution. InRagnar Nurkse first highlighted the importance of agriculture-industry interdependence in his balanced growth thesis. He argued that the two sectors of the economy should develop simultaneously by assisting one another on a reciprocal basis.

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And any plan for industrialisation in particular and economic development in general must recognise this agriculture-industry interdependence.

Facts of Economic Life: This point becomes very clear from the following facts of economic life: So a setback on the agricultural front adversely affects the growth of such industries.

This is known as the supply linkage of agriculture with industry.

Agriculture has also demand linkage with industry. Agriculture creates demand for basic inputs such as chemical fertilizers, pesticides, etc. With transformation of traditional agriculture, there is specialisation which leads to production for exports.

If, at the same time, industry develops under the impact of agricultural growth, the two sectors become highly interdependent. The industrial sector adds to demand for agricultural goods, and absorbs surplus labour which may raise yield per hectare.

In turn, the agricultural sector provides a market for industrial goods out of rising real income, and makes a further contribution to development, through the release of resources—if productivity rises faster than the demand for commodities. Thus, agricultural development is so much important for reducing urban unemployment and income inequality.

Agriculture industry linkage and development

Moreover, understanding the interactions between agriculture and the other sectors of the economy is crucial for shaping appropriate developmental policies. Although agriculture is the dominant sector of the economy, it is characterised by low productivity and low supply elasticity.

The low productivity per worker implies that the major proportion of the output is absorbed within agriculture itself, i. So, little surplus is left for use in industry and other sectors.Annual Report 7. 1. The IMF update for January, predicts likely pickup in economic activities in and after a lacklustre outturn in , especially in .

Agriculture is the major land use across the globe. Currently ≈– billion hectares are under crops, with another billion hectares being grazed. Relationship between Agriculture and Industry. Article shared by: The development of one sector depends on the growth and performance of the other sector.

Related Articles: Importance of Agriculture in the Indian Economy ; Role of Agriculture in Indian Economy (7 Roles). Agriculture Industry Linkage in the Economy In: Other Topics Submitted By ssamir emphasis has been laid to achieve sustainable economic growth with inclusive development (Singh, ).

AGRICULTURE, AND INDUSTRY AMH September 9, Introduction: After the civil war, people’s interactions with their government, economy, and.

Agriculture industry linkage and development

A number of development economists attempted to point out that while agriculture’s share fell relative to industry and services, it nevertheless grew in absolute terms, evolving increasingly complex linkages to the non-agricultural sectors.

Agriculture and Industry spurt of service sector led growth are also likely to have significant impact on the linkages between agriculture and industry.

Chapter 3 - The context of extension in agricultural and rural development