Agriculture and non agriculture sectors of economy

difference between agriculture and non agricultre sectors.

1. AGRICULTURE AND NON-AGRICULTURE SECTORS OF ECONOMY PRESENTED BY : RADHA SINGH AND PRAGATI AGARWAL

2. CONTENTS Introduction Agriculture sectors Non –Agriculture sectors Relation between agriculture and non-agriculture sectors. Role of each in rural development

3. INTRODUCTION Despite some industrialisation , India remained primarily an agricultural economy at the beginning of the century. The share of the factories in total national income barely exceeded 6% in normal year. The primary sector that is agriculture contributed 60% or more of the total income and two-thirds of total people employed were in the agriculutral sector.

4. AGRICULTURE SECTORS Agricultural sectors   are those sectors which are involved in the principles of  economics to the production of crops and livestock — a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield  while maintaining a good soil ecosystem. Throughout the 20th century the discipline expanded and the current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics .

5. NON – AGRICULTURE SECTORS This sector includes economic activities like household and non-household manufacturing, handicrafts, processing, repairs, construction, mining and quarrying, transport,  trade, communication, community and personal services etc. in rural areas. The Economic Census of India estimates that around 41.89 million rural people are employed in non-agricultural establishments which registered a growth rate of 4.56 % during 1998-2005. However, the sector has been contending with a number of factors like inadequate rural infrastructure, particularly roads, electricity and communication facilities, lack of sufficient skilled labour and adequate access to credit, information and training facilities etc.

6. RELATION BETWEEN AGRICULTURE AND NON – AGRICULTURE SECTORS . A prosperous agricultural sector encouraged manufacturing by supplying less expensive raw materials as well as food for workers and by providing larger markets for industrial products. Local manufacturing development in turn created a larger and more reliable market for agricultural products.

7. Role of Non-Agriculture in Rural Development The economy of rural areas in India is predominantly based on agriculture and other activities related to agriculture sector. Hence an overwhelming majority of rural population is mainly depending on agriculture sector both for its employment and livelihood. At the same time various non-agricultural activities are also playing an important role in providing the opportunities of employment and incomes to the labour force.

8. It is universally accepted that when an excessive pressure of population leads to the subsequent addition to labour force, the agricultural sector alone is neither in a position to create additional productive employment opportunities nor it can provide sufficient income to sustain the livelihood of the rural households. More, expressly, even in agriculturally prosperous and high growth regions the potentials for further development of agriculture seems to be tapering off so that the future impetus for development of rural economy has to come from an expanding base of rural non-farm activities.

9. In fact, it has also been observed by the studies undertaken in the recent past that even bringing improvement in the productivity of crops so as to enhance rapid growth of agriculture is unlikely to employ entire labour force at reasonable level of productivity and incomes. In this sense, initiating for developing a comprehensive planning approach towards the promotion and expansion of potential non-farm activities in rural areas could be effective measure for addressing the emerging problems of unemployment, poverty and out-migration of rural labour force to a certain extent.

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