Unit- 2: The place of Agriculture in Indian Economy, Significant changes and New Areas Trust in Agriculture, Food Security, Industrial Pattern and Five Year Plans, Large Scale and Small Scale Industries , MSME, Labour Problems and Related Issues

Unit- 2: The place of Agriculture in Indian Economy, Significant changes and New Areas Trust
in Agriculture, Food Security, Industrial Pattern and Five Year Plans, Large Scale and Small
Scale Industries , MSME, Labour Problems and Related Issues

1. UNIT 2: The Place of Agriculture in Indian Economy

2. Introduction Agriculture is the backbone of the Indian economy. Provides livelihood to ~45% of the workforce (as of 2023). Contributes to food security, raw materials, and exports. Closely linked with industry, trade, and services.

3. Place of Agriculture in Indian Economy Share in GDP declined from ~50% at independence to ~18% today. Still vital due to employment and rural livelihood. Acts as a source of raw material for industries (cotton, sugar, jute, etc.). Influences growth of other sectors ( agro -based industries, FMCG).

4. Significant Changes in Agriculture Green Revolution: High-yield seeds, irrigation, fertilizers. White Revolution: Boost in milk production. Blue Revolution: Fisheries development. Mechanization and digitalization (AI, drones, precision farming). Shift from subsistence to commercial agriculture.

5. New Areas of Trust in Agriculture Organic Farming, Horticulture & Floriculture. Food Processing & Agri-business. Contract Farming & FPOs. Agri-Tech & Digital Platforms (e-NAM, Agri-Startups). Climate-smart & Sustainable agriculture.

6. Food Security in India Ensuring availability, accessibility, and affordability of food. PDS & National Food Security Act, 2013. Buffer stock management through FCI. Challenges: Malnutrition, food wastage, climate change. Government schemes: PM-KISAN, Mid-Day Meal, PM Garib Kalyan Anna Yojana.

7. Industrial Pattern in India Co-existence of modern large-scale and traditional small-scale industries. Large Scale: Iron & steel, automobiles, petrochemicals, IT. Small Scale: Handicrafts, textiles, cottage industries. Shift from heavy industries → liberalized global industries (post-1991).

8. Five Year Plans and Industry 1st Plan (1951-56): Agriculture & irrigation. 2nd Plan (1956-61): Industrialization, Mahalanobis Model. 4th Plan: Growth with stability, self-reliance. 6th Plan: Emphasis on poverty alleviation. Post-1991: Liberalization, privatization, globalization. NITI Aayog replaced Planning Commission in 2015.

9. MSME Sector in India Backbone of economy, contributes ~30% of GDP and ~45% of exports. Largest employment after agriculture. Policies: MSME Act 2006, Atmanirbhar Bharat Package, Udyam Registration. Challenges: Credit access, technology gap, global competition.

10. Labour Problems in India High informal employment (~80% in unorganized sector). Low wages, job insecurity. Child labour, seasonal unemployment. Issues of gender inequality. Impact of globalization & automation. Labour Codes (Wages, Industrial Relations, OSH, Social Security).

11. Related Issues Agrarian distress & farmer suicides. Climate change impact on crops. Industrial pollution & displacement. Skill mismatch in labour market. Need for inclusive growth & sustainable development.

12. Conclusion Agriculture remains vital despite declining GDP share. Food security & industrialization are interdependent. MSMEs & labour reforms are key for economic resilience. Balanced growth of agriculture + industry = sustainable economy.