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The Growth and Importance of Agriculture in India Over Decades

In the past, agriculture has played and will continue to play a dominant role in the growth of the Indian economy in the foreseeable future. It represents the largest sector producing around 28 percent of the GDP, is the largest employer providing more than 60% of the jobs and is the prime arbiter of living standards for 70% of India?s population living in the rural areas. These factors together with a strong determination to achieve self-sufficiency in food grains production have ensured a high priority for agriculture sector in the successive development plans of the country.

An important facet of progress in agriculture is its success in eradication of its critical dependence on imported food-grains. In the 1950s, nearly 5% of the total food grains available in the country were imported. This dependence worsened during the 1960s when 2 severe drought years led to a sharp increase in import of food grains. During 1966, India had to import more than 10 million tonnes of food grains as against a domestic production of 72 million tonnes. In the following year again, nearly 12 million tonnes had to be imported. On an average, well over 7% of the total availability of food grains during the 1960s had to be imported.

Indian agriculture has progressed a long way from an era of frequent droughts and vulnerability to food shortages to becoming a significant exporter of agricultural commodities. This has been possible due to persistent efforts at harnessing the potential of land and water resources for agricultural purposes. Indian agriculture, which grew at the rate of about 1% per annum during the 50 years before independence, has grown at the rate of about 3% per annum in the post independence era.