Agricultural Contribution To Economic Development

In other words, where per capital real income is low, emphasis is being laid on agriculture and other primary industries. Increase in agricultural production and the rise in the per-capital income of the rural community, together with the industrialization and urbanization, lead to an increased demand in industrial production.

Various under-developed countries of the world engaged in the process of economic development have by now learnt the limitations of putting over- emphasis on industrialization as a means to attain higher per capital real income.

Thus industrial and agricultural developments are not alternatives but are complementary and are mutually supporting with respect to both inputs and output.

It is seen that increased agricultural

As a matter fact, if the process of economic development is to be initiated and made self-sustaining, it must begin with agricultural sector.

The agriculture sector is the backbone of an economy which provides the basic the basic ingredients to mankind and now raw material for industrialization.

Lessons drawn from the economic history of many advanced countries tell us that agricultural prosperity contributed considerably in fostering economic advancement.

It is correctly observed that the leading industrialized countries of today were once predominantly agricultural while the developing economies still have the dominance of agriculture and it largely contributes to the national income. For example in India, “still 28 per cent national income comes from this

It will impede the growth of country’s economy.

The flour mills, rice shellers, oil and similar mills, bread, meat, milk products sugar factories, wineries, jute mills, textiles, leather mills including pharmaceutical and numerous other industries are based on agricultural products.

The progress in agricultural sector provides surplus for increasing the exports of agricultural products. In the earlier stages of development, an increase in the exports earning is more desirable because of the greater strains on the foreign exchange situation needed for the financing of imports of basic and essential capital goods.

We are of the opinion that a view of the urgent need for enlarged opportunities, substantial expansion of agricultural exports production is frequently a rational policy even though the world supply-demand situation for a commodity is unfavourable. Initially, agriculture absorbs a large quantity of labor force. In Tanzania still about 70 to 80 per cent labor is absorbed in this sector. Agricultural progress permits the shift of manpower from agricultural to non-agricultural