Whether a person works at a FMCG store, bakery, at a restaurant or at a clothing store, the jobs are all dependent on agriculture and our farmers.
National Crime Reports Bureau states that 2,96,438 farmers committed suicide since 1995 in India. Most of the reported cases were due to the farmers’ inability of repaying the loans taken to manage the farms. Agriculture is the primary sector i.e. the most essential or basic part of the economy and yet the burden of the most of destitute belongs to this one sector. 80% of India's poor live in the approx. 6,70,000 villages, which holds 70% of India's population. 55% of the population is associated with agricultural activities.
The data and figures suggest that agriculture is a struggling sector, and that it needs help yet another set of data speaks otherwise. Economists like Raj Krishna, S. Chakravarty and C. Rangarajan has emphasised that agriculture is deeply related to industrial growth and the national income in India. 1% increase in agricultural growth leads to 0.5 % increase in industrial output (growth) and 0.7 % increase in the national income of India.
Whether a person works at a FMCG store, bakery, at a restaurant or at a clothing store, the jobs are all dependent on agriculture and our farmers. Maintenance industry which further includes, fertilisers, chemicals, machinery, research and development, and a range of services like financing, engineering and transportation etc. are also dependent on agriculture. Electricity, water and construction are also serving the agriculture sector in huge proportions. It is also the main support for India’s transport system, since railways and roadways secure bulk of business from the movement of goods.
Gross Domestic Product or GDP, which is the market value of all finished goods and services produced in the country might have a small proportion of 15% from agriculture, but a lot of the produced goods are dependent on this primary sector. Since it serves as the raw material to other industries, the dependency of other sectors on the farming is high.
India is a huge economy which is capable to consume its own produced goods. In the recent slump of economic growth, a key contribution was from consumption drop. i.e. consumers stopped buying products.Rural India is one of the biggest market in the world. To expand the market by tapping the countryside, more and more MNCs are foraying into India’s rural market. The products which have attained the maturity stage in urban market is still in growth stage in rural market. If the purchasing power of these 55% of the population based on agriculture increases, the effect on the sales and hence the economy would be significant.
Agriculture is not only the biggest sector of the economy but also the biggest private sector. 55% of India is associated with agriculture contributing approx. 15% of GDP. However, it also means that 55% of the population lives with only 18% of the total income of the Indian economy which makes the people dependent on agriculture poor. The surprising fact is that it is after having no burden of taxation.In the developed economies like USA, UK, France, Norway, Japan. the agriculture contributes only 2% of the GDP and only 2% of its people are dependent on this sector for livelihood. But they still produce enough for themselves. Indian needs to give these people the freedom to make financial, social and economic decisions to make the country better.
How Farmers Can Save the Economy ? Agriculture makes the building block of an economy