Agriculture is the most important sectors of the Indian economy. It is the food and raw material provider in the country. At the time of independence, more than 70 per cent of India's population depended on agriculture for their livelihood. As a result, the share of agriculture in the national product/income in 1950-51 was 56.5.6%. However, with the development of industries and service sector during the plan period, the percentage of the population which is dependent on agriculture, as well as the share of agriculture in the national product has decreased. In 1960, the percentage of labor force engaged in agricultural activities was 74, which gradually declined over the years to 1 percent in 2016. In 1960, the proportion of labor force and services in the industrial sector was 11 and 15 per cent, respectively. But in 2012, the shares rose to 22.4 and 26.5 percent, respectively. In most economies it has been observed that along with economic growth there is also a change in the personnel from agriculture to the industrial and services sector.
Agriculture is the source of food supply. Food grain production increased from about 55 million tonnes in 1950-51 to 259 million tonnes in 2012-13. Due to the increase in grain production, India's dependence on grain imports has reduced to almost zero. Given the rapid growth of India’s population, an increase in foodgrains was a requirement that the country achieved significantly. With the exception of greens, the increase in cereals and various commercial crops has made the growth of cereals possible. Agriculture is also an important source of foreign exchange income through exports. In 2011-12, the share of agriculture in India's exports was 13.3%. Major export products include tea, sugar, tobacco, spices, cotton, rice, fruits and vegetables.
Industry Growth in India
The secondary sector of industry or economy is another important sector of economic activity. After independence, the Government of India emphasized the role of industrialization in the long-term economic development of the country. As a result, the original project for industrial development was undertaken in 1956 by the Industrial Policy Resolution (DPI). The 1956 policy emphasized the establishment of heavy industries along with the public sector at the forefront of the sector. It was justified to adopt a strategy of heavy or basic industries as it would reduce the burden on agriculture, increase the production of consumer goods industries, as well as small industries that are useful for generating and achieving employment. Self-reliance.
After the adoption of IPR, 1956 saw tremendous growth in industrialization during the second and third periods of the scheme i.e. 1956-61 and 1961-66. The public sector has contributed the most to this growth. But in the late 1960s, declining investment in the industry negatively affected its growth rate. In the 1980s, this trend was reversed and investment in industries strengthening infrastructure such as energy, coal and rail increased. In the early 1990s, it was discovered that public sector companies were not meeting expectations. There have been reports of mismanagement in these companies which has resulted in losses. Therefore, in 1991, the Government of India decided to promote the role of the private sector in industrial development, to abolish the strict licensing system known as liberalization and to allow international players to compete in the national as well as national players. To explore foreign territories. The purpose of taking all these steps was to strengthen the industrialization process in the country.
Such a model of industrial development is called the model of liberalization, privatization and globalization. Since the adoption of this new policy in 1991, growth has been followed by a slowdown in the process of industrial development. In the early years of the 1990s, industrialization led to significant growth due to increased investment in infrastructure, reduction in excise duty, availability of funds, etc. But towards the late 1990s, the growth rate slowed down due to strong competition from international companies, inadequate support for infrastructure, etc. However, at the beginning of the new millennium, the rescue rate improved again, from 23.5 per cent in 2001-2008 to 37.4 per cent in 2007-08 between 2002-08. Competition by foreign companies also helped during this phase as local companies can build enough internal strength in terms of quality control, finance and customer service etc. Resistance to competition.
However, the rise in oil prices, interest rates and foreign borrowings after 2000-09 led to a slowdown in industrial development, which has created many responsibilities for national companies.
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