difference between agriculture and non agricultre sectors.

1. AGRICULTURE AND NON-
AGRICULTURE SECTORS OF ECONOMY
PRESENTED BY :
RADHA SINGH AND
PRAGATI AGARWAL

2. CONTENTS
• Introduction
• Agriculture sectors
• Non –Agriculture sectors
• Relation between agriculture and non-
agriculture sectors.
• Role of each in rural development

3. INTRODUCTION
• Despite some industrialisation , India
remained primarily an agricultural economy at
the beginning of the century. The share of the
factories in total national income barely
exceeded 6% in normal year. The primary
sector that is agriculture contributed 60% or
more of the total income and two-thirds of
total people employed were in the agriculutral
sector.

4. AGRICULTURE SECTORS
• Agricultural sectors are those sectors which are
involved in the principles of economics to the
production of crops and livestock — a discipline known
as agronomics. Agronomics was a branch of economics
that specifically dealt with land usage. It focused on
maximizing the crop yield while maintaining a good soil
ecosystem. Throughout the 20th century the discipline
expanded and the current scope of the discipline is
much broader. Agricultural economics today includes a
variety of applied areas, having considerable overlap
with conventional economics.

6. NON – AGRICULTURE SECTORS
• This sector includes economic activities like household
and non-household manufacturing, handicrafts,
processing, repairs, construction, mining and quarrying,
transport, trade, communication, community and
personal services etc. in rural areas. The Economic
Census of India estimates that around 41.89 million rural
people are employed in non-agricultural establishments
which registered a growth rate of 4.56 % during 1998-
2005. However, the sector has been contending with a
number of factors like inadequate rural infrastructure,
particularly roads, electricity and communication
facilities, lack of sufficient skilled labour and adequate
access to credit, information and training facilities etc.

8. RELATION BETWEEN AGRICULTURE
AND NON – AGRICULTURE SECTORS.
• A prosperous agricultural sector encouraged
manufacturing by supplying less expensive
raw materials as well as food for workers and
by providing larger markets for industrial
products. Local manufacturing development in
turn created a larger and more reliable market
for agricultural products.

9. Role of Non-Agriculture in Rural
Development
• The economy of rural areas in India is
predominantly based on agriculture and other
activities related to agriculture sector. Hence
an overwhelming majority of rural population
is mainly depending on agriculture sector both
for its employment and livelihood. At the
same time various non-agricultural activities
are also playing an important role in providing
the opportunities of employment and
incomes to the labour force.

10. • It is universally accepted that when an excessive
pressure of population leads to the subsequent
addition to labour force, the agricultural sector
alone is neither in a position to create additional
productive employment opportunities nor it can
provide sufficient income to sustain the livelihood
of the rural households. More, expressly, even in
agriculturally prosperous and high growth regions
the potentials for further development of
agriculture seems to be tapering off so that the
future impetus for development of rural economy
has to come from an expanding base of rural non-
farm activities.

11. • In fact, it has also been observed by the studies
undertaken in the recent past that even bringing
improvement in the productivity of crops so as to
enhance rapid growth of agriculture is unlikely to
employ entire labour force at reasonable level of
productivity and incomes. In this sense, initiating
for developing a comprehensive planning approach
towards the promotion and expansion of potential
non-farm activities in rural areas could be effective
measure for addressing the emerging problems of
unemployment, poverty and out-migration of rural
labour force to a certain extent.