Agriculture plays a crucial role in the economy of developing countries, and provides the main source of food, income and employment to their rural populations. However, improvements in agriculture and land use are fundamental to achieving food security, poverty alleviation and overall sustainable development.
Some of the major role of agriculture in economic development of a country are as follows:
Agricultural sector plays a strategic role in the process of economic development of a country.
It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. agriculture makes its contribution to economic development in several ways:
(1) By providing food and raw material to non-agricultural sectors of the economy,
(2) By creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the marketable surplus,
(3) By providing investable surplus in the form of savings and taxes to be invested in non-agricultural sector,
(4) By earning valuable foreign exchange through the export of agricultural products,
(5) Providing employment to a vast army of uneducated, backward and unskilled labour. As a matter of fact, if the process of economic development is to be initiated and made self-sustaining, it must begin for agricultural sector.
Agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level. It will impede the growth of the country’s economy. The flour mills, rice shellers, oil & dal mills, bread, meat, milk products sugar factories, wineries, jute mills, textile mills and numerous other industries are based on agricultural products.