essay writing on agriculture is the backbone of indian economy

Essay on Agriculture – The Backbone of the India

Students are often asked to write an essay on Agriculture – The Backbone of the India in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Agriculture – The Backbone of the India

Introduction.

Agriculture is the primary source of livelihood for about 58% of India’s population. It provides raw materials to industries and is the backbone of the Indian economy.

Importance of Agriculture

Agriculture is important as it feeds the nation. It also creates vast employment opportunities. Industries like textiles and sugar depend on agriculture for raw materials.

Challenges in Agriculture

Despite its importance, agriculture faces challenges like lack of modern technology, dependence on monsoon, and low productivity. These need to be addressed for sustainable growth.

Agriculture is vital for India’s economic and social well-being. It’s the backbone of the nation and deserves attention and support.

250 Words Essay on Agriculture – The Backbone of the India

The significance of agriculture in india.

Agriculture, often referred to as the backbone of the Indian economy, plays a pivotal role in driving the country’s socioeconomic fabric. It contributes to around 17-18% of the country’s GDP and employs more than half of the total workforce, underpinning its significance in India’s economic structure.

Interdependence of Agriculture and Indian Society

The interdependence of agriculture and Indian society is profound, as it not only provides livelihoods but also ensures food security. The diversity of crops, ranging from cereals to fruits and vegetables, caters to the dietary needs of the vast population. Moreover, agriculture has a direct bearing on rural development, as it influences the rural economy and shapes the social dynamics in these areas.

Agriculture and Environmental Sustainability

In the context of environmental sustainability, agriculture plays a critical role. Traditional agricultural practices in India have always advocated for harmony with nature. However, the challenge lies in balancing the need for increased production with sustainable practices. Innovative strategies such as organic farming and precision agriculture are being adopted to address this.

The Way Forward

The future of Indian agriculture hinges on technological advancements, policy reforms, and a shift towards sustainable farming practices. Emphasizing research and development, improving access to credit, and strengthening the agricultural value chain are crucial steps in this direction.

In conclusion, agriculture remains the lifeblood of India’s economy and society. Its importance transcends beyond mere economic contributions, linking to social cohesion, food security, and environmental sustainability. As such, the need to prioritize and modernize this sector is more imperative than ever.

500 Words Essay on Agriculture – The Backbone of the India

Agriculture, often referred to as the backbone of India, is a significant part of the country’s economy, contributing to approximately 17% of the total GDP. It is the primary source of livelihood for about 58% of India’s population, emphasizing its crucial role in the socio-economic fabric of the country.

Historical Significance

India’s history is deeply intertwined with agriculture. The Indus Valley Civilization, one of the world’s oldest, was primarily agrarian. Over centuries, the agricultural practices evolved, and the advent of the Green Revolution in the 1960s marked a major turning point. It led to a substantial increase in crop yield, transforming India from a food-deficit country into a food-surplus nation.

The Modern Agricultural Landscape

Today, India is the world’s largest producer of pulses, rice, wheat, and spices. It’s the second-largest fruit producer and the third-largest in vegetables. Yet, the sector faces numerous challenges such as inadequate irrigation facilities, small and fragmented land-holdings, and lack of modern technology.

Technological Interventions in Agriculture

In the age of digital revolution, technology has started making its way into the agricultural sector. Precision farming, using AI and IoT, is enhancing productivity and reducing wastage. Drones are being used for crop monitoring, and mobile apps are providing real-time weather forecasts and market prices to farmers.

Agriculture and Climate Change

Climate change poses a significant threat to agriculture. Rising temperatures and erratic rainfall patterns can lead to a decrease in crop yield. However, sustainable farming practices like organic farming and rainwater harvesting can mitigate these adverse effects.

The Role of Government

The government plays a pivotal role in supporting agriculture. Policies like Minimum Support Price (MSP), crop insurance schemes, and subsidies on fertilizers aim to safeguard farmers’ interests. The recent farm bills have sparked debates about their potential impact on farmers’ income and the agricultural sector at large.

Agriculture and India’s Future

Agriculture’s role extends beyond mere food production. It is a key player in achieving the United Nations’ Sustainable Development Goals (SDGs). With the right mix of policies, technological interventions, and sustainable practices, agriculture can be the driving force in India’s journey towards sustainable development.

Agriculture, indeed, is the backbone of India. It is not just an economic activity but a way of life for a majority of Indians. It is the thread that binds the ‘Bharat’ to ‘India’. As we move towards a more technologically advanced future, it is essential to ensure that this sector is not left behind. With the right interventions, Indian agriculture has the potential to feed not just the nation but also the world.

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The Indian Agriculture Sector

Agriculture is the backbone of Indian economy. It accounts for nearly 20 percent of the aggregate output. To be specific, nearly half of the population depends on agriculture for their livelihood (Government of India, 2010, p. 6). Contribution of the agricultural sector to the economy is declining, however other sectors thrive.

For example, approximately 45 percent of the total output was obtained from the agricultural sector in the early 70s,. The figure has dropped to less than 20 percent in the last decade. Nonetheless, agriculture still remains a significant source of employment for many Indians. It provides jobs to over half of the country’s population (Government of India, 2010, p. 12).

The dwindling agricultural production has led to a decrease in agricultural exports and an increase in agricultural imports. The ratio of agricultural exports to the total exports dropped to 10 percent in 2010 compared to 20 percent in the early ’90s. On the other hand, the ratio of agricultural imports to the aggregate imports grew by approximately 6.6 percent in the last three decades (Government of India, 2010, p. 13).

The decrease in agricultural production and the increase in agricultural imports have been a cause of major concern. Hot debates didn’t provide any solution to the problem, as well as small reforms. situation deteriorated which led to introduction of the next five-year plan.

As a result, the government came up with a five-year plan, which solely targets the agricultural sector. The five-year plan is aimed at reversing the disturbing trend in the sector.

The five-year plan puts emphasis on the country’s self-sufficiency and self-reliance in the food production (Vaidyanathan, 2010, p. 9; Government of India, 2013, p. 5). This paper explores the impact of the 11 th five-year plan on India’s agricultural sector, particularly in promoting local food production and economy stability.

11TH Five Year Plans (2007-2011)

As the country’s population keeps growing, the nation needed to enhance its food production to take care of the ever-increasing demand. Given the significance of the agricultural sector to the economy, the government introduced the 11 th five-year plan to provide support and incentives to farmers and other stakeholders in order to enhance production of food (Government of India, 2013, p. 5).

There are four principal elements of this policy. The first element is enhancement of viability of agricultural operations by increasing market access, availing insurance cover, and monitoring agricultural commodity prices (IBEF, 2013, p. 7).

The second element is provision of suitable technologies through research and training. The third element is increase of budgetary allocation for agriculture and its infrastructure so as to improve efficient use of natural resources and of agricultural commodity markets functioning.

Last but not least is provision of better delivery of services, for instance, loans to farmers, veterinary services and general farm inputs. In a nutshell, the 11 th five-year plan was aimed at increasing food production by providing special programs and building agricultural infrastructure (IBEF, 2013, p. 7).

The Impact of the 11 th Five-Year Plan on the economy and local food production

Figure 1 below shows India’s GDP growth rate over the last ten years. It is clear that between 1997 and 2007 the real agricultural output was decreasing, whereas the non-agricultural output was increasing. The ratio of agricultural GDP to the total GDP was very low during that period. This forced the government to reconsider its policy on food production, hence to introduce the 11 th five-year plan (Central Statistics Office, 2011, p. 44).

The 11 th five-year program introduced the National Food Security Mission (NFSM), which significantly increased production of cereals in the country. The principal goal of the National Food Security Mission was to establish scientific elements which incorporate mechanization, soil supplements and crop security measures (Government of India, 2013, p. 6).

The 11 th five-year plan helped to attain 3.2 percent agricultural GDP growth. Even though the figure was below the projected value of 4 percent, it was significantly better than the figures under the previous policies (Central Statistics Office, 2011, p. 45).

Figure 1: Agriculture and Non-Agriculture GDP Growth Rate in India in the Last Decade

Source: (Central Statistics Office, 2011)

Before the introduction of the 11 th five-year plan, the share of acreage of agricultural lands decreased by approximately 20 million hectares. Similarly, the area under food grains shrank by 10 percent. The lowest production was recorded in 2008.

However, the introduction of new technologies under the 11 th five-year plan led to 80 percent increase in acreage of agricultural lands. The production of rice, wheat and maize increased significantly, followed by pulses on the second place. Under the 11 th five-year plan, food grain output increased by 2.3 percent (Central Statistics Office, 2011, p. 45).

Generally, Indian agribusiness is characterized by diminutive and divided area holdings. There are around 130 million active holdings in the country. On average, each active holding possesses approximately 1.2 hectares. Less than 1 percent own more than 10 hectares (Sharma, 2011, p. 6). Before the introduction of the 11 th five-year plan, the overall productivity among the smallholder producers was exceedingly low.

Their participation in the market was poor because of such reasons as high transaction costs, low yields, inadequate information and small market consumption. In addition, increased land fragmentation led to big losses on farmlands. As a result, many farmers opted to lease their lands or seek gainful employment outside the agricultural sector (IBEF, 2013, p. 5).

The introduction of the 11 th five-year plan brought some positive results. The 11 th five-year plan supported the formation of cooperatives and self-help groups. The cooperatives and self-help groups not only helped farmers to access credit facilities, but also to market their products. The government increased access to loan facilities by providing interest-free loans and subsidized inputs.

For this reason, many Indians went back to farming (IBEF, 2013, p. 6). By the end of 2012, cultivation areas had increased by 8 million hectares. The government also introduced other support programs through the 11 th five-year plan, such as water for canal irrigation, power for groundwater pumping, retention price subsidy scheme for fertilizers, and access to the international market (IBEF, 2013, p. 7).

According to the IBEF (2013, p. 7), the main objective of the 11 th five-year plan was to increase the production of food grains by 20 million tons. The government allocated roughly 900 million U.S. dollars for the project.

There are four main achievements of the 11th five-year plan for the first year according to the National Food Security Mission (NFSM). The first achievement was a 70 million tons to over 90 million tons increase of wheat production.

The second achievement was a 90 million tons to over 110 million tons increase of rice production. The third achievement was an 80 million tons to over 100 million tons increase of maize production. And the last was a 13 million tons to over 15 million tons increase of pulse production (IBEF, 2013, p. 7).

Figure 2 below highlights the growth rate of land, labor and capital output based on the agricultural GDP index. Even though the productivity growth rate in the agricultural sector has always been low, averaging 2 percent per year, during the 11 th five-year plan it reached 5 percent. This was the highest figure recorded in the country’s history.

The closest was 3 percent, which was recorded in 1981. As a matter of fact, the Commission of Agricultural Costs and Prices (CACP) estimated the growth rate of real wages in the agricultural sector at 8 percent per annum during the period (Government of India, 2013, p. 9).

Figure 2: Growth Rate of Land, Labor and Capital Output

Source: (Government of India, 2013, p. 9)

The introduction of the scientific elements, for instance, labor saving mechanization led to the rapid increase of private investment in the agricultural sector. This is attributed to the country’s rigid labor laws and the ever-increasing wages (Shiva, 2013, p. 2).

Although mechanization helped farmers to deal with labor challenges, it caused a sharp decline in capital productivity. Even though moderated by gains from trade deals and debt cancellation, long-term investment in the agricultural sector may be unsustainable due to deteriorating capital productivity (Shiva, 2013, p. 3).

The 12 th five-year plan (2012-2017), which is basically a continuation of the 11 th five-year plan also emphasizes increase of food grains production. The two plans (11 th and 12 th five-year plans) recognize the fact that self-sufficiency in food production can only be attained by increasing the production of staple foods. In India, food security is inextricably linked to food grains.

Therefore, the debates on food shortages are concentrated on rice, wheat, maize and pulses (Sharma & Dinesh, 2011, p. 30). 12th five-year plan is also expected to produce high results and solve a lot of food problems in India.

The 11 th five-year plan helped substantially to make India a food sufficient country, despite the rapid growth of population. In other words, India is currently food secure due to the 11 th five-year plan (IBEF, 2013, p. 9).

Agriculture in India is both a source of food and livelihood. In addition, the sector is very important to the country’s economy. However, the period between 1997 and 2007 was characterized by low agricultural productivity and high levels of food shortage. This forced the Indian government to spend a large amount of money on food import.

On the other hand, the ratio of agricultural imports to the aggregate imports grew by approximately 6.6 percent in the last three decades regardless of the initiated key reforms in the agricultural sector. However, the reform programs were ineffective.

This led to the introduction of the 11 th five-year plan, which was aimed at making India a food-secure country through the production of food grains. The plan significantly helped reverse the situation. As a matter of fact, the 12 th five-year plan, which runs up to 2017, is just a continuation of the 11 th five-year plan. The 12 th five-year plan also aims at increasing the production of food grains, which are staples in India.

Central Statistics Office 2011, Revised Estimates of Annual National Income 2010-11 and Quarterly Estimates of Gross Domestic Product, 2010-11 , Central Statistics Office, New Delhi.

Government of India 2010, Agricultural Statistics at a Glance 2010 . Web.

Government of India 2013, Twelfth Five Year Plan (2012-2017): Economic Sectors , Department of Economic Affairs, Ministry of Finance, New Delhi.

IBEF 2013, The Indian Agriculture Sector: Investments, Growth and Prospects , India Brand Equity Foundation, New Delhi.

Sharma, VP & Dinesh, J 2011, High Value Agriculture in India: past Trends and Future Prospects. Web.

Sharma, VP 2011, India’s Agricultural Development under the New Economic Regime: Policy Perspective and Strategy for the 12 th Five Year Plan , Indian Institute of Management, Ahmedabad.

Shiva, V 2013, Agricultural Sector in India . Web.

Vaidyanathan, A 2010, Agriculture Growth in India: Role of Technology, Incentives and Institutions , Oxford University Press, New York.

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Home » Agriculture » Role of Agriculture in Indian Economy

Role of Agriculture in Indian Economy

Agriculture plays a vital role in the Indian economy.  Over 70 per cent of the rural households depend on agriculture. Agriculture is an important sector of Indian economy as it contributes about 17% to the total GDP and provides employment to around 58% of the population. Indian agriculture has registered impressive growth over last few decades.  The foodgrains production has increased from 51 million tonnes (MT) in 1950-51 to 250MT during 2011-12 highest ever since independence

The share of agriculture in GDP increased to 19.9 per cent in 2020-21 from 17.8 per cent in 2019-20. The last time the contribution of the agriculture sector in GDP was at 20 per cent was in 2003-04.

• India is the biggest exporter of cotton in the world.
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• Sikkim is the first state in the world that claimed 100% organic farming.
• India ranks 2nd in the world in agriculture production.
• India’s world rank in services and industry sector is 9th and 5th respectively.
• Indian agricultural production has increased from 87 USD bn to 459 USD bn in the past 15 years (12% annual growth).

Globally India ranks 9th for the agricultural exports.

• Characteristics and features of Indian Agriculture
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Agriculture is the Backbone of Indian Economy Essay

Agriculture is the backbone of the indian economy.

Agriculture is considered the backbone of Indian economy. Despite the fact that in the last 6 decades of planned development era since India became a Republic, a tremendous success India has achieved in the field of industries, agriculture and allied activities of agriculture still continues to provide employment to around 65 per cent of the total workforce.

Agriculture and allied activities make the single largest contribution to GDP (Gross Domestic Product), accounting for almost 27 per cent of the total.

Agriculture supplies bulk of wage goods required by the non-agricultural sector. It provides raw materials for a large section of industries. Sugar, tea, cotton textiles, jute goods, vegetable oil, etc. industries are regularly fed by agricultural produces. Many cottage industries depend on agricultural operations. The contribution of agriculture to the nation’s Forex (foreign exchange reserve) is also quite significant. Agriculture accounts for about 18 percent share of the total value of India’s export. Agricultural growth has direct impact on poverty eradication.

With an objective of achieving self-sufficiency in the field of agriculture, the initiative of Green revolution were introduced during 1960s. The introduction of HYV seeds for the agriculture of wheat and other grains has given very satisfactory results. Other factors such as agricultural finance, famines, and irrigation methods were also considered. These efforts boosted the Indian economy in a great way.

Thus, the importance of Agriculture in Indian economy and society can never be denied.

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I want an list of comparison between Indian agriculture and Chinese agriculture and United States agriculture

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Essay on Indian Economy for Students and Children

500+ words essay on indian economy.

India is mainly an agricultural economy . Agricultural activities contribute about 50% of the economy. Agriculture involves growing and selling of crops, poultry, fishing, cattle rearing, and animal husbandry. People in India earn their livelihood by involving themselves in many of these activities. These activities are vital to our economy. The Indian economy has seen major growth in the last few decades. The credit for this boom largely goes to the service sector. Agriculture and associated activities have also been improvised to match the global standards and the export of various food products has seen an upward trend thereby adding to the economic growth. The industrial sector does not lag behind a bit. A number of new large scale, as well as small scale industries, have been set up in recent times and these have also proved to have a positive impact on the Indian economy.

Government’s Role in Economic Growth

Majority of the working Indian population was and is still engaged in the agriculture sector. Growing crops, fishing, poultry and animal husbandry were among the tasks undertaken by them. They manufactured handicraft items that were losing their charm with the introduction of the industrial goods. The demand for these goods began to decline. The agricultural activities also did not pay enough.

The government identified these problems as hindering the economic growth of the country and established policies to curb them. Promotion of cottage industry, providing fair wages to the laborers and providing enough means of livelihood to the people were some of the policies laid by the government for the country’s economic growth.

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The Rise of the Industrial Sector

The government of India also promoted the growth of small scale and large scale industry as it understood that agriculture alone would not be able to help in the country’s economic growth. Many industries have been set up since independence. A large number of people shifted from the agricultural sector to the industrial sector in an attempt to earn better.

Today, we have numerous industries manufacturing a large amount of raw material as well as finished goods. The pharmaceutical industry, iron and steel industry , chemical industry, textile industry, automotive industry, timber industry, jute, and paper industry are among some of the industries which have contributed a great deal in our economic growth.

The Growth in Service Sector

The service sector has also helped in the growth of our country. This sector has seen growth in the last few decades. The privatization of the banking and telecom sectors has a positive impact on the service sector. The tourism and hotel industries are also seeing a gradual growth. As per a recent survey, the service sector is contributing to more than 50% of the country’s economy.

Indian Economy after Demonetization

The worst affected were the people in the rural areas who did not have access to internet and plastic money. This affects many big and small businesses in the country very badly. Several of them were shut down as a result of this. While the short term effects of demonetization were devastating, this decision did have a brighter side when looked at from long term perspective.

The positive impact of demonetization on the Indian economy is a breakdown of black money, the decline in fake currency notes, increase in bank deposits, demonetization stopped the flow of black money in the real estate sector to ensure a fair play, increase in digital transactions, cutting monetary support for terrorist activities.

Many of our industries are cash-driven and sudden demonetization left all these industries starving. Also, many of our small scale, as well as large scale manufacturing industries, suffered huge losses thereby impacting the economy of the country negatively. Many factories and shops had to be shut down. This did not only impact the businesses but also the workers employed there. Several people, especially the laborers, lost their jobs.

The Indian economy undergoes several positive changes since independence. It is growing at a good pace. However, the rural regions of our country are still under-developed. The government must make efforts to improve the economic condition of these areas.

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Essay on Agriculture and It’s Significance

Agriculture is the main occupation in India. Two-third of population is dependent on agriculture directly or indirectly.

It is not merely a source of livelihood but a way of life. It is the main source of food, fodder and fuel. It is the basic foundation of economic development.

Agriculture provides highest contribution to national income.

“Agriculture needed top most priority because the Govt. and the nation would both fail to succeed if agriculture could not be successful”

Literally speaking agriculture means the production of crops and live stock on a farm. Generally speaking, agriculture is cultivation of crops. In Economics, agriculture means cultivation of crops along with animal husbandry, poultry, dairy farming, fishing and even forestry.

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Agriculture is the back bone of our economy. Agriculture is important not only from economic point of view but has deep rooted influence on our social, political and cultural life. In the words of Jawahar Lal Nehru, “Agriculture needed top most priority because the Govt. and the nation would both fail to succeed if agriculture could not be successful”

The following points explain the significance of agriculture:

(i) Contribution to National Income:

Contribution to national income from agriculture, forests and other primary activities is 24%. In 1950-51 contribution of agricultural sector to national income was 59% and in 2004-05, it came down to 24.4%. Contribution of agricultural sector in national income is considerable. In rich countries the agriculture is quite developed but contribution is very little. In USA agriculture contributes only 2%. In under-developed countries like India, contribution of agriculture is national income was 27%.

(ii) Main source of Food:

Agriculture provides food for Nation. Before 1947, we had acute food shortage but after 1969 Green Revolution in agriculture has made us self sufficient in food production. In 2003-04, production of rice was 870 lakh metric tonnes and of wheat 721 lakh metric tonnes.

(iii) Agriculture and Industrial development:

For industrial development, agriculture plays active role. It provides essential raw materials to many industries like cotton textiles, jute, sugar, vegetables, oil, tinned food, Cigarettes and rubber etc.

(iv) Sources of Revenue:

Land revenue, excise duty on agro-based goods, taxes on production and sale of agricultural machinery forms a goods part of sources of Govt. Revenue.

(v) Source of Foreign trade:

Foreign trade is associated with agriculture. We export tea, tobacco, spices and coffee etc. Other agricultural exports include cotton, textiles, jute goods and sugar etc. So total share of agricultural exports becomes 70%.

(vi) Transport:

Means of transport are required for transporting food grains from farms to consumers and agricultural raw materials to markets and factories. Transport is also needed for taking chemical fertilizers, seeds, diesel and agricultural equipment from markets and factories to villages and farms.

(vii) Source of saving:

Green revolution has increased the production manifold and farmers become rich. The additional income earned by these farmers can be saved and invested in Banks.

(viii) Capital formation:

Agriculture also helps in capital formation. Surplus income from agriculture production can be invested in other sources like banks, shares etc. Use of tractors and harvesters increase capital formation.

(ix) International importance:

India ranks top position in production of groundnuts and sugarcane. It has second position in production of rice and staple cotton. It has third position in production of tobacco. Our agricultural universities are working as role model for other developing nations.

(x) Way of life:

Agriculture in India is not only a source of livelihood but has become a way life. Our fairs, festivals and customs are influenced by agriculture. In politics; too, agricultural community has say.

(xi) Effect on prices:

Sufficient production of food grains will bring stability in prices of food grains. This brings stability in cost of living and wages also. Agriculture influences the price level. So increased production of agriculture keeps the price stable.

(xii) Source of labour supply:

Agriculture is the main occupation in India. Majority of people live in villages. So labour force in various sectors like police, defence and industries is provided by villages disguised unemployment present in agricultural sector can be used as source of supply for other sectors.

(xiii) Economic development:

India is agricultural state. 71% people live in villages and most of these depend on agriculture. So development of agriculture gives boost is economy. Progress of industry, trade and transport is impossible without progress of agriculture. Stability of prices also depends on agriculture growth.

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Why Agriculture is the Backbone of the Indian Economy

Historical importance.

Agriculture has been the backbone of the Indian economy for centuries, with a rich history of farming practices deeply ingrained in the culture and traditions of the country.

Image Source: Unsplash

Employment Opportunity

Agriculture provides employment to a significant portion of the Indian population, particularly in rural areas, helping to alleviate poverty and create sustainable livelihoods.

Food Security

Agriculture plays a critical role in ensuring food security for India's vast population, as it contributes to the production of staple crops and essential food items.

Contribution to GDP

Agriculture contributes a substantial share to India's Gross Domestic Product (GDP), making it a significant driver of the country's economic growth.

Export Potential

Indian agricultural products have a high export potential, generating foreign exchange earnings and boosting the country's overall trade balance.

Rural Development

Agriculture fosters rural development by creating infrastructure, promoting agro-industries, and improving living standards in rural communities.

Supporting Industries

Agriculture acts as a catalyst for various supporting industries, including seed production, fertilizer manufacturing, machinery, transportation, and more, driving overall economic development.

Source of Income Diversification

Agriculture allows for income diversification by encouraging farmers to engage in allied activities such as dairy farming, poultry, horticulture, and agro-processing.

Environmental Sustainability

Agriculture can be a key driver of environmental sustainability through practices like organic farming, conservation of biodiversity, and water resource management.

Role in Poverty Alleviation

Agriculture plays a crucial role in poverty alleviation by empowering smallholder farmers and marginalized communities, offering them opportunities for economic growth and social upliftment.

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Essay on Indian Economy for Students in 100, 200 and 500 Words

• Updated on  
• Jan 12, 2024

Essay on Indian Economy: The Indian economy is a mixed economy, which is primarily driven by the agriculture and services sectors. The agriculture sector contributes to nearly 20% of India’s GDP. Whereas, the services sector accounts for nearly 50% of the country’s GDP. Furthermore, the manufacturing sector contributes to around 28% of India’s GDP. Globally, India is ranked 142nd and 125th in terms of per capita income and nominal GDP, as per the International Monetary Fund (IMF). 

Since independence, India has transformed from an agricultural country to a mixed economy due to liberalization in 1991. To read more about the Indian economy, keep reading the blog on sample essays about the same. 

Table of Contents

• 1 100 words Essay on Indian Economy
• 2 200 words Essay on Indian Economy
• 3 500 words Essay on Indian Economy

Also Read: Class 12 Macroeconomics

100 words Essay on Indian Economy

The Indian economy is dynamic and rapidly growing. Currently, the economy is characterised by various sectors. The key contributors to the country’s economic growth are the agriculture, services, and manufacturing sectors. However, this was not always the case. India was an agricultural economy when the British left India in 1947 after plundering the sub-continent from 1600 to 1947. 

After independence, India became a part of the global economy in 1991, when the central government adopted the Liberalisation, Privatisation, and Globalisation (LPG) policy. Since then, the Indian economy has expanded in the service and manufacturing sectors significantly. At present, the economy is driven by government initiatives like Make in India and Digital India. However, we have a long way to go. 

Also Read: Find Economics PYQ UPSC Mains Question Bank: 2021-2018

200 words Essay on Indian Economy

Agriculture is the backbone of the Indian economy and of rural livelihoods. It not only employs a majority of the Indian population but also provides raw materials to different industries. In recent years, advancements and innovations in the industrial sector through schemes like the National Manufacturing Policy (NMP), the Technology Upgradation Fund Scheme (TUFS), and Make in India have contributed to the growth of the Indian economy. 

Despite progress and innovations in farming practices and the industrial sector both these industries are facing losses. This is due to limitations in government policies and a lack of awareness among the people of India. Even today, the agricultural sector is affected by outdated farming methods, dependency on weather, and a lack of skilled workers. All these issues need to be addressed by government policies that help promote an environment-friendly agriculture system that is profitable in nature. This will help the Indian economy grow.

Also, investment in business, easy bureaucratic processes, skilled development programmes, and research and development initiatives, will help in creating favourable conditions for the growth of the Indian economy.

Thus, to uplift the Indian economy, it is necessary to maintain a mutually beneficial partnership between the government and the agriculture and manufacturing sectors. The agriculture sector can grow by overcoming the challenges in farming practices. Whereas, the industrial sector will expand due to strategic investments and progressive policies.

Also Read: Indian Students Adding to the UK Economy

500 words Essay on Indian Economy

Policies for the growth of the Indian economy aim at overcoming poverty, reducing wealth gaps, and optimising productivity. The main purpose of bridging the wealth gap between different sections of society is to improve the overall well-being of its population for sustainable economic development.   

1. Overcome of Poverty

As per the Niti Aayog report of July 17, 2023, there is a decrease in the population of people vulnerable to poverty. The percentage of decline is from 24.8 percent to 14.9 percent for four consecutive years, from 2015-2016 to 2019-2021. However, the government is implementing various policies such as the National Education Policy, 2020 (NEP), the National Health Policy, the National Employment Policy (NEP) and many more important programs and policies to decrease the numbers of percentage so that there can be boosted in education, healthcare, and employment opportunities can be raised. 

More educated people with good health will better contribute to the Indian economy. Moreover, creating jobs and small businesses will also lead to increased income levels help reduce poverty and encourage economic growth.

2. Reduction of Wealth Gaps

The second important factor in the rise of the Indian economy is reducing the gap between the poor and the rich. To address the wealth gap, various programmes and schemes, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Pradhan Mantri Jan Dhan Yojna (PMJDY), are implemented. Furthermore, to support business innovators from minority communities, small-scale financing is provided through MUDRA Bank.

For social security, initiatives such as Pradhan Mantri Jeevan Jyoti Yojana and Pradhan Mantri Jeevan Jyoti Yojana are given to encourage social security. These initiatives contribute not only to narrowing the wealth gap through the even distribution of resources but also to establishing a pathway for economic growth in the Indian economy.

3. Fewer Labour Inputs and More Productivity

To encourage both domestic and international companies to invest in the Indian economy, particularly in manufacturing, and innovation, and more importantly, to achieve higher productivity with less input initiatives such as Make in India are encouraged, which not only helps for advancement in technology but also aid in mastering the skills.

The aim of the government of India’s Make in India scheme is to increase productivity and efficiency and reduce dependence on manpower across the different sectors of the Indian economy.

4. Abundance of Goods and Services

The rise in the production of goods and services for a certain period as compared to a previous period helps in the contribution of increased consumption by promoting market competitiveness and driving the innovation of an Indian economy.

Providing consumers with a good number of goods and services not only helps in catering choices but also creates opportunities for boosting business. An Indian economy with a steadfast supply of goods and services leads to stability of prices and improvement in the standard of living of the people.

In conclusion, addressing poverty, reducing the wealth gaps, increasing productivity with fewer labour inputs, and ensuring an abundant supply of goods and services helps in developing the Indian economy. The Indian government is actively implementing policies and technological advancements to encourage these factors and continually revising them to create a broad and steady Indian economy.

Also Read: BA Economics Jobs

Ans. GDP = Consumption + Investment + Government Spending + Net Exports or  GDP = C + I + G +NX. Here, (C) is the consumption that represents private-consumption expenditures by households and nonprofit organizations, (I) is the investment that refers to business expenditures by businesses and home purchases by households, government spending, (G) denotes expenditures on goods and services by the government, and net exports (NX) represents a nation’s exports minus its imports.

Ans. Low per capita income, large population, the service sector and diverse sectors such as manufacturing and agriculture are characteristics of the Indian economy.

Ans. Pandit Jawaharlal Nehru is the father of the Indian economy. 

Ans. Agriculture is the backbone of Indian economy as it helps in providing raw materials as well as raw materials to the various industries. 

Ans. The full form of GDP is Gross Domestic Production.

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Deepika Joshi

Deepika Joshi is an experienced content writer with expertise in creating educational and informative content. She has a year of experience writing content for speeches, essays, NCERT, study abroad and EdTech SaaS. Her strengths lie in conducting thorough research and ananlysis to provide accurate and up-to-date information to readers. She enjoys staying updated on new skills and knowledge, particulary in education domain. In her free time, she loves to read articles, and blogs with related to her field to further expand her expertise. In personal life, she loves creative writing and aspire to connect with innovative people who have fresh ideas to offer.

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• Essay On Indian Farmer

Indian Farmer Essay

500+ words essay on indian farmer.

Farmers are the backbone of the Indian Economy. More than half of the Indian population relies on Agriculture as a source of income. Farmers not only make the country secure by providing food, fodder and other raw materials as feedstock for industries, but they also serve as a source of livelihood for the majority of the Indian population. Sadly, though farmers feed the entire population, they sometimes sleep without having their night meals. In this essay on an Indian Farmer, we will be discussing the role of farmers and the problems faced by them. Students must go through this CBSE essay to get ideas so they can write essays by themselves.

Importance and Role of Indian Farmers

Farmers are the soul of the nation. Agriculture is the only means of living for almost two-thirds of the employed class in India. Farmers produce crops, pulses and vegetables which are needed by everyone. They work extremely hard so we can have food on our table every day. So, whenever we have a meal or eat food, we should thank the farmer.

Farmers in India are the largest producer of pulses, rice, wheat, spices and spice products. They are also involved in other small businesses such as dairy, meat, poultry, fisheries, food grains etc. According to the Economic Survey 2020-2021, the share of agriculture in the gross domestic product (GDP) has reached almost 20 per cent. India has also emerged as the second-largest producer of fruits and vegetables in the world.

Issues and Challenges of Indian Farmers and their Current Situation

Farmers face various issues and challenges related to agriculture. Some of them are poorly maintained irrigation systems and a lack of good extension services. Farmers’ access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation. India has inadequate infrastructure and services for farmers because of low investment. Most farmers hold small areas of land due to which they are restricted to use traditional methods of farming and limit productivity. Whereas farmers with large pieces of land implement modern agricultural techniques and boost productivity.

If small farmers want to increase their production, they have to use good quality seeds, proper irrigation systems, advanced tools and techniques of farming, pesticides, fertilizers etc. For all this, they need money, due to which they have no choice but to take debt or loans from banks. They have immense pressure to produce crops so as to yield profit. In case their crop fails, all their effort goes in vain. In fact, then they are not able to produce enough to even fill the stomachs of their families.

Change is happening in rural India but it still has a long way to go. Farmers have benefited from improved farming techniques but the growth is not equitable. The effort should be to stop the migration of farmers to urban areas. To make agriculture successful and profitable, it is vital that proper thrust be given to the improvement of the condition of marginal and small farmers.

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Frequently asked Questions on Indian farmer Essay

What is the role of farmers.

A person is someone who is engaged in agriculture and raising livestock for a living.

What is the latest bill that has been passed in India for farmers?

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill is the newest bill passed for farmers in 2020.

Are there different types of farmers in India?

Yes, the main types of farmers in India are Marginal farmers, Small farmers and Semi-medium farmers.

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Essay on Indian Economy for Students in English | 500 Words Essay

December 20, 2020 by Sandeep

Essay on Indian Economy: India is mainly an agrarian economy with agricultural supplies contributing up to 50% of the GDP index. The government has created fair policies with wage revisions and labourers rights to boost economic growth. The service sectors, manufacturing units, iron and steel companies, chemical and textile sectors, automobile industries contribute to the economy of the country. Privatisation of many sectors along with demonetization has affected both big and small businesses in the country.

Essay on Indian Economy 500 Words in English

Below we have provided Indian Economy Essay in English, written in easy and simple words for class 6, 7, 8, 9 and 10 school students.

“There can be economy only where there is efficiency.” – Benjamin Disraeli

Indian economy is the fifth largest economy in the world currently. It is a developing market economy. The economic growth of India has even surpassed that of China in recent years. India has been able to successfully jump up ranks in various indexes, including the Ease of doing business index. Agriculture still remains the largest employer in the country, with the construction and real estate sector right behind it. India is the world’s second-largest coal and cement producer. The government has had a major role in accelerating the economic growth of the country.

The way industries operate in our country has been enhanced by the Industrial Policy. Many industries have been freed from the system of licensing and have no restriction on importing new and latest technology from other countries. The government has also taken up disinvestment in the industries where it is unprofitable. The focus on privatisation is being increased to intensify healthy competition. The government is also making efforts to revive and promote small scale industries and businesses.

The New Trade Policy has made it extremely easy for traders to carry out imports and exports. The trade of all items barring a restricted few has been allowed. Also, the tax on many items has been abolished, while for others, the amount has been visibly minimised. A lot of incentives are also being provided to exporters to encourage foreign trade and gain foreign currency.

History of the Indian Economy

For continuous 1700 years starting from the 1st century A.D., the Indian economy constituted about 35 to 40 percent of the world’s GDP and was the topmost flourishing economy. The Indus Valley civilisation proved to provide a form of permanent settlement to the people of the country alongside efficient water supply, urban planning and sanitation.

The silk route provides proof of early Indian trade. Under the Mughal empire, the Indian economy thrived and prospered. It was during this time that a focus on industrial production was also seen. Under the British rule, the Indian economy suffered some significant setbacks and was downtrodden. There were major changes seen in the agricultural sector. The commercialisation of agriculture increased. Farmers were forced to grow cash crops that were used in trade, rather than producing food crops.

This resulted in numerous famines. The once rich handicrafts and handloom sector also dipped and sunk during the British Raj. However, the colonial rule is responsible for giving the country railways, a legal system and a single currency exchange rate. The British era in India was rather exploitative, but our economy has come a long way since then with the help of policies pertaining to privatisation, liberalisation and globalisation .

Sectors of the Indian Economy

As the Indian economy has vastly diversified and grown in the previous years, the GDP contributed by the agricultural sector has reduced. However, it still continues to employ more than 50 percent of the country’s population . India is the largest producer of milk, pulses and jute and is the second-largest producer of wheat, rice and cotton. The agricultural sector accounts for about 20% of India’s GDP.

The main industries included in the Indian industrial sector include textile, construction, power, food processing, etc. The industrial sector employs around 22 percent of the country’s workforce and accounts for 26 percent of India’s GDP. Foreign Direct Investment is one measure by the government, which has increased foreign investments in the country, leading to further growth in this sector.

The services sector contributes the maximum to the GDP of the country. It includes financial services, aviation, insurance, hospitality, entertainment, etc. This sector employs around 23 percent of the Indian population. The main reason why the service sector has been able to do exceedingly well is because of outsourcing. The working population here is skilled, highly educated and cheaper than the labour in other countries.

Problems facing the Indian Economy

Unemployment is a problematic issue for the working-age population of India. The rate of unemployment has increased, and so has the population between the age bracket of 15-59 years. This unemployment is prevalent in the rural as well as the urban areas and is more widespread among the unskilled workers. A significant chunk, including women, especially those that live in rural areas are illiterate and have low educational standards. This leaves so much potential untapped and opportunities unexplored.