INTRODUCTION

Agriculture and industry have traditionally been viewed as two separate sectors both in terms of
their characteristics and their role in economic growth. Agriculture has been considered the
hallmark of the first stage of development, while the degree of industrialization has been taken
to be the most relevant indicator of a countrys progress along the development path. Moreover,
the proper strategy for growth has often been conceived as one of a more or less gradual shift
from agriculture to industry, with the onus on agriculture to finance the shift in the first stage.
This view, however, no longer appears to be appropriate. On the one hand, the role of
agriculture in the process of development has been reappraised and revalued from the point of
view of its contribution to industrialization and its importance for harmonious development and
political and economic stability. On the other hand, agriculture itself has become a form of
industry, as technology, vertical integration, marketing and consumer preferences have evolved
along lines that closely follow the profile of comparable industrial sectors, often of notable
complexity and richness of variety and scope. This has meant that the deployment of resources
in agriculture has become increasingly responsive to market forces and increasingly integrated
in the network of industrial interdependencies. Agricultural products are shaped by technologies
of growing complexity, and they incorporate the results of major research and development
efforts as well as increasingly sophisticated individual and collective preferences regarding
nutrition, health and the environment. While one can still distinguish the phase of production of
raw materials from the processing and transformation phase, often this distinction is blurred by
the complexity of technology and the extent of vertical integration: the industrialization of
agriculture and development of agroprocessing industries is thus a joint process which is
generating an entirely new type of industrial sector.


Inter Relationship Between Agri And Industrial Development

The agri. and industrial sectors are not rival to each other, rather they both contribute to
economic development of a country. In case of developing countries major share of population is
attached with agriculture. Therefore, if agri. sector is developed it will provide food both to
rising agri. and non-agri. sectors of the economy. Moreover, agri. will also provide raw material
to the industries which are based upon agri. It means agri. development will provide food as well
as raw material. Again, the agri. development leads to increase the demand for industrial goods.
It will provide a stimulus to different sectors of the economy. The agri. development will give
rise to surplus through mixed and commercial farming. The agri. devel, oment may be helpful in
raising exports. In this way, foreign exchange earnings of the country will increase which could
be used to import capital goods. In this way the industrial development would be possible,
through agri. development.
The agri. development may have the effect of raising agri. productivity. The increased agri.
productivity leads to generate agri. surplus. The share of agri. sector in the total distribution of
income will increase. The increase in agri. production will give rise to revenues to the govt.
because of imposition of agri. taxes. Again, the agri. development will create the demand for
fertilizers, pesticides, machinery, tractors and insecticides etc., as well as for consumer durables
etc. In this way, the industrial sector will also grow.
When the productivity in the export sector of agriculture increases. The agri. exports will
increase leading to generate foreign exchange earnings. Again, the agri.development will also
save the foreign exchange earnings as it will create self-sufficiency and reduce the imports of
foods and raw material etc. Such earned, and saved foreign exchange can be utilized for the
capital imports to be used for industrialization.

The agri and industrial sectors are not rival to each other, rather
they both contribute to economic development of a country. In case
of developing countries major share of population is attached with agriculture.
Therefore, if agri. sector is developed it will provide food both to rising agri. and non
agri. sectors of the economy. Moreover, agri will also provide raw material to
the industries which are based upon agri. It means agri. development will provide food
as well as dissolves rural handicraft industry, and gives rise to a process by which
subsistence agri is commercialized.
1. It is the industrial development which makes it possible to produce the capital
goodsand other agri. equipment for agri. sector. It means that industrial
development permits the mixed and commercialized farming. Consequently, agri.
sector will also grow leading to increase the agri. outputs and incomes. Again,
industrial development makes available machinery, fertilizers and pesticides which
bring change in agriculture.
1. It is the industrial development which promotes urbanization in the country. As a
result, employment opportunities increase. The rural people working in the
industrial towns will send moneys back to their families who spend them on the
purchase of agri. inputs, cattle, and poultry etc. In this way, other sectors of the
economy will also grow. The industrial growth also leads to the growth of infra-
structure in the economy. Means of transportation and communication are
developed. In this way, the market will be extended,
-
and the rural and urban areas
are connected in a better way.Again, the industrial development also benefits those
people who reside in those rural areas which are adjacent to the cities. On thereon
side they get the jobs. While on the other side, they get windfall gains as the prices
of their lands etc. increase.
1. Because of industrial growth people acquire the technical knowledge, vocational
and
*
professional education, research and training like facilities. This will have the
effect of widening the outlook of the people, particularly the people from rural areas.
Again, it will develop labor market and transfer of labor out of agri. sector. They will
help t6 transform the agri. sector.
2. Because of industrial growth, the production of so many goods. becomes possible,
particularly the luxuries and consumer durable goods are also produced. The
villagers will desire to purchase them. Therefore, they will work hard to raise their
incomes so that
3. sectors of the economy. The agri. development will give rise to surplus through
mixed and commercial farming. The agri. development may be helpful in raising
exports. In this way, foreign exchange earnings of the country will increase which
could be used to import capital goods. In this way the industrial development would
be possible, through agri. development.
A. The agri. development may have the effect of raising agri. productivity. The
increased agri. productivity leads to generate agri. surplus. The share of agri.
sector in the total distribution of income will increase. The increase in agri.
production will give rise to revenues to the govt. because of imposition of agri.
taxes. Again, the agri. development will create the demand for fertilizers,
pesticides, machinery, tractors and insecticides etc., as well as for consumer
durables etc. In this way, the industrial sector will also.grow.
B. When the productivity in the export. sector of agriculture increases.
The agri. exports will increase leading to generate foreign exchange earnings.
Again, the agri. development will also save the foreign exchange earnings as it
will create self-sufficiency and reduce the imports of foods and raw material etc.
Such earned, and saved foreign exchange can be utilized for the capital imports to
be used for industrialization.