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Class : 11
Unit : Economics

Discuss the role or importance of agriculture in Nepal.

Ans : The role or importance of agriculture in Nepal are as follow: i) Sources of food:- Agriculture Provides various staple food crops and cash crops, meat production, fruits, dairy products, vegetable etc. which are essential for the people for their consumption. ii) Source of livelihood:- The main source of livelihood for many people in Nepal is agriculture. Approximately 66% of total populations of Nepal are engaged in agriculture sector for their survival. These people are also engage in livestock, poultry farming, and bee keeping etc. which also depends on agriculture. iii) Source of employment opportunities:- Approximately 66% of the total population of a country are getting employment opportunities in agriculture sector of Nepal. Agriculture provides direct and indirect employment opportunities to unskilled, semi-skilled and highly skilled manpower in a agro based industries. iv) Supplier of industrial raw materials:- Agricultural sector is necessary for supply of raw materials for agro industries. Agriculture sector provides raw materials such as raw jute, cotton, herbs, sugarcane, etc. as input to relate industries. v) Basis of foreign trade:- Nepal export trade is dependent on agriculture. The main export items of Nepal are jute, tea, coffee, skin of animals, oil seeds, Ginger, medicinal herbs etc. Agriculture sector contributes 70% of the total export. vi) Sources of government revenue:- Agriculture sector is one of the main source of government revenue. The Government of Nepal generates its revenue through land, tax, registration fees, water tax, export duty etc. vii) Maintain environmental balance:- Agriculture promotes healthy environment by providing greenery and forestry in the country. It help to protect bio-diversity and helps in preventing soil erosion. viii) Improve living standard of rural people:- The development of agriculture sector helps to develop other sector (industry, trade and commerce). As a result, it helps to increase employment opportunities for rural people and intern increases their purchasing power and helps to raise their standard of living. ix) Source of national income:- Agriculture is the main source of National income in Nepal. About 66% of total active populations are engaged in agriculture farming. And about 32% of total GDP is contributed by agriculture sector. x) Increase in rate of savings, capital formation and economic development:- Agriculture sectors provide employment opportunities directly and indirectly. This inturned generates income for the people. As income increases their savings also increases. The saved money ultimately leads to capital formation. Capital will be for the utilize in public and private sector as in investment. As a result it leads to economic development in our country.
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