12th CommerceEconomicsHSC Projects

Find Out the Changes in the Size & Patterns of India’s Primary Sector Contribution to National Income


The primary sector of the economy is that the industry of an economy, creating direct use of the resource. This includes agriculture, forestry, fishing, and mining. In distinction, the secondary produces factory-made merchandise, and also the tertiary sector produces services. The first sector is typically most significant in less-developed countries, and generally smaller in industrial countries. The producing industries that mixture, pack, package, purify, or method the raw materials near to the first producers are ordinarily thought-about a part of this sector, particularly if the material is unsuitable purchasable or tough to move long distances. We will Find Out of the Changes in the Size and Patterns of the Contribution of Primary Sector to National Income of India. We will Find Out of the Changes in the Size and Patterns of the Contribution of Primary Sector to National Income of India by taking an example of industry


This project aims to find out the changes in the size and patterns of the contribution of the primary sector to the national income of India.

There are many objectives for this project.  Major few objectives are given below.


  •  To understand what is primary sector
  •  To know how it contributes to national income
  •  To understand the national income of the country
  •  To know how the primary sector affects national income
  •  To ascertain any doubts regarding the Primary sector
  •  To understand the role of the primary sector in national income


The method used to gather the required information on the project is an internet survey method. The Internet has extensive information on this subject. It has a vast collection of data on contributions made by the primary sector in national income. The survey has unveiled information about this topic, which has covered major few points which are listed below and explained in a detailed report of the project.

  • What is the primary sector?
  • What is the national income?
  • What role does the primary sector play in national income?
  • How changes in the primary sector affect national income?
  • The contribution of the agricultural sector in GDP


  • What is the primary sector?

The primary sector in India is the sector that is essentially conditional the supply of natural resources to manufacture the products and conjointly to execute numerous processes. The services during this sector are entirely conditional the supply of natural resources to stay the regular operations running.

As we’ve got a clear plan for this sector is, the most effective example of debating during this sector is that the agriculture sector. The opposite examples during this sector embrace fishing and biology; however, agriculture accounts for the biggest during this sector.

One of the main drawbacks that this sector faces is that the underemployment and also the disguised employment. Underemployment accounts for the employees not operating to the most effective of their capabilities, whereas the latter accounts for the employees who are not operating to their true potential.

As an answer to the issues, the state, moreover, because the national government will increase the funds for the irrigation facilities and supply loans for purchasing high-quality seeds and fertilizers.

  • What is the national income?

National income is an unsure term that is employed interchangeably with the national dividend, national output, and national expenditure. On this basis, value has been outlined in an exceeding range of the way. In common formulation, value suggests that the whole worth of products and services created annually in an exceedingly country.

In different words, the whole quantity of financial gain accruing to a rustic from economic activities in an exceedingly year is understood as value. It includes payments created to any or all resources within the type of wages, interest, rent, and profits.

Gross national income (GNI) is outlined as gross domestic product (Gross Domestic Product; income generated by production activities on economic territory of that specific country) and the net receipts from wages, salaries, property financial gain taxes, and subsidies of the country’s voters abroad minus the financial gain earned  within the domestic economy by nonresidents.

While per capita gross domestic product is that the indicator most ordinarily accustomed compare financial gain levels, there are two different measures are typically most popular by analysts: per capita Gross value (GNI) and web value (NNI). Whereas gross domestic product refers to the financial gain generated by production activities on the economic territory of the country, GNI measures the financial gain earned by the residents of a rustic, whether or not generated on the domestic territory or abroad, NNI is GNI web of depreciation.

  • What role does the primary sector play in national income?

The primary sector has been taking part in an oversized role in our Indian economy. From ancient times, we tend to witness that our ancestors to try and do this stuff solely like agriculture, agriculture, fishing, etc. as a result of there have been not a lot of facilities on the market. They, to fulfill their daily wants, do farming. They consume that by themselves as a result of there have been not a lot of demand as most are engaged in agriculture.

Now quote contemporary world India is self-relevant. Agriculture contributes concerning 17.5 you take care of the value of our country, .nearly 48.9% of our population engaged in these activities. The primary sector provides the fundamentals for industries. We manufacture a bulk of merchandise kind agriculture. And these products have an enormous demand within the international market. Agriculture and fishing are growing unceasingly. India ranks 2d in terms of fishing. India ranks second worldwide in Rice production. India ranks fourth in wheat production.

Key points that show its positive have an effect on in Indian economy.

  • An increase in exports can increase our economic process.
  • It will facilitate in increasing our value
  • a large number of individuals are utilized
  • If this stuff grows, India does not have to be compelled to import a lot of.
  • How changes in the primary sector affect national income?

Many shares of stuff to the industries area unit coming back from the agricultural sector solely. It’s not solely turning into living to individuals; however, additionally, it’s turning into a serious supply to industries as stuff sources to the companies. An earlier major portion of the gross domestic product is generating from the agricultural sector solely; however, at this time, it’s declined to around eighteen. One issue that we’d like to recollect that India is fed up with natural resources.

The PRIMARY sector contributes terrorist organizations to the GDP(2011). The share of the primary sector has declined from around 59 in 1950-51. This decline is primarily because of a substantial decline within the contribution created by agriculture to the gross domestic product from 57 in 1950-51 to fifteen in 2009-10.

The grime contradiction in terms here is that the continuing decline within the share of agriculture in the gross domestic product among not such a pointy decline within the share of the population engaged during this low productivity primary activity. Agriculture includes a share of fifty eight.2% of the entire manpower as per the Economic Survey of India 2010-11.

This points to the miserable condition of Indian farmers and explains many farmer suicide cases in Vidarbha, a geographical region.

The declining share producing and therefore the synchronic tremendous increase in this of service is indicative of a shift within India’s economic definitions from an underdeveloped manufacturing hub for western superpowers to a developing hub of services starting from retail units to BPOs, from IT parks to online looking revolution and foreign investment opportunities.

  • The contribution of the agricultural sector to GDP

As per the Economic Survey 2017–2018, the agriculture sector has contributed regarding 16 PF to Indias gross domestic product at current value.

The year of growth is just within the vary of 2.1 to 2.3% in the agricultural sector alone. If, as foreseen by the present government to double the farming financial gain by 2022, you want to be able to grow at twelve-tone music year on year basis for the following four years.

GDP From Agriculture in India attenuate to 3461.02 in Billion within the third quarter of 2018 from 4197.47 in Billion within the second quarter of 2018. Gross domestic product From Agriculture in India averaged 4037.84 agency Billion from 2011 till 2018, reaching an all-time high of 5666.82 INR Billion within the fourth quarter of 2017 and a record low of 2690.74 INR Billion within the third quarter of 2011.


The primary sector contributes quite 200th to the value of India. Its employment share is quite 55th. It’s the foremost toiling sector of the Indian economy. It covers agriculture, dairy, fishing, the biology that all contribute to the Indian economy.

The primary sector is the most significant sector of the Indian economy. As the ways of farming modified and the agriculture sector began to prosper, it created far more food than before. The primary sector accounts for 17 percent of India’s value and employs 51 % of the labor force in India. More than half the staff within the country are operating within the primary sector principally in agriculture, manufacturing 1 / 4 of value.


To conclude my findings,

National income may be cash live of the worth of all products and services created in a very year by a nation. The National Sample Survey defines value as “money measures of net aggregates of all commodities and services accruing to the inhabitants of a community throughout a particular amount.” consistent with the value Committee of India” A value estimate measures the degree of commodities and services turned out- throughout a given amount, counted with duplication.”

According to Froyen, “National income is that the total of all factor earnings from the current production of products and services. issue earnings are incomes of things of production.” within the same vein, Gardner Ackley defines “National financial gain is that the total of all (a) wages, salaries, commissions, bonuses and different sort of incomes, (b) profits from rentals and royalties, (c) interest, (d) profit.”


The discussion has revealed:

”In early amount once independence the assembly of primary to capital merchandise were 2.5: 1 ratio, to industrialise our nation a lot of importance got to capital merchandise affected on to 1:1 magnitude relation , and once 1991 to contend with international market a lot of industries fashioned and capital merchandise production multiplied results of that we tend to are a lot of expedited with factory-made and technological merchandise however still a lot of millions of Indians effort for food and cattle, and poultry farming are in poor growth. Mining and different extraction sector square measure a lot of poor than service and producing sector

Failure in the primary sector assures the worst economic imbalance.”


There are a few opinions and suggestions by family and friends whom I discussed my project findings with; they are given below:

  • The primary sector should be given more importance and acknowledgment that it needs.
  • The primary sector should have more privileges from the government.
  • It shouldn’t be undermined because of the service sector.
  • Awareness of the role of the primary sector in our economy should be made.


My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work.

I duly acknowledge the encouragement and support from the research scholars in the department, and all my colleagues and friends.

It gives me immense pleasure to take the opportunity to all the people who are directly or indirectly involved in the completion of my project based on Find out the changes in the size and patterns of the contribution of the primary sector to the national income of India.

With deep reverence, I offer my deepest gratitude _____, without whom this project could not have been fulfilled.

Lastly, I thank Almighty, my parents, family members, friends, and teachers for their constant encouragement and support, without which this project would not be possible.

Name of School/College


  • https://www.toppr.com/guides/economics/sectors-of-the-indian-economy/introduction-sectors-indian-economy/
  • http://www.economicsdiscussion.net/national-income/national-income-definitions-circular-flow-and-concepts-with-diagram/6171
  • http://wikiprogress.org/articles/economy/national-income/
  • https://www.quora.com/What-is-role-of-primary-sector-in-Indian-economy
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