Role of Agriculture Effect on Economic Development in Karnataka

Abstract

The role of agriculture in economic development can be traced since the time immemorial, but particularly in the eighteenth century in the writings of the Physiocrates in France.  But the mercantilist had looked upon trade, particularly foreign trade and commerce, as the most important sector for initiating economic development.  The Physiocrates argued that the non-agricultural sector was sterile, it means constant and unproductive.  It does not generate any economic surplus or net product.  Therefore, the agricultural sector plays the most strategic role in economic development.  The rate of growth of non-agricultural sectors is limited compare to the growth of agricultural sector.