Agriculture sector provides inputs for industrial production. A piece of cloth made in a textile industry will not be produced until cotton is not grown and is available for production. Increase in agriculture production will make available necessary inputs for industrial production.
Sunday, February 28, 2010
Increases Productivity Gains
If agriculture production grows, the cost of raw materials will decrease and their quantity demanded will increase. Industrialists will take advantage of the economical raw material to produce on a large scale. This large scale production will decrease the unit cost of production and increase the efficiency of industry. Therefore, for large scale industrial production, it is necessary that agriculture sector must also grow.
Market for Industrial Production
Industrial production includes a lot of products which are consumed by the agriculture sector. Fertilizer, tractor, chemicals are industrial products which are used by agriculture sector. Therefore, if agriculture production will grow, there will be more demand for tractors, fertilizers and chemicals and hence industrial production will also grow. This will benefit both the sectors.
Budget
Budget is a document which summarize the revenues and expenditures of the past year and sets targets for the next year and gives a detailed plan for achieving the targets. It also gives detail from which sources the revenue will come and what will be the respective heads of the expenditure both the current and non-current expenditure. It also gives detail to the sources of funds from which the deficit would be finance.
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