The interdependence ofagricultureandindustryhelps the development of both thesectors. The most important aspect of this interdependenceis that the products of one serve as important inputs for the other. Growth of onesector, thus means ample supply of inputs for the other.

i)Supply of raw materials to industries:

Many industries look to the agricultural sector for supply of raw material.

(ii)Supply of wage goods:

The market arrivals of food grains can be taken to represent what agriculture can spare for the non-agricultural sector as wage goods provided the market arrivals do not contain any distress sale on the part of the agriculturists. With this provision in view, we give below the market arrivals in the state of Punjab for the last 30 years or so.

Punjab agriculture has developed at a much rapid pace as compared with that in the other states of the country and its rate of growth of population is one of the lowest in the country. So, there is a reason to believe that whatever is sold in the market is a genuine surplus spared by the agricultural sector.

(iii) Agriculture and foreign trade:

Though India has been importing food grains for quite sometimes after independence, it has also been exporting the products of Argo-based industries , thereby , helping the country , not only to pay for the food imports but also for other imports which includes capital goods also. It is important to note here that the major traditional exports of India are the cotton textiles, Jute textiles and tea.