Role of agriculture in Indian economy is as follows: 

Means of Employment: Agriculture directly provides employment to 55.6% population of India. It supplies raw materials to many ancillary occupations; like animal husbandry, fisheries and horticulture and also to many industries. Thus, agriculture is an indirect source of employment to many other people.

Contribution to GDP: Agriculture and related occupations have major contribution in GDP. In terms of price level of 1993-94; contribution of agriculture in GDP was 55.11% in 1951 and decreased to 44.26% in 1990. In terms price level of 1999-2000; contribution of agriculture to GDP was 17.8% in 2011-12 and came down to 15.35% in 2011-12. This reduction has been mainly because of industrial development and because of growth in secondary and tertiary sectors.

Contribution to International Trade: India has a share of 2.07% in international trade in agricultural products. India is the 10th largest nation in terms of exports of agricultural products. Agriculture is the fourth largest sector in exports from India. Tea, sugar, oilseeds, tobacco, spices, fresh fruits and basmati rice are the main items of export. Other agricultural products like jute, cloth, poultry, etc. are also exported. Import is mainly composed of cereals.

Raw Materials for Industry: Many industries get raw materials from agriculture, e.g. textiles industry, sugarcane industry, vegetable oil industry, jute industry, rubber industry, spice industry, etc.

Market of Industrial Products: India’s 60% population lives in rural areas which is dependent on agriculture. Hence, this sector provides the market for farm equipments; like tractor, harvester, and also for fertilizers, insecticides, etc.