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Agriculture is the primary sector of Indian economy and agriculture along with the ancillary sectors like forestry, horticulture, and fishing employed over 50% of the country's total population. Although in the GDP the share of agriculture is constantly falling, still it remains the largest economic sector and plays a major role in the socio-economic development of India. In India the state governments are responsible for the output of agriculture and the financial policies are formulated by the central government. India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper.

Role of Agriculture in Indian economy at a glance:
Agriculture in India got an impetus with the research work under the the Indian Agricultural Research Institute (IARI) established in 1905. The central body in agriculture and its allied fields is the Indian Council of Agricultural Research. The agriculture comprises an important segment of the Indian budget passed every year. According to the report of the union budget of 2007-08, in agriculture, farm credit increased to ` 125,309 crore in 2004-05; expected to increase to ` 175,000 crore in 2006-07 with addition of 50 lakh farmers. The farmers to receive short-term credit at 7 per cent, with an upper limit of ` 300,000 on the principal amount.

The National Agricultural Insurance Scheme will continue from the previous year. In the plantation sector of agriculture a special purpose Tea Fund is to be setup, expected contribution of ` 100 crore in 2006-07. While in the horticultures and fisheries segment under the agriculture, terminal markets are to be established on PPP model-` 150 crore set aside for this in 2006-07 under National Horticulture Mission. Moreover, Central Institute of Horticulture to be established in Nagaland and National Fisheries Development Board to be appointed.

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