Because most underdeveloped and developing countries rely on agriculture, they are typically industrially backward. In most of these countries, industrialization is thought to do more harm than good. As a result, industrialization is usually opposed in these countries. This opposition is not without justification. Even so, both of these must go hand in hand. Only when agriculture is modernized can industrialization proceed with significant space and without hindrance. Similarly, there can be no rapid agricultural advancement without industrialization. While discussing the relationship between agriculture and industry prof. Kuchhal said, It has been marked in the economic history of many industrialized countries that improvement in agriculture fostered and smoothened the ways in which a prosperous and expanding agriculture formed that basis for the concurrent and subsequent establishment and expansion of manufacturing.” in this article we will discuss that what is the relationship of the industry with agriculture, agriculturists consume the industrial products that create a market for the industry, and here we will also discuss that how industrialization influenced the income of agriculture. the concept of industrialization is the most important to understand Industrial Economics.  so let’s start. 


No country is solely industrialized.

Another fact is that no country on the earth is entirely industrialized or entirely agricultural. Some countries are less agricultural and more industrialized, while others are more agricultural and less industrialized. Pei Kang Chang concerning Agriculture and Industrialization has said, However industrialized a country may be, it cannot continue its economic activities and develop then without, at the same time, either maintaining a fair and changing balance between agriculture and industry within its own boundaries or security a close contact, through export and import, with agricultural enterprises of other countries.”


The industrial product uses

The fact that agriculture provides several benefits to the industry is another evidence of the two sectors’ tight ties. In particular, to fill the need for semi-skilled and skilled labor, the industry can easily access surplus manpower from agriculture. Once more, one discovers that finished commodities from several industries serve as the raw material for many others. Money from agriculture is used to buy products made in the industry. A.U.N. report says, “Over rapid and unbalanced growth of the agriculture sector, many give rise to phenomena which in the long run are likely to retard economic development balance of payments differences, difficulties, inflation, excessive urbanization and disruption of accepted social patterns”

Agriculture has always given industrialization the fundamental operating capital it needs.


Objection to Industrialization.

In developing and underdeveloped nations, there is a sizable group that is opposed to industrialization. They claim that industrialization can only occur at the expense of agricultural stagnation. Their primary contention is that the development of the industrial sector can only be slowed down or ignored if agricultural development is not taken into account. Agriculture must lose as the industry grows.

Other significant Points for the objection of Industrialization are:

Another significant criticism is that, as machines start to replace people, those working on the farm inevitably become surplus, leading to an oversupply of agricultural labor.

Still another objection is that industry becomes a drain on agricultural manpower. The sector hires the robust and muscular from the fields as manual laborers and employees at subpar rates. Then another objection raised is that the industry gives a serious setback to certain fundamental principles of an agricultural economy. The agricultural economy is a village based all over the world, whereas the industrial economy means urbanization, and the problems of the rural economy are different from those of the urban economy.

Both are as complementary to each other.

Since they depend on one another, the two sectors of the national economy cannot develop or expand independently. Not only that agriculture provides the raw material for the industry but at the same time, it also provides foodstuffs for industrial workers. In addition to this, with industrialization living standards and purchasing power of the people will go up. Which in turn will increase the value of agricultural farms and their products. The tendency of lowering the price of agricultural products and farms by monopolistic will be checked and agriculturists will be in a position to save for rainy days and face difficult times instead of immediately selling their products at throw-away rates. On account of the demands of their products, their standard will go up and they will have improved economic standards. With a better income, they will also be in a position to purchase better fertilizer and implements in addition to seeds and water facilities. They will be physically better and fewer victims of deceases and illiteracy. Rural indebtedness will decrease.

Prof. Lewes remarks

“The secret of most development problems is to maintain a proper balance between agriculture and industry.”

Staley remarks

We may better conclude this discussion with Staley, who has said in his “The Future of Undeveloped Countries” that “Improvement in the productivity of agriculture is one of the most solid means of promoting industrialization unless agriculture does modernize substantially, industrial expansion in most under-developed countries is likely to proceed at slow speed due to necessary purchasing power. On the other hand, agricultural improvements cannot for very far unless there is industrial development to take up the released manpower and to provide a solid technical base for the equipment and services essential for modernized agriculture.”

Both are as contradictory to each other

One industry can only grow at the expense of another, or even accept that one is a burden on the other. Even though there is a segment that holds this opinion, there is also a strong section that holds this opinion for the following reasons:

a) Only one industry can develop because of financial limitations.

b) People who are surplus in agriculture are employed by the industry.

c) In contrast to the rural pattern, the industry promotes urbanization.

d) Industry starts to use up the labor in agriculture.

It’s a prevalent misconception that agriculture and industry must complement one another and cannot work in opposition to one another.

How is Agricultural Productivity influenced by Industrialization or the relationship of Industrialization with Agriculture Income?

Agriculture productivity and industrialization are related and have several mutually reinforcing effects. In contrast relation to industry revenue, which refers to earnings from the exchange of agricultural products for manufactured items, productivity refers to actual physical production. If these interpretations are correct, it is clear that industrialization and agricultural revenue are interdependent.

Where Industrialization cannot improve Agricultural Productivity?

Even while industrialization and agricultural production are interdependent, there are occasions when factors beyond human control prevent modernization from increasing agricultural output, such as when the industry is unable to improve soil fertility. Then there are factors like rainfall, temperature, and humidity that may hurt agricultural productivity, but industrialization will not make a difference. Similar to how industrialization cannot expand the total area of land, it also cannot destroy mountains, stop the flow of rivers and oceans, or turn deserts into arable land. Similar to this, in the majority of nations, agricultural production depends on rainfall, especially in underdeveloped and developing nations, and industrialization cannot significantly increase a nation’s rainfall.

Where Industrialization can affect Agricultural Productivity?

Industrialization makes it possible to till the soil more thoroughly, and it also makes it possible to supply better and more regulated water facilities and controls. Additionally, it aids in supplying better tilling equipment, agriculture expertise, and procedures. It is obvious from the fact that only industrially developed nations have the highest agricultural output. Perhaps no other nation in the world combines an advanced agriculture sector with a lagging industrial one. On the other hand, many nations have low agricultural productivity and are industrially backward.

Then, as more land is plowed, less uncultivable land becomes available for farming, increasing the amount of cultivable land, which in turn influences agricultural output and income.

The industry, which is typically able to absorb any spare workforce, is the ideal place to use surplus farm manpower. This industry can aid in boosting farm revenue.

There will be fewer individuals available for farm work as a result of the industry’s absorption of surplus agricultural labor. Naturally, they will need less agricultural produce for their consumption, and more will be sold, increasing the revenue for that left at home to take care of the labor.


The aforementioned statement makes it evident that industrialization can significantly increase agricultural productivity and increase farmers’ income. The market that agriculture supplies for industry and the consumption of agriculturalists’ products by industry. Notably, farmers cannot increase their revenue or have any incentives or drive to produce more without the industry’s use of their products.


How far can industry help in the increase of agricultural productivity or income is a problem. In simple words, ‘productivity’ means actual physical production. ‘Income’ means gains out of the exchange of farm products for industrial goods.

The industry, however, cannot help in the improvement of agricultural products where the factors are beyond the control of human beings e.g. change of climate. Flood or conversion of the desert into cultivable land and so on.

But in most of the cases industry can help in the improvement of agricultural products and income. It provides better means of tilling the field, bringing more and more area under the plow, and absorb surplus manpower from the field. it also reduces the pressure of unnecessary manpower engaged on the field. it makes the agriculturists conscious of their duties and responsibilities.

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