Source of foreign exchange
•Agriculture is an important source of earning foreign exchange, which is needed for importing capital goods for the rapidly expanding industrial sector.
•Agriculture makes its contribution to the net foreign exchange earning;
•through the displacement of current and potential imports
•through expanded exports
•In the year 2005–06, agricultural exports was 11% of the total value of exports from India in that year. Agricultural imports in the same year 3.3% of India’s total imports.