Abstract

After independence India was facing the problem of food deficit i.e., mismatch of demand and supply of food grains. In order to sort out the problem intensive cultivation was adopted. It led to increase in demand of goods produced by industries (fertiliser, HYV seeds, insecticides etc.) on one hand and on the other increased cost of production for the farmers. Therefore, this paper aims at studying terms of trade between Indian agriculture and industry. The study is based on secondary source of information. In order to understand the relationship between use of inputs and its outcome various statistical tools like percentage and regression is used. Present paper is an attempt to study the impact of use of industrial goods on Indian agriculture. There are many industrial factors effecting agriculture i.e. fertilisers, insecticides, seeds machines and irrigation on agricultural sector. Due to paucity of time and money only fertilisers, insecticides and seeds were used for analysis. Present study aims at studying the role and effect of industrial input in agrarian development of India. The study found out that negative terms of trade between agriculture and industry due to more purchase of industrial inputs by the agricultural sector.