What is the difference between backward linkage and forward linkage?
Hey Saumya,
Dependency of Agriculture over Industry for tools, sale of produce to traders is known as 'Forward Linkage'.
Whereas
Dependency of Industry over Agriculture for food, sale of produce in market is known as 'Backward Linkage'.
This develops an inter-dependency of these sectors. That is to say, if agriculture sector prospers, the industrial sector will inturn boom. Similarly, if agriculture sector is unable to get the required tools from industry for cultivation and harvesting of their crops, the industrial sector will suffer.
These backward and forward linkages of the economy improves the productivity and production of the agriculture. Similarly, development of industries encourages the development of infrastructure facilities such as transportation, communication, banking, health, education, etc.
Hope this answers your query.
Keep posting for further doubts!!
Dependency of Agriculture over Industry for tools, sale of produce to traders is known as 'Forward Linkage'.
Whereas
Dependency of Industry over Agriculture for food, sale of produce in market is known as 'Backward Linkage'.
This develops an inter-dependency of these sectors. That is to say, if agriculture sector prospers, the industrial sector will inturn boom. Similarly, if agriculture sector is unable to get the required tools from industry for cultivation and harvesting of their crops, the industrial sector will suffer.
These backward and forward linkages of the economy improves the productivity and production of the agriculture. Similarly, development of industries encourages the development of infrastructure facilities such as transportation, communication, banking, health, education, etc.
Hope this answers your query.
Keep posting for further doubts!!