• Following are the major roles and importance of agriculture in Nepalese economy:

1. Major Source of National Income: Agriculture shares 23.13% of the Gross Domestic Product (GDP) in Nepal followed by industrial and tertiary sectors with 11.8%. (2020 AD).
2. Major Source of Livelihood:
3. Major Source of Employment: According to an estimate 64.54 % of the Nepalese people are employed in agriculture considering it as major occupation (ILO, 2020).
4. Major source of Row Materials for Agro-based Industries: Agriculture is the major source of raw materials for different agro-based industries such as textile, sugar, cigarette, beer, jam/jelly etc.
5. Major source of Export Earning: About 36% of foreign export earning comes from agriculture. However, due to the substantial progress in other sectors its share on foreign export earning has been decreasing over time.

Table: proportion of Export Earning through Agriculture in Different plan periods 

6. Source of Food: Agriculture provides food security and reduces nutritional deficiency. This is the major source of meeting household calorie requirements.
7. Stimulate the process of Export: It helps to reduce imports rather stimulates the process of export. Eventually, it helps to trade balance. So far, Nepal has been facing problems with negative trade balances.
8. Provides Labor to Industrial Sector: Since agricultural is seasonal in nature, which cannot absorb available labor force for a whole year. This has resulted surplus labor force, which is potential source of labor for the industrial and service sectors.
9. Agriculture Stimulates Industrial Expansion: It stimulates industrial expansion through providing row materials, generating capital for industrial development, demanding agricultural inputs, consuming industrial goods, and directing capital flow form agriculture sector to industrial sectors.
10. Being Foundation for Tertiary Sector (Trade and Commerce): Increased in agricultural production helps to grow marketing sector and in turn results in strengthening trade and commerce.
11. Major Source of Government Revenue: Nepalese government generates substantial amount of revenue through land tax, export and import tariff, VAT, etc.
12. Accelerator of Economic Development: Agriculture is known as engine or vehicle of development, increased in agricultural production and productivity leads to more saving and investment, which in turn results, into economic development.
13. Agriculture as the accelerator of economic development