Land is an important factor of production inspite of the factor that land is a passive factor of production, no production can start without it.
The importance of land becomes evident from the following facts :
(i) Agricultural Development : The agricultural development of a country largely depends upon the quantity and the quality of land. About 43 per cent of land area of India is plain and suitable for crop farming. Some parts of India have good climate, good rainfall and fertile lands and therefore then help in prosperous farming. The development of primary industries such as fishing, mining, forestry, etc., is determined by the quality of land found in the country. About 27 per cent of land area in India is mountainous which provides natural resources in form of forests and mineral resources.
(ii) Industrial Development : The development of industries is also dependent upon land, because the raw materials for these industries are ultimately obtained from land. What is more, the power (i.e., electricity, coal, etc.) to run such industries is also provided by land.
(iii) Development of the Means of Transport and Communication : Land facilitates the development of the means of transport and communication in country. Sea coast and rivers provide navigation facilities for transportation. However, the construction of roads and railway tracks turns out to be very costly and expensive in hilly regions.
(iv) Importance to Man : Much of our requirements of food, clothing, etc., are directly or indirectly met from land. Our food consists of rice, wheat, other cereals and pulses, fish, meat, eggs, milk, etc. all our food comes from plants and animals which nature supports. Not only food, even clothing comes from nature. Cotton cloth, woollen cloth and silk are products of plants and animals. Land is the main source of our agricultural activities. Residential houses are constructed on land. Not only this, houses are made of bricks, stone, wood and steel, all of which in their raw form come from nature.
