The Impact of Agricultural Subsidies on Industrial Sector Development in Developing Countries

This study explores the impact of agricultural subsidies on industrial sector development in developing countries. While subsidies support farmers, enhance food security, and stabilise markets, their effects on industrial growth are less understood. This paper examines subsidies’ direct and indirect effects on industrial development through a comparative analysis of India, Brazil, and Kenya. By investigating indicators such as GDP contribution, employment rates, and export performance, the study uses secondary data from government reports, international databases, and case studies to provide empirical evidence. The findings reveal that subsidies can promote and hinder industrial growth; they enhance rural incomes and demand for industrial goods but may also distort resource allocation and reduce competitiveness. The study concludes that balanced agricultural support is essential for sustainable development. Policy recommendations include aligning subsidies with broader economic goals, promoting agricultural innovation, and ensuring subsidies do not undermine industrial competitiveness. This research offers valuable insights for policymakers aiming to harmonise agricultural and industrial development.