When agricultural development is initiated, it results in increasing the productivity and efficiency. Such that when agricultural surplus is produced there is an increase in contribution of agricultural-sector in income distribution. As the income of farmer's increases the government revenue also increases, this increases in farmer's income also leads to saving which can be increased more than before, these agricultural saving create demand in industrial market. So that industrial sector also increase its production and begin to develop.
As the productivity in import of agricultural products increase in agricultural sector there is an increase in export products by this foreign income can be earned, in this manner when production of food crop, increase in agricultural sector, there is a reduction in import for food products. This will save foreign reserves. This saving can be used to import heavy machinery for industrial development.