ECONOMIC ENVIRONMENT & POLICY

SECTORAL SHARE OF AGRICULTURE IN INDIA’S GDP

PRESENTED BY:

• Priti Priya• Rajendra Gogineni• Ravindra Singh Chauhan• Sahiba Juneja• Yash Agrawal

CONTENTS

• INTRODUCTION• ANALYSIS• REASONS• IMLPICATIONS• CONCLUSION• RECOMMENDATIONS

INTRODUCTION

• Agriculture is the most important sector in Indian Economy.

• Second largest arable area in the world after US.

• Forms the basis of rural Economy which is about 72.2% of total population.

Importance of Agriculture:

• Around 60 % of population is dependent upon agriculture.

• Contributes about 20% to GDP• Providing livelihood to around 600

Million people in India.• Recorded growth rate of 3.4 per

cent in 2008-09

0% 20% 40% 60% 80% 100%

KerPunWBTN

HarGuj

AssMah

KarUttn

All India

APOrisRajUP

JhaMP

ChhBih

Labor Employed in Agriculture, %

Sectoral share of Agriculture in India’s GDP• Contributes about 20% to GDP• Agriculture Growth Rate in India GDP

had been growing earlier but it is declining constantly in the last few years.

• Plays a very important role in India’s GDP

• But it is not very effective thus hampers overall growth of economy.

ANALYSIS

Comparison of various sectors in contribution to the GDP

2004-05 2005-06 2006-07 2007-08 2008-09* 2009-10*

-8%

-3%

2%

7%

12%

GDP Growth

GDP Agriculture and allied activities Industry Services

Average Annual Growth Rate of various sectors

Reasons for decline in growth of Agriculture Sector• Illiteracy• Corruption• Insufficient Finance• Inadequate marketing strategies• Litigations• Fragmented Holdings• Natural Resources Degradation

Continued..

• Lack of Technological Know – How• Extensive use of old farming

practices.• Dependency on monsoons.• Inadequate infrastructure &

services• Govt. Intervention in Land, Labor

& Market.

IMPLICATIONS

• Widening Rural –Urban Income gaps.

• Increased number of Farmer’s suicides.

• The Crop yields are low• Declination of agro-investments• Land reforms were failed

Continued..

• Exploitation of Tenancy• Increasing Rural population• Unbalanced Agro-Development• Farmers want to adopt

alternatives other than farming• Increase in the prices of food

grains

CONCLUSION:

• Agriculture has not been able to show high growth rate and rarely its growth has been more than 4%.

• Dampened overall growth of India.• Clear urgency for the Govt. to

uplift agricultural sector.

RECOMMENDATIONS

• Adoption of New Technologies.• Increasing Productivity.• Maintaining food security.• Emphasis on sharing growth

(equity).• Focus on lagging regions.• Women empowerment.• Maintaining agricultural

sustainability.