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.
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