Profile of Indian Economy
Agriculture is a very dominant sector of the Indian economyand accounts for 22 percent (as on September 2005) of GDP. Agriculture derives its importancefrom the fact that it has vital supply and demand links with the manufacturing sector. During thepast five years agriculture sector has witnessed spectacular advances in the production andproductivity of food grains, oilseeds, commercial crops, fruits, vegetables, food grains, poultryand dairy. India has emerged as the second largest producer of fruits and vegetables in theworld in addition to being the largest overseas exporter of cashews and spices. Further, India isthe highest producer of milk in the world.Prospects of agricultural production in 2005-2006 are considered to be bright with near normalrainfall. The emerging areas in agriculture like horticulture, floriculture, organic farming, geneticand engineering, food processing, branding and packaging and future trading have highpotential of growth.Horticulture, floriculture, fishery, poultry and animal husbandry, which account for 30 percent of production agriculture and allied sectors, are expected to achieve a growth rate of 6 percent.Further, production of commercial crops like jute, tea, coffee, oilseeds and sugarcane are alsoexpected to increase. Consequently the overall value added in the primary sector is expected toincrease by 3 percent in 2005-2006.On the research front, the National Agriculture Research system has taken a number of newinitiatives to face the challenges of agriculture sector. The National Agricultural Innovationproject launched in association with the World Bank assistance with an envisaged investment of 1150 crores aims at increasing farmers income, employment, livelihood security. An Indo -USknowledge initiative in agriculture has been launched in agriculture to reorient the currentresearch system and bring about a second green revolution in India.Agriculture has been the centre stage for India's discussion in the WTO negotiations. In therecent WTO talks, India has shown a tough stand on agriculture and has demanded a levelplaying field.
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