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 .

‡ Second largest arable area in the world after US. ‡ Forms the basis of rural Economy which is about 72.INTRODUCTION ‡ Agriculture is the most important sector in Indian Economy. .2% of total population.

4 per cent in 2008-09 . ‡ Recorded growth rate of 3.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.

Bih Chh MP Jha UP Raj Oris AP All India Uttn Kar Mah Ass Guj Har TN WB Pun Ker 0% 20% 40% 60% 80% 100% 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 GDP Growth 12% 7% 2% 2004-05 -3% 2005-06 2006-07 2007-08 2008-09* 2009-10* -8% 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 .

‡ Inadequate infrastructure & services ‡ Govt.. ‡ Dependency on monsoons. Intervention in Land. ‡ Lack of Technological Know How ‡ Extensive use of old farming practices. Labor & Market.Continued. .

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. to uplift agricultural sector. ‡ Clear urgency for the Govt.

. Increasing Productivity. ‡ Women empowerment. Emphasis on sharing growth (equity).RECOMMENDATIONS ‡ ‡ ‡ ‡ Adoption of New Technologies. ‡ Maintaining agricultural sustainability. ‡ Focus on lagging regions. Maintaining food security.

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