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Growth Performance of Agriculture Sector

Employment News

  • 14 June, 2014


Agriculture, as a sector, has been playing a decisive role in shaping the overall growth trajectories of the Indian economy since Independence. As is well-known, in the overall Gross Domestic Product (GDP) of the country, the contribution of the primary sector (which comprises agriculture, forestry and fishing, & mining and quarrying) has come down substantially over the years, and, it accounts for 13.7 percent in 2012- 13. During 1950-51, the primary sector was contributing 51.9 percent of the country's GDP (at factor cost and at 2004-05 constant prices), which declined to 29.5 percent by 1990-91 and has shrunk further to 13.7 percent by 2012-13. Further, the share of 'agriculture' alone was recorded at a low of 11.6 percent in 2012-13, from a much higher share of 41.8 of the GDP percent during 1950-51. Much of this decline in percentage share of agriculture sector in the overall GDP of the economy seems to have been due to the increasing contributions of other sectors, viz. industry and services sectors, during the said period. Such a trajectory of economic transformation, as witnessed in India, has been commonly observed across the world. However, in spite of this decline in its share in the country's GDP, half of India's population is still dependent on agriculture as the major source of their livelihood. Moreover, as a source of raw materials for a number of sectors and its share in the country's total exports, the linkages of agriculture with overall economic growth and well-being are well established.

Growth Performance of Agriculture Sector