AGRICULTURAL SHARE IN THE GROSS DOMESTIC PRODUCT(GDP)
Agriculture has been the backbone of the Indian economy through its share in the Gross Domestic Product (GDP) has registered a declining trend from 1951 onwards; in 2010-11 about 52 percent of the total work the force was employed by the farm sector which makes more than half of the Indian Population dependent on agriculture for sustenance.
The declining share of agriculture in the GDP is a matter of serious concern because any decline and stagnation in agriculture will lead to a decline in other spheres of the economy having wider implications for society. Considering the importance of agriculture in India, the Government of India made concerted efforts to modernise agriculture. Establishment of the Indian Council of Agricultural Research (ICAR), agricultural universities, veterinary services and animal breeding centres, horticulture development, research and development in the field of meteorology and weather forecast, etc. were given priority for improving Indian agriculture. Apart from this, improving rural infrastructure was also considered essential for the same.
From Table 4.1, it is clear that though the GDP growth rate is increasing over the years, it is not generating sufficient employment opportunities in the country. The growth rate in agriculture has been decelerating which is an alarming situation. Today, Indian farmers are facing a big challenge from international competition and a reduction in public investment in the agriculture sector. Subsidy on fertilizers is decreased leading to an increase in the cost of production. Moreover, a reduction in import duties on agricultural products have proved detrimental to agriculture in the country. Farmers are withdrawing their investment from agriculture causing a downfall in employment in agriculture.
|
Sector |
2013–14 |
2014–-15 |
2015–16 |
|
Agriculture |
4.2 |
-0.2 |
1.1 |
|
Industry |
5.0 |
5.9 |
7.3 |
|
Services |
7.8 |
10.3 |
9.2 |
|
GDP |
6.6 |
7.2 |
7.6 |
Table 4.1 :India: Growth Rate of GDP and Major Sectors (in %)
Activity:
1. Find out why an Indian farmer does not want his son to become a farmer.
2. When farmers have been facing so many problems and land under agriculture is decreasing can we think of alternative employment opportunities in the agriculture sector?
3. Why are farmers committing suicides in several states of the country?
Source: This topic is taken from NCERT TEXTBOOK