Importance of Agriculture in Indian Economy PDF

1. Importance of Agriculture in Indian Economy and its sectoral relationship Introduction ✰Share in Gross Domestic Product (GDP) has declined from over 50% at Independence to less than 15.87 % currently ✰India's agriculture sector contributes 49% of the total employment (2018-19). ✰Agriculture rema...

1. Importance of Agriculture in Indian Economy and its sectoral relationship Introduction ✰Share in Gross Domestic Product (GDP) has declined from over 50% at Independence to less than 15.87 % currently ✰India's agriculture sector contributes 49% of the total employment (2018-19). ✰Agriculture remains the predominant sector in terms of employment and livelihood with more than half of India's workforce engaged in it as the principal occupation. ✰Agriculture still contributes significantly to export earnings and is an important source of raw materials as well as of demand for many industries. Role of agriculture in Indian economy 1.1 Share in National Income: ✰The share of agriculture and allied sector activities (includes agriculture, forestry,fishing) in GDP factor cost declined to 55.3% in 1950-51 to 15.85 % in 2018-19. ✰The gross capital formation in agriculture and allied sector as a proportion of total GDP around 20%- 1.2 Contribution to employment ✰Agriculture sector provides live hood to nearly 54.6% of the total population. ✰The sector provides employment to around 52 % of country work force and is the single private sector occupation. 1.3 Important sources of Industrial Development ✰ Cotton, jute, textile industries, sugar, vanaspathi industries are directly depending on agriculture 1.4 Share in Export: ✰India foreign trade deeply associated with agricultural sector. ✰Agriculture and allied sector accounts for 12.86 % of total exports. Sectoral relationship > Sector wise GDP contribution: Service sector (55.3%) > Industry (29.6%) > Agriculture (15.8%) > Service sector: About 55% of the total size of the economy and GVA growth. > 54.6% of Indian population depends on agriculture > Contribution of Agriculture and allied sectors to GDP is- 15.87 % > Growth rate of Agriculture sector during 2018-19 is- 2.9% > Contribution of Livestock to National GDP is- 5.1% > Contribution of Livestock to Total Agricultural GDP- 27% > India's position in Livestock population- First > GDP contribution of horticulture in agriculture -38% > Cropping Intensity of India is-141% > India's share in world production of Fruits is- 12.2 % > India's share in world production of Vegetables- 10.7% > Minimum Support Price recommended by - Commission for Agricultural Cost and Prices (CACP) > MSP announced by-Government of india: based on Avg. Cost of Production 3. NITI Ayog: 2015 (policy think tank of GOI) ✦ Acronym for NITI Ayog- National Institution for Transforming India ✦ Policy making body of Govt. of India- NITI Ayog ✦NITI Ayog formed in the year- Jan. 1, 2015 ✦First CEO of NITI Ayog- Sindhu Sree Kullar ✦ Present CEO of NITI Ayog- Amitabh Kanth ✦ Governing council of NITI Ayog consists of- Chief ministers of all states ✦ Chairman of NITI Ayog- Prime Minister ✦ NITI Ayog vice chairman- Rajiv Kumar ✦ Full time members of NITI Ayog- Bibek Debroy and V.K.Saraswat ✦ Agricultural economist of NITI Ayog- Ramesh Chand ✦ NITI Aayog developed Agricultural Marketing and Farmer Friendly Reforms Index to comparing states on implementation of farm sector reforms " Ranks: Maharashtra-1st, Gujarat 2nd, Rajasthan 3rd 4. Agricultural Exports and Imports: ✦Share of Agriculture exports in the total exports of the country 12.86% (2017-18) ✦Share of Agriculture imports in the total imports of the country 5.07 % (2017-18) ✦India's largest exported agricultural commodity in terms of its value- Basmati Rice (Rs.32.804cr) ✦ Highest exported: Non basmati rice > basmati rice Oil meals > Molasses > fresh vegetables ✦Highest imported: Vegetable oils > Pulses > Sugar ✦ Share of India's Agriculture exports in the world exports - 2.2% ✦ Share of India's Agriculture Imports in the world Imports - 1.7% ✦ India Exports Principal Agricultural commodities to- USA ✦ India Imports Principal Agricultural Commodity (Edible oils) from - Indonesia ✦Leading exporter of agricultural products in the world: European Union > USA ✦Leading importer of agricultural products in the world: European Union ✦ India's position in global import of agricultural, fishery, and forestry products is- 11th ✦ ✦India's position in global export of agricultural, fishery, and forestry products is- 9th 2024/10/23 11:03