Why has the agriculture sector in India got a major set hack in sprite of increase in GDP growth rate ? Analyse the reasons.
Agriculture has been the backbone of the Indian economy though its share in the Gross Domestic Product (GDP) has registered a declining trend from 1951 onwards. Its share in providing employment and livelihood to the population continues to be as high as 63 per cent in 2001. Secondly the growth rate in agriculture is decelerating which is an alarming situation. The reasons for this state of affairs are as mentioned below : Indian farmers are facing a big challenge from international competition. The government is reducing public investment in agriculture sector particularly in irrigation, power, rural roads, market and mechanisation. Subsidy on fertilisers is decreased leading to increase in the cost of production. Reduction in import duties on agricultural products have proved harmful to agriculture. Farmers are withdrawing their investment from agriculture causing a downfall in the employment in agriculture.
