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Capital investment in agriculture up by 87% in 2010-11 fiscal

11 Apr 2012 Evaluate

Capital investment in agriculture and allied sectors in the country rose by a whopping 87% in FY’11 as compared to FY’05 as per the annual report of Department of Agriculture and Cooperation. As per the annual report, for the year 2011-12, Gross Capital Formation (GCF) in agriculture and allied sectors in 2010-11 was Rs 142,254 crore, it was Rs 76,096 crore in 2004-05.

According to the report, the increased investment has been possible because of the initiatives taken by the government to make agriculture a sustainable vocation. Public sector has invested in irrigation works, command area development, land reclamation, afforestation and development of state farms. Whereas participation from the private sector came in the areas of construction activities including improvement/reclamation of land, construction of non-residential buildings, farm houses, wells and other irrigation works.

The capital investment is measured in terms of GCF relative to the country's Gross Domestic Product (GDP). Capital investment in agriculture and allied sectors has witnessed a steady increasing trend in recent years. It has risen from 13.5% of GDP in 2004-05 to 20.1% in 2010-11.

As one of the world’s largest agrarian economies, the agriculture sector (including allied activities) in India accounted for 14.2% of the gross domestic product (GDP), at constant 2004-05 prices during 2010-11, as per Central Statistics Office (CSO) of India.

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