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Share of agriculture in GDP witnesses a drop of 5% in 8 years

10 Sep 2012 Evaluate

Share of agriculture in the gross domestic product (GDP) has declined by nearly 5% in the last 8 years. The percentage has been declining steadily with the passing of years. Agriculture & other corresponding sectors, which used to contribute 19% of GDP in 2004-05 has plunged to 14% in 2011-12.

The decline is as a result of comparatively higher growth in GDP of other sectors but, capital investment in the sector has shown improvement. The Gross Capital Formation (GCF) investment in agriculture sector (at 2004-05 prices) has augmented from Rs 69,148 crore in 2004-05 to Rs 1,30,907 crore in 2010-11.

The agriculture sector has shown signs of an average growth rate of 3.3% annually in the 11th Year Plan period ended March 31, 2012 as compared to 2.4% per annum during the 10th Year Plan. In UN's body, Food and Agriculture Organisation (FAO), India contributed 2.3% share in world's total land area and 17.5% of world's population. Food grain production has also made an increase from 217.28 million tonnes in 2006-07 to 257.44 million tonnes in 2011-12.

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