Indian Agricultural sector

(Need for growth)

current affair presentation
By-Nitish Bhardwaj
 Indian Agriculture
• India is regarded as the 3rd largest country in the agricultural sector after
China and canada.

• Indian agriculture contributes almost 25% to the GDP after the

independence.

• It provide employment to almost 60% of the rural population.

• The agricultural sector of India has occupied almost 43 percent of India's

geographical area.
 Decline in GDP contribution
• Average Indian GDP –Trend Of Growth Rate
1960-1980 : 3.5%
1980-1990 : 5.4%
1990-2000 : 4.4%
2000-2009 : 6.4%
Contribution of Agriculture Sector in GDP
The contributions of agriculture sector in the Indian GDP for 1990-1991
are as follows:
Agriculture: - 32%
The contributions of agriculture sector in the Indian GDP for 2007 are as
follows:
Agriculture: - 20%
The contributions of agriculture sector in the Indian GDP for 2008 are as
follows:
Agriculture: - 19.5%
• The GDP of India was 9% in 2008 whereas it decreased to
6.5% in 2009.

• The decrease in the contribution of agriculture recorded

around 4.5%.As it contribute just 15% in 2009.
 Reasons
• More emphasize of government policies on industrial growth.

• The service sector is blooming and contributing almost 50% to the GDP.
Because of the growth of Indian IT and Banking services.

• Agricultural land is decreasing.

• Lack of agro-biotechnology in india.

 Bt Brinjal and Bt cotton
controversy
• Government of india introduced Bt brinjal and cotton on 9 th feb
2010.This breed of brinjal and cotton is a transgenic breed of crop
which is biotechnologically developed.This crop have inserted
Transgenic gene (CRY1) In the form of Bacterim Bacillus
Thuringiensis.This Bacterium make the crop resistance to pest.No
fertiliser needed for such type of crops.

• But these transgenic crops are opposed by the farmers because

of their lack of awareness towards biotechnology and they fear
that such type of crops may effect the health of cattle.

• Thus still no decision is made on releasing Bt brinjal and cotton.

 China way ahead of India in agriculture
sector!!!
• Poor agricultural yield of India compared with China is one of
the major points of concern for the country.
• India had a poor average yield of major cereals, pulses and
oilseeds.
• Lack of biotechnology implementation
• Excessive reliability on artificial fertilizers.
 Impact of Indian agriculture
• Agriculture accounts for 13% of the countries exports.

• 43 % of India's geographical area is used for agricultural activity.

• The size of the food grain industry is estimated to be USD 70 billion.

• The food processing industry is over USD 1 billion and is expected to

grow at the rate of 20% over the next few years
Need for Second Green Revolution:
• Indian agriculture is heavily dependent on monsoons.
• The structural weaknesses of the agriculture sector are reflected in the low
level of public investment, exhaustion of the yield potential of new high
yielding varieties of wheat and rice, unbalanced fertilizer use, low seeds
replacement rate, an inadequate incentive system and post harvest value
addition.
• The lack of necessary infrastructure in terms of food processing, food grain
storage, cold storage, refrigerated transport etc has lead the industry to be
lose 20% of its produce.
• The government also needs to take initiative to provide subsidies to the
small farmers so that this sector can grow much faster.
• The subsidies in India are too low as compared to Canada, Japan, and USA
etc.
• Need to take annual growth to a higher trajectory of 4 per cent.
Steps to achieve this objective:

• Doubling the rate of growth of irrigated area;

• Reclaiming degraded land and focusing on soil quality;
• Improving water management, rain water harvesting and watershed
development;
• Cultivation of fruits, vegetables, flowers, herbs and spices, medicinal
plants, bamboo.
• Providing easy loans and insurances to the farmers.
• Creating awareness of farmers toward biotechnology.
• Emphasize on R&D investments in Agriculture.
 Budget 2010 for the
agriculture
• More help to Food Processing Sector
• Rs 400 crore to be allocated for Green Revolution in Eastern India
• Rs 300 crore for Rashtriya Krishi Vikash Yojna
• Extend Loan Repayment for drohught-hit Farmers
• Farmers, who repay loan on time, will get a waiver of 2%
• Farmers to get Loans at 5%
• To extend farm loan repayment by 6 months
• Agriculture Loan for Farmers increased to Rs 3,75,000 crore
• New Food Policy from April 1, 2010
• Rs 300 crore to be allocated for Pulse Production
 
 Relaxation provided

• Benefit of 5% concessional customs tariffs on particular

agricultural equipment not created in India.
• Tax exemption from service tariff on the conservation and
warehousing of farm produce.
• Service tax exemption on the testing and documentation of
agricultural seeds.
• Service tax exemption on the transportation of cereals and
pulses by rail and road.
 Other Steps taken by Government:

• Foreign equity participation of upto 51% has been allowed in Cold Chain
Projects.
• Agricultural sectors like horticulture, floriculture, development of seeds,
animal husbandry, pisciculture, aqua culture, cultivation of vegetables,
mushroom under cultivated conditions and services are open to 100 % foreign
direct investment (FDI).
• Government of India is utilizing the advantages of biotechnology for
accelerating the growth of agricultural sector. According to a report by
Rabobank, the Indian agri-biotech sector has been growing at 30 % growth
rate in the last five years and is likely to maintain this growth well into the
future.
• Also some of the state government as like Haryana government is providing
full relaxation on the debt for the farmers.also investing in establishing
vetenarian university in hissar and investing hugely in irrigation facilities.
Emphasize on agro-export for agricultural
growth
• With a view to promoting agricultural exports from the country and
remunerative returns to the farming community in a sustained manner, the
concept of the agro export zones (AEZ) has been floated.
• These zones have been set up for end to end development for export of
specific products from a geographically contiguous area.
• AEZ are to be identified by the State Government, who would evolve a
comprehensive package of services provided by all State Government
agencies, State agriculture universities and all institutions and agencies of
the Union Government for intensive delivery in these zones.
• Corporate sector with proven credentials would be encouraged to sponsor
new agri export zone or take over already notified agri export zone or part
of such zones for boosting agri exports from the zones.
Thank

you
 REFFERENCES
• http://business.mapsofindia.com/india-
gdp/sectorwise/
• http://www.tradechakra.com/indian-
economy/gdp.html
• http://www.indexmundi.com/india/gdp_composition_
by_sector.html
• http://ready2beat.com/food-drink/bt-brinjal-
controversy-india-says-no-bt-brinjal-now
• http://www.ndtv.com/news/videos/video_player.php?
id=1204996
• http://www.breakingnewsonline.net/business/989-
union-budget-2010-highlights-focus-on-agriculture-
infra-and-growth.html