| | DECEMBER 202019Consultants ReviewAgriculture under Indian EconomyThe Economy of India is the 6th largest in the world measured by nominal GDP and the third largest by purchasing power parity (PPP) after USA and China. The long term growth prospects of Indian Economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates and increasing integration into global economy. India has classified and tracked its economy and GDP as three sectors -- agriculture, industry and services. India has one of the fastest growing service sectors in the world with annual growth rate of above 9 percent since 2001, which contributed to 57 percent of GDP in 2012-13. The Industry sector contributed 26 percent of GDP and agriculture sector contributed 17 percent. Agriculture sector's contribution further declined to 15 percent in the year 2016. Out of the total population of 1.3 billion, close to 60 percent is dependent on agriculture for their livelihood. 60 percent of the country's population contributes just 15 percent to the nation's GDP which is clear imbalance. The Indian rural population is excessively dependent on agriculture for its livelihood. This results in under employment and low per capita returns. Alternate employment opportunities should be created in rural areas without causing migration to cities. More skill development programs should be started to move a section of rural population towards non-farm activities and reduce overcrowding of agriculture sector.India's food grain production which was abundant after the implementation of Green Revolution has started slowing down now. All the fundamentals of agricultural production need to be reviewed with a new perspective to arrest the slowing down. International comparisons reveal the average yield in India is only 30 to 50 percent of the highest average yield in the world. There is a lack of availability of sufficient quantity of high yielding seeds, shortage of irrigation water, absence of effective local R&D to improve yields, manage soil fertility and guide farmers in proper crop pest management.INDIAN AGRICULTURE: FUNDAMENTALS AND PERSPECTIVESCXO INSIGHTSWith over 50 years of work experience, Dorairaj has been involved in the agricultural field since 1968By Dorairaj. K, Director, International Competence Centre for Organic Agriculture (ICCOA)
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