Agriculture in India has a significant history. Today, India ranks second worldwide in farm output. The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

1. Managerial Economics
Agricultural sector in Indian economy
Prepared by Bhooshan Kanani

2. AGENDA
1. Indian Economy
2. Agriculture in India
3. Development in Agricultural sector
4. Indian Agriculture SWOT analysis
5. Conclusion
6. References

3. Indian Economy
The economy of India is the tenth-largest in the world by nominal GDP. India's GDP grew by
9.3% in 2010–11; thus, the growth rate has nearly halved in just three years. GDP growth rose
marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous
quarter. The government has forecast a growth rate of 6.1%-6.7% for the year 2013–14, whilst
the RBI expects the same to be at 5.7%.
The economic growth is the increase in the amount of the goods and services produced by an
economy over time.
Indian economy is mainly divided into three sectors:
1. Agriculture
2. Manufacturing
3. Service
The various sectors share their population as below:
Sectors In the year 1980 In year 2010
Agricultural 81 % 60%
Manufacturing 7 % 19 %
Service 12 % 21 %
Agriculture in India has a significant history. Today, India ranks second worldwide in farm
output. The economic contribution of agriculture to India's GDP is steadily declining with the
country's broad-based economic growth. Still, agriculture is demographically the broadest
economic sector and plays a significant role in the overall socio-economic fabric of India.
1980
Agriculture Manufacturing Service
2010
Agriculture Manufacturing Service

4. Agriculture in India
Agriculture sector is changing the socio-economic environments of the population due to
liberalization and globalization. About 75% people are living in rural areas and are still
dependent on Agriculture. About 43% of India’s geographical area is used for agricultural
activity. Agriculture continues to play a major role in Indian Economy.
Agriculture and Forestry, Logging, Fishing contributes about 17% to GDP. The agricultural sector
employs 60% of India’s population. It accounts for 8.56% of India’s exports.
About 43% of India's geographical area is used for agricultural activity where the monsoons play
a critical role in agriculture.
Production in India
• Largest producer of
– Tea-India accounts of 14% of world trade in tea
– Jute
– Jute fiber
– Highest in terms of total milk production in the world.
• Third largest producer of cereals in the world :
– Wheat, rice and pulses.
• Third largest producer of tobacco.
• Accounts for 10% of the world fruit production
Agriculture movements:
1. Green revolution
 After independence, govt. took steps to increase the food production
 Yields per unit area of all crops grew since 1950
 In 1970s saw a huge increase in India’s wheat production
 Reasons were improvement in irrigation, technology, application of modern
agricultural practices and provision of agricultural credit and subsidies
 M.S. Swami Nathan is considered as the architect of the Green Revolution
2. Operation Flood/ White revolution
 It was the name of a rural development program
 Started by National Dairy Development Board (NDDB) in 1970
 Objective was creating a nationwide milk grid
 Movement followed the Green Revolution and alleviating poverty and famine levels
 India became the largest producer of milk and milk products
 Hence, also known as White Revolution of India

5. Development in Agricultural sector
Agricultural development – Post independence
Phase I: 1947-64 (Development of infrastructure for scientific agriculture)
1. Establishment of fertilizer and pesticide factories
2. Establishment agricultural universities and agricultural Research Institutions (Example: The
Central Rice Research Institute, Cuttack, and The Central Potato Research Institute, Shimla).
3. Imports of foods and Grains
Phase II: 1965-1985(Maximizing the benefits of irrigation and infrastructure)
1. Reorganization and strengthening of agricultural research, education and extension
2. Provide farmers assured marketing opportunities
3. Establishment of The National Bank for Agriculture and Rural Development (NABARD)
4. Introduction of Sixth Five Year Plan period (1980-85)
5. A phenomenon christened in 1968 as the Green Revolution.
Phase III: 1985-2000 (concurrent attention to conservation, cultivation, consumption, and
commerce).
1. Introduction of organizational innovations like Technology Missions to rapid rise in
production of pulses, oil seeds, vegetables, fruits, and milk
2. Greater attention paid to Rain-fed areas and wastelands
3. Decline in public investment in irrigation and infrastructure
Phase IV: 2001 Onwards (Period of technology extension and production fatigues)
 40 per cent of the farmer’s want to quit farming for others alternative option
 The agricultural decline is taking place
 Unfair International trade increases the prices of food grains
 Changes in rainfall, temperature, and the sea level due to global warming affects agriculture

6. Three goal of Agricultural development
1. Achieve growth in agriculture and raise incomes. Increasing productivity (land, labor),
diversification to high value agriculture and rural non-farm by maintaining food security.
2. Second goal is sharing growth (equity): focus on small and marginal farmers, lagging regions,
women etc. On lagging regions, focus on Eastern India and other rainfed areas.
3. Third is to maintain sustainability of agriculture by focusing on environmental concerns.
Agricultural growth from 1990-91 to 2010-11
Crops Average YIELD, 1990-1991 Average YIELD, 2010–2011
kilogram per hectare kilogram per hectare
Rice 1740 2240
Wheat 2281 2938
Pulses 578 689
Oilseeds 771 1325
Sugarcane 65395 68596
Tea 1652 1669
Cotton 225 510
The average yield for crops have increased in last two decades. Irrigation of water has played a
major role in increasing the productivity in Agricultural sector. The literacy of farmers have
improved a lot to make sure the growth is rising continuously. The growth opportunities and
usage of new improved systems and lead to stupendous development.
Despite the growth, the value added (%of GDP) from agriculture has decreased from 30% in
1990 to 17% in 2011.

7. Indian agriculture SWOT Analysis
STRENGTHS
 Rich Bio Diversity: Rich Bio Diversity- 46,000 plant species and 86,000 species of animals
recorded
 Arable Land: Arable Land- 428 million acres cultivable land
 Climate: Favorable all year around (Unlike USA, Europe and China where farming is possible
only 5 to 6 months a year)
OPPORTUNITES
 Exports: Developing of Free trade agreements between India and other countries
 Agro-based Industry: Machineries for Agriculture, Pesticides and Insecticides manufacturing
Industries
 Horticulture: Research and development for hybrid plants with more productivity and
nutritional elements
WEAKNESS
 Fragmented Lands: Division of lands through generations lowers profit margins for farmers
 Illiteracy: Impotent seeds, approach to moneylenders than to banks for loans
 Lack of Technological Inputs: Bullock farming still prevailing
 Poor Infrastructure: Unavailability of modern facilities to some farmers
THREATS
 Unsustainable resource use: Lands gifted with fertility not utilized amply due to Zamindari
system.
 Unsustainable regional development: Regions close to developed cities are only focused for
development.
A details study with the SWOT analysis will help to increase the GDP growth through
agricultural sector. The agricultural sector being the major contributor to Indian economy
should be checked and make sure add the value to overall growth of country’s income.

8. Conclusion
Agricultural sector plays a very important role in the Indian economy. The economic
contribution of agriculture to India's GDP is steadily declining with the country's broad-based
economic growth. Still, agriculture is demographically the broadest economic sector and plays a
significant role in the overall socio-economic fabric of India.
The agricultural sector has to look forward to check the great opportunities and try to increase
the GDP of India.
The drop in Agriculture should be first sustained and stabilized and then look forward to
increase it ahead. The literacy among the farmers has to be increased and new methods should
be implemented.
References
http://www.tradingeconomics.com/india/agriculture-value-added-percent-of-gdp-wb-data.
html
http://en.wikipedia.org/wiki/Economy_of_India/Agriculture
www.ibef.org
http://www.iari.res.in/objectives.php