SECTOR IN INDIA
Presented by:- Padma Pandey
MSc. Previous 2014
Agriculture continues to play a major role in Indian Economy
It is generally described as the backbone of Indian economy and also
plays a significant role in the growth of socio-economic sector in India.
70% of the population is still directly or indirectly dependent on
Green revolution transformed India from a food deficient stage to a
surplus food market
India is among the 15 leading exporters of agricultural products in the
world, country accounted for 1.7 percent of global agricultural trade in
On the eve of India's independence in 1947, Indian agriculture was characterized by feudal
land relations and primitive technology, and the resultant low productivity per hectare.
As a consequence, rural India presented a picture of mass poverty and widespread
unemployment or under-employment.
Therefore, the first task of the government in the immediate post-independence period was to
initiate a growth process in the modernization of agriculture, both in terms of technological and
BUDGET FY 14 ; AGRICULTRE REMAINS
In the Union Budget FY14, the Government of India allocated
USD145.8 billion for agriculture credit, an increase of USD26.04 billion
compared to FY13
Funds allotted to the Agriculture Ministry increased 22 per cent to
USD5.63 billion; of this, USD711.4 million is planned for farm research
In Bringing Green Revolution to Eastern India (BGREI), the
government allotted USD 208.3 million to improve agricultural
production in Eastern states
National Food Security Mission, a scheme to bridge yields gap of
major crops, has been provided USD468.7 million
ROLE OF AGRICULTURE IN INDIAN ECONOMY
1. Share in National income:- agriculture contributed two-thirds
of national income.
2. Largest employment providing sector:- In 1951, 69.5% of the
working population was engaged in agriculture.
• this percentage fell to 66.9% in 1991 and to 56.7% in 2011
and in 2004-05
3. Providing of food surplus to the expanding population:-
domestic demand for food grains was placed at 207 million
tones in 2004-05, about 234.4 million tones in 2011-2012 in
11th year plan. And this is expected to increase further to
280.6 million tones by 2020-21.
4. Contribution to capital formation:- unless the rate of capital
formation increases to a sufficiently high degree, economic
development cannot be aceived.
Providing of formation
• Since agriculture happens to be the largest industry in
developing countries like India, it can must play a important
role in pushing up the rate of capital formation.
5. Providing raw material to industries.
6. Market for industrial products:- increases rural purchasing
power is a valuable stimulus to industrial development
7. Importance in international trade:- the three agriculture
based exorts of India- cotton textiles, jute and tea–
accounted for more than 50% of export earning of the
RKVY (Rashtriya Krishi Vikas Yojana)
• Was launched in 2007-08 with a outlay of Rs 27447 cores In the XI
Five year Plan for incentivizing states to enhance public investment,
for taking up 5768 projects across various sectors
• (RKVY) was launched in the XIth Plan against a backdrop of faltering
agriculture growth in the previous decades
• It was designed as a State Plan Scheme with complete flexibility to
the States to choose projects specifically tailored to their conditions
for generating growth in agriculture and allied sectors.
• In the XII Plan, the entire RKVY budget is proposed to be divided in
three streams viz. Production Growth, Infrastructure & Assets, and
Special schemes of national importance in the ratio of 40:40:20.
RKVY strategic objectives
RKVY has two strategic objectives :-
• first, to encourage States to allocate more funds for agriculture
and allied sectors and
• second, to incentivize States to generate additional growth in
agriculture and allied sectors by better planning and
undertaking appropriate growth oriented projects.
• As a result of which, States' allocation to agriculture and allied
sectors rose from Rs.8770 crore in the base year of 2006-07,
to Rs.29413 crore in the year 2011-12
Various initiatives were taken to improve the agriculture sector
• Green Revolution (1968)
• Ever-Green Revolution (1996)
• Blue Revolution (water, fish)
• White Revolution (Milk)
• Yellow Revolution (flower, edible)
• ICT Revolution
Bringing Green Revolution in Eastern
•Scheme was launched in 2011, under
RKVY, to strategically increase in
productivity in Eastern states
•BGREI actively promoted various
technological interventions and
emphasized on collaborative work
among institutions, officials and
OBJECTIVES OF (BGREI) :-
• Yield maximization of rice and wheat per unit area by
• Water harvesting and conservation; and
• Water utilization (recycling of conserved water-surface
water as well as groundwater.
NATIONAL FOOD SECURITY MISSION
• National Food Security Mission
(NFSM) :-Is a crop Development
scheme of the Government of India .
• Launched in august 2007 with an
approved outlay of rs. 4,883 core for
period of 2007 to 2012.
• Aims at restoring soil health and
achieving additional production of
10,8 and 2 million tones of rice,
wheat and pulses, respectively by the
end of 2011-12.
• NFSM is presently under implementation in 482 Districts of 19
States of the country with a view to enhance ,the production of Rice,
Wheat and Pulses
• through area expansion and
•restoring soil fertility and
•creating employment opportunities; and
•enhancing farm level economy to restore confidence of farmers.
Strategies of NFSM
strategy of the mission is to promote and extend :-
• Improved technologies i.e., seed,
micronutrients, soil amendments, Integrated Pest
Management, Farm Machinery and
• Resource conservation technologies along with
capacity building of farmers with effective
• Better management in the high potential
districts in order to bridge the yield gaps
• During the 12th Plan, it is proposed to include
coarse cereals as well in the Mission.
• Emphasis would be on promotion of
technologies adopting cropping system approach
in identified clusters
KCC (Kisan Credit Card)
• To facilititate access to short term credit
• Scheme was introduced in in 1998-99.
• The scheme has gained popularity and
its implementation has been taken up by
27 Cooperative Banks ad 196 Regional
Rural Banks throughout the country.
• About 10.78 crore KCC’s had been
issued up to October 2011
• KCC has received wide acceptability
amongst bankers and farmers.
• Govt. of India, revised operational guidelines on KCC were issued by NABARD
to Cooperative Banks, RRBs and by RBI to Commercial Banks in the year 2012.
• Banks were advised to devise suitable strategies to implement the scheme in a
time bound manner.
Improvements in the guidelines over the earlier KCC scheme are as under:
• Paper card (pass book) to Plastic card - KCC in the form of ATM enabled Debit
• Wider delivery channels : Operations through Branch/Cheque facility/BCs/ATM
(debit card)/POS/Mobile handsets
• More clarity in assessing credit needs (inclusion of post harvest /
household/consumption needs up to 10% + maintenance expenses up to 20%)
• One time documentation at first availment and thereafter simple declaration
from second year
• Moving towards accessing online land record and Creation of charge.
INITIATIVES THAT WILL FURTHER PROP UP
FDI in multi-brand Retail
• The government has allowed up to 51 per cent FDI in multi-brand
• Foreign investors are likely to bring in efficiencies, they are likely to
invest in logistics such as warehouses and cold storages .
• Direct procurement from farmers will result in higher prices for the
farmer and lower ones for the consumer
National Food Security
•Under the proposed National Food Security Bill, government
guarantees beneficiaries a prescribed quantity of food grains at
•The government is likely to invest more on the storage
infrastructure, which will reduce wastage and thereby lead to lower