Agriculture has been the backbone of the Indian economy through its share in the Gross Domestic Product (GDP) has registered a declining trend from 1951 onwards, yet its share in providing employment and livelihood to the population continues to be as high as 63 percent in 2001. Let us learn in detail about the contribution of agriculture in GDP.

The declining contribution of agriculture in the GDP is a matter of serious concern because any decline and stagnation in agriculture will lead to a decline in other spheres of the economy having wider implications for society. Considering the importance of agriculture in India, the Government of India made concerted efforts to modernize agriculture.

The establishment of the Indian Council of Agricultural Research (ICAR), agricultural universities, veterinary services, and animal breeding centers, horticulture development, research and development in the field of meteorology and the weather forecast, etc. were given priority for improving Indian agriculture.

Apart from this, improving the rural infrastructure was also considered essential for the same. The GDP growth rate is increasing over the years, it is not generating sufficient employment opportunities in the country. The growth rate in agriculture is decelerating which is an alarming situation.

Today, Indian farmers are facing a big challenge from international competition and our government is going ahead with a reduction in the public investment in the agriculture sector particularly in irrigation, power, rural roads, market, and mechanization. Subsidy on fertilizers is decreased leading to an increase in the cost of production.

Moreover, reductions in import duties on agricultural products have proved detrimental to agriculture in the country. Farmers are withdrawing their investment from agriculture causing a downfall in employment in agriculture.

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