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The contribution of agriculture to India’s Gross Domestic Product (GDP) has been declining over the past few decades. Here’s a breakdown:
Current Contribution: As of 2022-23, the share of agriculture and allied sectors (including forestry, fishing, and livestock) in India’s GDP is estimated to be around 15% to 18.3%.
Historical Significance: At the time of India’s independence, agriculture contributed to more than 50% of the GDP. This highlights the significant shift in the Indian economy over time.
Reasons for Decline:
Growth of Service Sector: The service sector, encompassing industries like information technology, finance, and tourism, has grown rapidly in India. This has overshadowed the contribution of agriculture to the overall GDP.
Industrial Development: The industrial sector has also seen significant growth, further reducing the relative share of agriculture.
Stagnant Productivity: Agricultural productivity in India has not kept pace with the growth in other sectors. This is due to factors like limited irrigation facilities, lack of access to modern technology, and dependence on rainfall.
Despite the decline in its share of GDP, agriculture remains a crucial sector for India:
Employment: It employs a significant portion of the workforce, approximately 58% according to the 2011 census.
Food Security: Agriculture ensures food security for the nation’s large population.
Livelihoods: A large portion of the rural population depends on agriculture for their livelihood.