The Agriculture sector has experienced buoyant growth in the past two years, growing at 3.9 per cent in 2021-22 and 3.6 per cent in 2020-21, the Economic Survey presented in Parliament on Monday said.
The Survey said the agriculture sector, which accounts for 18.8 per cent of the Gross Value Added (GVA) of the country in 2021-22, showed resilience in the face of COVID-19 shock.
The Survey attributes this to "good monsoon, various Government measures to enhance credit availability, improve investments, create the market facility, promote infrastructure development and increased provision of quality inputs to the sector". It also observes that livestock and fisheries have experienced buoyant growth and had helped the sector perform well.
The share of the agriculture and allied sector in total Gross Value Added (GVA) of the economy has settled at around 18 per cent in the long term states the Survey. In the year 2021-22 it is 18.8 per cent and in the year 2020-21 it was 20.2 per cent. Another trend observed is, higher growth in allied sectors (Livestock, Forestry and Logging, Fishing and Aquaculture) compared to the crop sector. Recognising these allied sectors as engines of high growth the Committee on Doubling Farmers' Income (DFI 2018) had also recommended focused policy with a concomitant support system to boost agricultural incomes.
The Survey notes that there is a direct correlation between capital investments in agriculture and its growth rate. The Gross Capital Formation in the agricultural sector relative to the GVA in the sector is showing a fluctuating trend in sync with the variation in private sector investments, whereas the public sector investments have remained stable at 2-3 per cent over the years.
The Survey suggests "higher access to institutional credit to farmers and greater participation of the private corporate sector" may improve private sector investment in agriculture. Towards this end, the Survey recommends offering an appropriate policy framework to crowd-in corporate investments along with the increase in public investments along the entire agricultural value chain.
( With inputs from ANI )
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