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Farm sector to add 21% to GDP

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March 04, 2005 15:45 IST

The contribution of agriculture, including allied sectors, towards the gross domestic product has been estimated at 20.53 per cent in 2004-05, Rajya Sabha was informed on Friday.

The annual agriculture growth in 2004-05, the third year of the Tenth Plan, is estimated at a 1.1 per cent, minister of state for Agriculture Kanti Lal Bhuria said.

The modest 1.1 per cent annual growth reflects the impact of deficient rainfall from the southwest monsoon, he added. The growth rate of GDP in farm sector, including allied sectors, was set at four per cent during 10th Five Year Plan.

He said the 10th Plan document (Volume I) has indicated reduction in the share of agriculture in GDP from 24.7 per cent in 2001-02 to 20.5 per cent in 2006-07.

In 2002-03, the first year of the Plan, the growth rate in farm sector, including allied sectors of forestry and logging and fishing, suffered from a sharp decline in growth by 7 per cent on account of a severe drought that affected several states.

In 2003-04, the second year of the Plan, agriculture and allied sectors grew at a high rate of 9.6 per cent owing to favourable rainfall.

Deficient rain coupled with high base in 2003-04 has contributed to modest growth of GDP in 2004-05. This, in turn, has contributed to the relative decline in the contribution of agriculture to GDP in the country, Bhuria said. 

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