Lok Sabha Question No. 3358 (UNSTARRED), answered on 2016-12-06
Subject: Contribution of Farm Sector in GDP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PARBHUBHAI NAGARBHAI VASAVA, KRISTAPPA NIMMALA, KRISHNAN NARAYANASAMY RAMACHANDRAN, B. S. YEDDYURAPPA, MALLIKARJUN  KHARGE, M. I. SHANAVAS, SHARAD TRIPATHI, DODDAALAHALLI KEMPEGOWDA SURESH, KUNWAR PUSHPENDRA SINGH CHANDEL, RAMESH BIDHURI, SAKSHI SWAMI MAHARAJ

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.3358

TO BE ANSWERED ON THE 6 TH   DECEMBER, 2016

## CONTRIBUTION OF FARM SECTOR IN GDP

3358.       SHRI PARBHUBHAI NAGARBHAI VASAVA:

SHRI NIMMALA KRISTAPPA:

SHRI K.N. RAMACHANDRAN:

SHRI B.S. YEDIYURAPPA:

SHRI MALLIKARJUN KHARGE:

SHRI M.I. SHANAVAS:

SHRI SHARAD TRIPATHI:

SHRI D.K. SURESH:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI RAMESH BIDHURI:

DR. SWAMI SAKSHIJI MAHARAJ:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether there has been an adverse impact of global economic recession on the growth of  agriculture sector in the country and if so, the details thereof along with the contribution of farm sector to the Gross Domestic Production (GDP) and its growth rate during the last three years and the current year;
- (b) whether  public,  private  and  Foreign  Direct  Investments  (FDI)  are  allowed  in  the agriculture and allied sectors and if so, whether FDI flow into agriculture and allied sectors is very low and if so, the reasons therefor and the measures taken to attract more FDI and private investment to ensure speedy development of these sectors;
- (c) whether  the  Government  has  launched  'Per  Drop  More  Crop'  Scheme  to  increase agriculture  growth  rate  at  par  with  international  standards  and  if  so,  the  details  and  the achievements thereof;
- (d) whether the Government  proposes  to  create employment  opportunities for  new generation in the agriculture sector in the country including Kerala and if so, the details thereof along with the share of employment in agriculture sector in comparison to that of industrial and service sectors in the country; and
- (e) whether  the  Government  has  recently  held  any  discussion  with  stakeholders  including farmers and entrepreneurs engaged in the agro industries to improve agricultural growth rate in the country and if so, the details thereof and the response of the Government thereto?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  S.S. AHLUWALIA)

- (a): There has not been any adverse impact of global economic recession on the growth of agriculture sector in the country.

As  per  the  latest  estimates  released  by  Central  Statistics  Office  (CSO),  the  details  of contribution of Gross Value Added (GVA) of agriculture & allied sector to total economy in the country and its growth rate during the last three years and the current year at 2011-12 basic prices are given as below:

(At 2011-12 prices)

| Year    |   Contribution of GVA of Agriculture & Allied Sector in Total Economy (%) |   Growth rate in GVA of Agriculture & Allied Sector (%) |
|---------|---------------------------------------------------------------------------|---------------------------------------------------------|
| 2012-13 |                                                                      17.8 |                                                     1.5 |
| 2013-14 |                                                                      17.5 |                                                     4.2 |
| 2014-15 |                                                                      16.3 |                                                    -0.2 |
| 2015-16 |                                                                      15.4 |                                                     1.2 |

Source: Central Statistics Office (CSO)

The  growth  of  the  agriculture  sector  depends  on  several  factors  including  vagaries  of nature,  temperature, weather and rainfall scenario,  availability of water in reservoirs, etc.

(b): Public and private investments as well as Foreign Direct Investment (FDI) are allowed in the agriculture and allied sectors. FDI up to 100 percent is permitted under automatic route in specified activities of the agriculture and allied sectors (The details are at Annexure).   Further, 100  percent  FDI  is  also  allowed  under  automatic  route  in  the  plantation  sector  namely  tea, coffee, rubber, cardamom, palm oil tree and olive oil tree.

(c):       Government launched Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in July, 2015 which  aims at providing end to end solutions in irrigation supply chain, viz. water sources, and distribution  network  and  farm  level  applications.  Under  the  above  Scheme,  micro  irrigation  is being popularised to ensure 'Per drop-More crop'. The achievement made under PMKSY 'Per Drop More Crop' Scheme, during the year 2015-16 and 2016-17 are given as under:

| Year                        |   Area covered (Ha) |
|-----------------------------|---------------------|
| 2015-16                     |              572980 |
| 2016-17 (up to 30.11.2016 ) |              179122 |

(d):          In  order  to  attract  farmers/workers  to  the  agriculture  sector  a  new  central  scheme, Attracting Rural Youth in Agriculture (ARYA) has been introduced by the Government.   It aims to  operate  through  selected  Krishi  Vigyan  Kendras    (KVKs)  in  the  country  and  envisages supporting  and  guiding  rural  youth  towards  income  generating  technologies,  services  and enterprises, which are essentially required in the villages .

As per Employment and Unemployment Survey conducted by National Sample Survey Office (NSSO) for 2011-12 (latest available) the share of employment in agriculture & allied has been 48.9% as compared to 24.3% in industrial and 26.8% in service sectors.

(e): No,  Madam.

Annexure

## Annexure referred  to reply to part (b) of Lok Sabha Unstarred Q. No. 3358 due for reply on 6.12

| Para 5.2.1 of ' Consolidated FDI Policy Circular of 2016' on Agriculture   | Para 5.2.1 of ' Consolidated FDI Policy Circular of 2016' on Agriculture                                                                                                                                                                                                                                                                                                                                                                                        | Para 5.2.1 of ' Consolidated FDI Policy Circular of 2016' on Agriculture                                                                                                                                                                                                                                                                                                                                                                                        | Para 5.2.1 of ' Consolidated FDI Policy Circular of 2016' on Agriculture                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sl. No.                                                                    | Sector/Activity                                                                                                                                                                                                                                                                                                                                                                                                                                                 | % of Equity/ FDI Cap                                                                                                                                                                                                                                                                                                                                                                                                                                            | Entry Route                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Agriculture                                                                | Agriculture                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Agriculture                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Agriculture                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 5.2.1                                                                      | Agriculture & Animal Husbandry                                                                                                                                                                                                                                                                                                                                                                                                                                  | Agriculture & Animal Husbandry                                                                                                                                                                                                                                                                                                                                                                                                                                  | Agriculture & Animal Husbandry                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                            | a) Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions; b) Development and Production of seeds and planting material; c) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture; and d) Services related to agro and allied sectors Note: Besides the above, FDI is not allowed in any other agricultural sector/activity                                                            | 100%                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Automatic                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 5.2.1. 1                                                                   | Other Conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                               | Other Conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                               | Other Conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                            | I. The term 'under controlled conditions' covers the following: (i) 'Cultivation under controlled conditions' for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly | I. The term 'under controlled conditions' covers the following: (i) 'Cultivation under controlled conditions' for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly | I. The term 'under controlled conditions' covers the following: (i) 'Cultivation under controlled conditions' for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly |

| Para 5.2.2   | Plantation                                                                                                                                                                                                                                                             | Plantation         | Plantation   |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------|
|              | Sector/ Activity                                                                                                                                                                                                                                                       | %of Equity FDI Cap | Entry Route  |
|              | (i) Tea sector including tea plantation (ii) Coffee plantations (iii) Rubber plantations (iv) Cardamom plantations (v) Palm oil tree plantations (vi) Olive oil tree plantations Note: Besides the above, FDI is not allowed in any other plantation sector/ activity. | 100%               | Automatic    |

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