Lok Sabha Question No. 1973 (UNSTARRED), answered on 2020-03-03
Subject: Growth Rate in Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hibi Eden

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

## LOK  SABHA UNSTARRED QUESTION NO.1973

TO BE ANSWERED ON THE 3 RD  MARCH, 2020

## GROWTH RATE IN AGRICULTURE SECTOR

1973.  SHRI HIBI EDEN:

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

- (a) the details of growth rate in agriculture sector during the last three years and the current year;
- (b) whether  the  aforesaid  sector  has  experienced  slump  in  growth  rate,  if  so,  the  details thereof and the reasons therefor;
- (c) whether the Government has proposed to give boost to agriculture sector by providing maximum tax benefit and if so, the details thereof; and
- (d) the other steps taken by the Government to augment growth in agriculture sector?

## ANSWER

MINISTER  OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) & (b): The  Production  of  Foodgrains,  horticultural  crops  and  growth  rate  of  Gross Value  Added  (GVA)  of  agriculture  and  allied  sector  (as  per  the  figures  released  by  Central Statistics Office) from 2016-17 to 2019-20 are detailed below:
- @ As per the revised estimates of national income released by CSO on  31 st January, 2020
- # As per the first advance estimates of national income released by CSO on 7th January, 2020

| Year    | Food Grains (million tonnes)   | Horticulture crops (million tonnes)   | Growth rate of GVA of agriculture and allied sector (at 2011-12 prices)   |
|---------|--------------------------------|---------------------------------------|---------------------------------------------------------------------------|
| 2016-17 | 275.11                         | 300.64                                | 6.8                                                                       |
| 2017-18 | 285.01                         | 311.70                                | 5.9                                                                       |
| 2018-19 | 285.21                         | 310.74                                | 2.4@                                                                      |
| 2019-20 | 291.95*                        | 313.35**                              | 2.8#                                                                      |

The  overall  economy  has  been  growing  at  a  faster  rate  than  the  agriculture  sector resulting  in  a  decline  of  the  share  of  agriculture  and  allied  sector  in  the  economy.  This  is  on account of structural changes due to a shift from a traditional agrarian economy to industry and service  dominated  one.  This  phenomenon  is  generally  expected  in  the  normal  development process of developing economies including India. GVA in agriculture and allied sectors is largely determined  by  the  level  of  production  in  agriculture  crops,  horticulture,  fisheries,  dairy  etc. Although, the production of foodgrains and horticultural crops, which is a major component in the overall value of output/GVA in agriculture has been showing an increasing trend as given in the  table  above,  the  growth  rate  of  GVA  of  agriculture  has  been  volatile  due  to  cyclical fluctuations on account of the extent and spatial distribution of rainfall during monsoon season, unseasonal rains/ hailstorms, adverse temperature conditions etc.

(c): Agriculture  income  is  exempt  under  clause  (1)  of  section  10  of  the  Income-tax  Act, 1961, however it is included in the total income for rate purposes for computing the income tax liability  if  the  agricultural  income  exceeds  Rs  5,000  and  if  the  total  income,  excluding  the agricultural income exceeds the basic exemption limit of Rs 2,50,000.

Apart from this, as per the present Goods and Services Tax (GST) system, most of the agriculture relevant inputs are either 'Nil' rated or command minimum GST.

(d): As per the Seventh Schedule of Constitution of India, land comes under the purview of State Governments and, therefore, it is for the State Governments to make efforts to increase growth of agriculture sector. However, Government of India supplements the efforts of the State Governments through various crop development Schemes/Programmes. Government of India has  been  implementing  various  schemes  namely  Rashtriya  Krishi  Vikas  Yojana  (RKVY)-  to provide  more  flexibility  to  the  states  for  boosting  investment  and  enhancing  productivity  in agriculture  and  allied  sector;  Paramparagat  Krishi  Vikas  Yojana  (PKVY)-  to  promote  organic farming  with  usage  of  traditional  resources,  adopting  eco-friendly  low  cost  technologies;  Soil Health Card scheme- for improving soil health and its productivity;  Prime Minister Krishi Sinchai Yojana  (PMKSY)/  "Per  Drop  More  Crop"  -  for  precision  irrigation  and  better  on-farm  water management practices to  optimize the  use  of available  water  resources;  National  Agriculture Market  Scheme  (NAM)  to  connect  mandis  across  the  entire  country  through  a  common electronic-platform etc.

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