Lok Sabha Question No. 2481 (UNSTARRED), answered on 2021-08-03
Subject: Agriculture Contribution towards GDP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Nama Nageswara Rao

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2481

TO BE ANSWERED ON THE 3 RD  AUGUST, 2021

## AGRICULTURE CONTRIBUTION TOWARDS GDP

## 2481. SHRI NAMA NAGESWARA RAO:

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

- (a) the  contribution  of  agriculture  and  allied  sectors  towards  the  Gross  Domestic Product (GDP) of the country, achieved during each of the last three years;
- (b) whether  the  contribution  of  agriculture  sector  to  the  economy  has  witnessed  a declining trend over the years and if so, the details thereof and the reasons therefor;
- (c) whether  the  present  level  of  investment  in  agriculture  and  allied  sectors  under various Government schemes is inadequate;
- (d) if so, the details thereof and the reasons therefor; and
- (e) the  steps  proposed  to  be  taken  by  the  Government  to  increase  the  capital investment in agriculture sector to increase the agricultural growth rate and to enhance the contribution of the sector to the GDP?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) & (b)  As per Provisional Estimates of Annual of National Income, released by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on 31 st May 2021, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country during the last three years at current prices is given below.

( in percent)

| Year    |   Percentage Share of GVA of Agriculture and Allied sector to Total Economy |
|---------|-----------------------------------------------------------------------------|
| 2018-19 |                                                                        17.6 |
| 2019-20 |                                                                        18.4 |
| 2020-21 |                                                                        20.2 |

Source: National Statistical Office (NSO), M/o Statistics & PI.

(c) to (e): As per First Revised Estimates of National Income for 2019-20 released on on 29 th January  2021,  Gross  Capital  Formation  (GCF)  in  agriculture  and  allied  sectors  at current prices during the last three  years (latest available) is given below.

(₹ crore)

| Year    | Gross Capital Formation (GCF) of Agriculture, forestry and fishing at Current Price   |
|---------|---------------------------------------------------------------------------------------|
| 2017-18 | 3,62,706                                                                              |
| 2018-19 | 4,07,842                                                                              |
| 2019-20 | 4,46,044                                                                              |

Source: National Statistical Office (NSO), M/o Statistics & PI.

Agriculture being a State subject, the State Government is primarily responsible for the growth and development of agriculture sector and developing perspective plans for their respective  States  and  ensuring  effective  implementation  of  the  programmes/schemes. However, Government of India supplements the efforts of the State Governments through various Schemes / Programmes.   The details of various schemes, reforms and policies are given below.

-  Unprecedented enhancement in budget allocation
-  Fixing of MSP at one-and-a half times the cost of production
-  Increase in procurement from farmers
-  Income support to farmers through PM KISAN
-  Pradhan Mantri Fasal BimaYojana (PMFBY)
-  Institutional credit for agriculture sector
-  Providing Soil Health Cards to farmers
-  Promotion of organic farming in the country
-  Neem Coating of Urea
-  Agri Infrastructure Fund
-  Promotion of FPOs Scheme
-  National Bee and Honey Mission (NBHM)
-  Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
-  Micro Irrigation Fund
-  Agricultural Mechanization
-  Changes in Disaster Relief Standards
-  Setting up of E-NAM extension Platform
-  Improvement in farm produce logistics, Introduction of Kisan Rail
-  Creation of a Start-up Eco system in agriculture and allied sector

Government has taken several steps for increasing investment in agriculture sector such  as  enhanced  institutional  credit  to  farmers;  promotion  of  scientific  warehousing infrastructure  for  increasing  shelf  life  of  agricultural  produce;  setting  up  of  Agri-tech Infrastructure  Fund  for  making  farming  competitive  and  profitable;  developing  commercial organic farming etc. Government is implementing various schemes for supply of farm inputs, like seeds, fertilizers, agricultural machinery and equipments, irrigation facilities, institutional credit, etc., at subsidized rates to the farmers in the country. Government has recently taken several  steps  for  increasing  investment  and  growth  in  agriculture  sector  which  include creation of Long Term Irrigation Fund (LTIF), Micro Irrigation Fund for water use efficiency, promotion of  commercial  organic  farming,  etc.  The  details  of  such  major  schemes  /steps are given below.

Government of India  has  launched the  Central  Sector  Scheme  of  financing  facility under Agriculture Infrastructure Fund (AIF) to boost Agriculture Infrastructure relating to post harvest management and community farming assets. Under this scheme entities such as farmers, agri entrepreneurs, starts up, Central/ State agency or local body sponsored public private  partnership  projects  etc.  can  take  benefit  for  setting  up  eligible  infrastructure projects.  Under  Rashtriya  Krishi  Vikas  Yojana  (RKVY)  Scheme  of  Ministry  of  Agriculture, grants-in-aid is given to state governments on the basis of the projects approved in State Level  Sanctioning  Committee  Meeting  (SLSC).  States  can  take  up  projects  for  the development  of  Agriculture  and  allied  sector  in  Public  Private  Partnership  (PPP)  for Integrated Agriculture Component.

Under  Mission  for  Integrated  Development  of  Horticulture  (MIDH)  of  this  Ministry financial assistance in the range of 35% to 55% of eligible projects cost is available in the form of credit linked back ended for creation of Post-Harvest management infrastructure like Pack Houses, Pre-cooling units, Integrated pack houses, Refrigerator van, Primary/mobile Processing  unit,  cold  storage  etc  farm  gete  level  to  consumption  level.  The  post-harvest component is demand/entrepreneurs-driven from among entrepreneurs, private companies, cooperatives,  farmers  groups  etc.  through  commercial  ventures  for  which  assistance  is available through respective State Horticulture Mission.

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme is being implemented with a view to provide income support to all landholding farmer families across the  country,  to  enable  them  to  take  care  of  expenses  related  to  agriculture  and  allied activities as well as domestic needs. The Scheme, effective from 1.12.2018, aims to provide a  payment  of  Rs.6000/-  per  year  for  the  farmers'  families  with  cultivable  land  holding, subject  to  certain  exclusions.  The  financial  benefit  of  Rs.6000/-  is  being  released  by  the Central Government in three 4-monthly instalments of Rs.2000/- over the year directly into the bank accounts of the eligible farmers under Direct Benefit Transfer mode.

Further, Government of India has launched the Aatmanirbhar Bharat Abhiyan (ABA) to  strengthen  Infrastructure,  Logistics,  Capacity  Building,  Governance  and  Administrative Reforms for Agriculture.

*******