Schemes to Increase the Growth Rate of Agriculture

Government has launched several schemes to increase the growth rate of agriculture and boost farm production in terms of its contribution to the GDP such as Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Development and Strengthening of Infrastructure facilities for Production and Distribution of Quality Seed, National Horticulture Mission (NHM), Rainfed Area Development Programme (RADP), Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), Gramin Bhandaran Yojana etc. In addition, Government has substantially improved the availability of farm credit; implemented a massive programme of debt waiver; introduced better crop insurance schemes; increased Minimum Support Price (MSP), improved marketing infrastructure, etc.

As per the First Revised Estimates released by the Central Statistics Office (CSO) on 31st January, 2013, contribution of the agriculture sector to the Gross Domestic Product (GDP) of the country at 2004-05 prices declined from 14.6 % in 2009-10 to 14.5 % in 2010-11 and further to 14.1 % in 2011-12. Similarly, this sector registered a growth rate of 0.8 % in 2009-10, 7.9 % in 2010-11 and 3.6 % in 2011-12 at 2004-05 prices. Further, as per the Provisional Estimates released by CSO on 31st May, 2013, the contribution of agriculture to the GDP is likely to decline to 13.7 % in 2012-13 and this sector is estimated to grow at 1.9 % in 2012-13 at 2004-05 prices. The decline in growth rate and contribution of agriculture to GDP is on account of structural changes due to a shift from a traditional agrarian economy to a service dominated one. This phenomenon is generally expected in the normal development of an economy. Despite this, the production of foodgrains has increased from 230.8 million tons in 2007-08 to 255.4 million tonne in 2012-13 (4th Advance Estimates). Similarly, productivity of foodgrains has increased from 1860 kg. per ha. in 2007-08 to 2125 kg. per ha. in 2012-13 (Fourth Advance Estimates).