ACKNOWLEDGEMENT

The success and final outcome of this report required a lot of guidance and assistance from me and
different internet sources. First of all I am grateful to Allah who gives me sound mind and sound health
to accomplish my report. The completion of the report gives me much pleasure. I would like to express
my gratitude and appreciation to all those who gave me the possibility to complete this report. A special
thanks to my course teacher Mr. SMA Moudud Alom whose assistance, stimulating suggestions and
encouragement helped me to coordinate especially in writing this report. Again thanks goes to my
course teacher Mr. SMA Moudud Alom who gave his full effort in guiding me in achieving the goal as
well as his encouragement to maintain my progress in track. Last but not least, I like to express my
gratitude to respondents for support and willingness to spend some time with me. I hope, I would be
able to meet up the required expectations of all.
 Table of Contents
CHAPTER-01: Introduction ................................................................................................................... 3
1.1: Background: ................................................................................................................................. 3
1.2 :Objective ...................................................................................................................................... 4
1.3: Methodology ................................................................................................................................ 4
1.3.1Sources of Data ...................................................................................................................... 4
1.3.2: Tools and Technique s .......................................................................................................... 5
1.3.3: Limitation of the study: ......................................................................................................... 5
CHAPTER TWO- Body of the report: ................................................................................................... 5
2.1 Financial Year 2015-2016:............................................................................................................ 6
2.2 Financial Year 2016-2017:............................................................................................................ 7
2.3: Financial Year 2017-2018:........................................................................................................... 8
2.4:Summary of Findings: .................................................................................................................. 9
Chapter 3:- Conclusions and Recommendations .................................................................................... 9
ABBREVIATION: ............................................................................................................................... 11
Reference: ............................................................................................................................................. 11
CHAPTER-01: Introduction
1.1: Background:

Bangladesh, a country that covers an area of 147,570 square kilometer, is one of the predominantly
agro-based developing countries in the world. Since her independence in 1971, agriculture has been the
core sector of Bangladesh economy, which is still contributing around 17 percent of the GDP and also
providing employment to 45 percent labor force ("Bangladesh", 2016). Around 84 percent of the rural
people of the country depend on agriculture for their livelihood directly or indirectly(Mirza et al. 2015)
Moreover, it is the primary source of employment, livelihood, and food security for the majority of rural
people and also provides raw material to industry and contributes to country‘s exports. Although
modern economy is largely dependent on industrialization, agriculture remains the lifeblood for many
agrarian economies like Bangladesh. It is proved that there is a positive relation between agriculture
and economic growth (Xuezhen et al. 2010). Over time, the share of agriculture in GDP has significantly
declined in Bangladesh. But the contribution of agriculture to nonagricultural growth has maintained
an upward trend and it remains an irreplaceable driving force for economic growth of the country.

According to the Bangladesh Economic Survey-2019 , growth rate of the agricultural production was
2.58 per cent in the outgoing fiscal year 2018-19, 0.87 percentage points lower than the 3.47 per cent
growth in the FY18.

Besides, contribution of the agriculture sector to the country’s gross domestic product dropped by 0.56
percentage points to 10.11 per cent in FY19 from 10.67 per cent in FY18.

According to the World Bank, the total arable land in Bangladesh is 61.2 percent of the total land area
(down from 68.3 percent in 1980). Farms are usually very small due to heavily increasing population,
unwieldy land ownership, and inheritance regulations. The 3 main crops—rice, jute, and tea—have
dominated agricultural exports for decades, although the rice is grown almost entirely for domestic
consumption, while jute and tea are the main export earners. In addition to these products, Bangladeshi
farmers produce sugarcane, tobacco, cotton, and various fruits and vegetables (sweet potatoes, bananas,
pineapples, etc.) for the domestic market.

Many researchers have examined the role of agriculture on development. Some of them say that
agriculture plays an important role for the economic growth. So we can say that investing in agriculture
is not a foul decision. Just think if the production of foods stopped what would happen to the huge
population. Though the current earning of GDP is low compared to the people employed in agricultural
sector. These are mainly related to non-skilled workforce, use of low level and time-consumed
technology and old fashioned cultivation that deserve revolutionary change. However, since professions
of the ruling elites of a country are not agriculture, they are not serious ensuring a good life for the
framers. Some of the developed countries provide subsidy for their agriculture industry, while most of
the developing worlds impose higher tax to their poor farmers compared to the richer industrialists. It
is worth to note that privileged group also does not pay the right tax imposed to them since they have
very diplomatic and corrupt connection with high officials and politicians. Moreover, farmers have to
pay tax for their land whether they make profit or not. On over that there are many natural calamities
and for that farmers cannot cultivate regularly but they have to surely pay ‘land tax’. But who are service
holders they get pension after their retirement whereas farmers don’t get these type of benefit from the
government. These inequality lead farmers to be di-motivated doing cultivation though still agriculture
is the biggest sector for national income. While recent arguments of economists at the field of science
are related to GDP and GNP growth, others socialists believe that even though fundamental
contributions of agriculture industry for economic development is lower, the overall contribution
towards development made by agriculture sector is significantly wider. They argue that scientific
industries are using the raw materials provided by agriculture industry. There are many other problems
like child education, don’t get chance in high quality education, no voice in the legislation process,
unfavorable fiscal policies etc. Moreover, our daily lodging and food would not be managed if there is
no strong agriculture sector. The problem is there is no other sector that can provide employment for
huge population. So country needs to have many high earning sectors that can provide employment.
For maintaining the supply chain of food for vast population and raw materials for other heavy
industries with employing a reasonable number of populations a country need strong agricultural sector.
For this purpose, Gardner said in 2000 that to make some difference, agriculture dependent countries
urgently need a trained workforce working at every level of agro economy sector. For that quality
agriculture researchers are needed. Unfortunately, countries dependent on agriculture do not grant any
research on agriculture rather they depend on the researches conducted by the industrialized countries.

1.2:Objective:

This study give us the idea of how much Agriculture sector (crops, animal farming, forests and fishing
) contribute in our Nations GDP in 2015-2018 and also help us to future policy making.

1.3: Methodology: The research methodology means the way in which we would complete
our prospected task. Before undertaking any task it becomes very essential for anyone to determine the
problem of study. For this research I used secondary source of data.

1.3.1 Sources of data:

In this study I used secondary source of data. I mostly used mentioned sources for the report.
  Journals / Periodicals
 Reports of Bangladesh Bureau of Statistics
 Magazines / Newspapers
 E-journals
 Different publications

1.3.2 Tools and Techniques:

As, no study could be successfully completed without proper tools and techniques, same with my
project. For the better presentation and right explanation I used tools of statistics and computer very
frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for
project from statistics are-

 Bar Charts
 Pie charts
 Tables
 Column

Bar charts and pie charts are really useful tools for every research to show the result in a clear, ease and
simple way. Because I used bar charts and pie charts in project for showing data in a systematic way,
so it was not necessary for any observer to read all the theoretical detail, simply on seeing the charts
anybody could understand that what is being said.

1.3.3 Limitation of the study:

The limitations I faced for the study

 It was critical for me to gather the actual scenario which data I choose
 Since my study is based on secondary data, there might have some misinformation
 Due to time limitations many of the aspects could not be discussed in the present report.

2 CHAPTER TWO- Body of the report

Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within
a country during a specific period. GDP provides an economic snapshot of a country, used to estimate
the size of an economy and growth rate
2.1 Fiscal year 2015-2016:

The agriculture sector, which contributes about 15.33% of the total GDP, includes three subsectors
namely (i) Crops and horticulture (ii) Animal farming and (iii) Forest and related services. GDP was
7.11%

Sectoral share of GDP Percentage

1.Agriculture 15.35%

 Agricultural and Forestry 11.70%

 Crops and Horticulture 8.35%

 Animal Farming 1.66%

 Forest and Related Services 1.69%

3.65%
 Fishing

Industry 31.54%

Service 53.12%

Source: Bangladesh Bureau of statistics year book (2016)

Sectoral Compostion of GDP FY Breakdown of Agricultural Sector in

2015-16 GDP FY2015-16

15.35% Crops and

Horticulture

Agriculture 3.65% Animal Farming

Industry
53.12% 1.69% 8.35% Forest and
31.54 % Service Relative services
1.66%
Fishing
2.2 Fiscal year 2016-2017:
The agriculture sector contributes about 14.74% of the total GDP. It includes three subsectors namely
(i) Crops and horticulture (ii) Animal farming and (iii) Forest and related services.

Sectoral share of GDP Percentage

1.Agriculture 14.74%

 Agricultural and Forestry 11.12%

 Crops and Horticulture 7.86%

 Animal Farming 1.60%

 Forest and Related Services 1.66%

3.61%
 Fishing

Industry 32.42%

Service 52.85%

Source: Bangladesh Bureau of statistics year book (2017)

Breakdown of Agricultural Sector in

GDP FY2016-17
Sectoral Compostion of GDP FY 2016-
17

3.61%

14.74% 1.66% 7.86%

52.85% 1.60%
32.42%

Crops and Horticulture

Animal Farming
Forest and Relative services
Agriculture Industry Services Fishing
2.3 Fiscal year 2017-2018:
The agriculture sector contributes about 14.23% of the total GDP. It includes three subsectors namely
(i) Crops and horticulture (ii) Animal farming and (iii) Forest and related services. The GDP was
7.86%

Sectoral share of GDP Percentage

1.Agriculture 14.23%

 Agricultural and Forestry 10.67%

 Crops and Horticulture 7.51%

 Animal Farming 1.53%

 Forest and Related Services 1.62%

3.65%
 Fishing

Industry 33.66%

Service 52.11%

Source: Bangladesh Bureau of statistics year book (2018)

Breakdown of
Agricultural Sector in
GDP FY2017-18
Sectoral Compostion of GDP FY
2017-18

3.65%
14.23%
7.51%
52.11% 1.62%
33.66%
1.53%

Crops and Horticulture

Animal Farming
Forest and Relative services
Agriculture industry Services Fishing
 2.4.Summery of findings:
From this report we clearly summarized that percentage of Agriculture in GDP share is
gradually decreasing we used the secondary data from BBS and put it in excel to form bar chat which
will give us the idea of change and we found the below figure which indicate the percentage is
decreasing but the other sector like industry and service percentage is increasing.
Agriculture Sector GDP percentage

15.23%

14.74%

14.23%

FY2015-16 FY2016-17 FY2017-18

Financial Year

CHAPTER-3
Conclusion and Recommendation:
Bangladesh has undergone some structural transformation over the past four decades, where the share
of agriculture in the gross-domestic product (GDP) declined from around 60 percent in the early 1970s
to 15 percent in 2016.
It is important to note that the structural transformation through manufacturing is primarily the
movement of labour from agriculture to manufacturing. Successful newly industrialised countries from
East and Southeast Asia, at their peak of industrialisation, had employment share in manufacturing well
above 20 percent. Also, the share of manufacturing in GDP in those countries at their peak was well
above 30 percent. Despite the fact that over the past four decades, the share of agriculture in employment
in Bangladesh declined, agriculture still accounts for over 40 percent of total employment. The labour
released from agriculture has been absorbed primarily in the low-productive services and non-
manufacturing industrial (especially construction) sectors. This process has led to an unsuccessful
headway towards the creation of productive jobs, slow progress in reduction in poverty as well as rising
inequality.
Bangladesh has huge potentiality in many Agricultural sector which is untouched.With proper
management and policy making agriculture can play vital in our nations economy and I think that would
be the sustainable development for our country as well as world.
ABBREVIATION
BBS : Bangladesh Bureau of Statistics
BFDC : Bangladesh Fisheries Development Corporation
BFIDC : Bangladesh Forest Industries Development Corporation
BMPI : Building Materials Price Index
BOP : Balance of Payment
BSIC : Bangladesh Standard Industrial Classification
CFC : Consumption of Fixed Capital
C&F : Clearing and Forwarding
CPI : Consumer Price Index
CSPS : Community Social and Personal Services
DAM : Department of Agricultural Marketing
FY : Fiscal Year
FISIM : Financial Intermediation Services Indirectly Measured
GCF : Gross Capital Formation
GDP : Gross Domestic Product
GFCF : Gross Fixed Capital Formation
GNI : Gross National Income
GO : Gross Output
GVA : Gross Value Added

Reference:
1. National Accounts Statistics (Provisional Estimates of GDP, 2015-16 and Final Estimates of
GDP, 2014-15).
2. National Accounts Statistics (Provisional Estimates of GDP, 2016-17 and Final Estimates of
GDP, 2015-16).
3. National Accounts Statistics (Provisional Estimates of GDP, 2017-18 and Final Estimates of
GDP, 2016-17).
4. National Accounts Statistics (Provisional Estimates of GDP, 2018-19 and Final Estimates of
GDP, 2017-18).
5. Mirza.,Uddin M.M (2015) Causal Relationship between Agriculture, Industry and Services
Sector for GDP Growth in Bangladesh: An Econometric Investigation, Journal of Poverty,
Investment and Development, ISSN 2422-846X Vol.8, 2015
6. Wang, X. Z., Wu, S. L., and Gao, F. (2010), The relationship between economic growth and
agricultural growth: The case of China. Paper presented at International Conference on E-
Business and E-Government (ICEE), Guanghou, China