Sectors of Indian Economy

Sub sectors of primary sector

 Agriculture and allied activities
 Fishery
 Forestry
 Mining and Quarrying
 Features
 Share in national Income
 Largest employment providing sector
 Provision of food surplus to the expanding population
 Contribution to capital formation
 Providing raw materials to industries
 Importance in international trade
 Role in poverty reduction
 Agriculture
 Agriculture plays an important role in Indian
economy due to its contribution to income and
employment generation, forex earnings, industrial
growth and production of food.
 Policy makers in India gave priority to agricultural
sector in all the time. 
 GDP From Agriculture in India decreased to 5306.26
INR Billion in the first quarter of 2020 from 6098.83
INR Billion in the fourth quarter of 2019.
 It is estimated that India’s agriculture sector accounts
only for around 14 percent of the country’s economy
but for 42 percent of total employment. As around 55
percent of India’s arable land depends on precipitation,
the amount of rainfall during the monsoon season is
very important for economic activity
 Agriculture is the backbone of Indian economy.
Agriculture plays a vital role in India’s economy. Over
58 per cent of the rural households depend on
agriculture as their principal means of livelihood.
 Agricultural development in post-independence India
started as a response to food shortages and the green
revolution was designed to meet this challenge.
 Even after India became a net exporter of food grains,
the mindset continued and food security remained
central to agricultural planning.
 https://www.youtube.com/watch?v=xayxMQPtDX
A
 Salient Features
 Subsistence Type
 Dependent on unreliable monsoon (60 %)
 India’s vast relief, varying climate and soil conditions produce a variety
of crops
 All tropical, subtropical and temperate crops are grown
 Predominance of food crop → 2/3rd of total cropped area
 Poor electricity, storage, water, credit & marketing
 Less Mechanization; Inadequate Agricultural research
 1st rank in Milk (17% of world production), Mango, banana, coconut,
cashew, papaya, peas, cassava and pomegranate
 Largest producer and exporter of spices, Millets, Pulses, Dry Bean,
Ginger
 Overall, second largest producer of vegetable, fruits and fishes
 Have three main cropping seasons viz. Kharif, Rabi & Zaid
 Agri GDP growth has been sliding since the
beginning of 2018-19. Against the 5 per cent growth
reported in 2017-18, the year 2018-19 ended with a
growth of 2.75 per cent.
 For the June quarter, this segment’s growth in real
terms was 2 per cent, against 5.1 per cent in the same
quarter of the previous year.
 In the coming quarters, for agri GDP growth to
revive, the sub-sectors in agriculture – forestry,
livestock and fishing – need to show some strength
 For the full year in 2018-19, growth in agriculture
and allied activities was estimated at 2.7 per cent,
down from 5 per cent in 2017-18.
 “Low monsoon and post-monsoon rains have
pulled down post-kharif and rabi production,
which is being reflected in the GDP numbers as
well,” Madan Sabnavis, chief economist at CARE
Ratings, said.
Recent Trends &
Strategies
Some of the recent major Government
initiatives in the sector are as follows:
 In May 2020, Government announced the launch of
animal husbandry infrastructure development fund of Rs
15,000 crore (US$ 2.13 billion).
 In September 2019, Prime Minister, Mr Narendra Modi
launched National Animal Disease Control Programme
(NADCP), expected to eradicate foot and mouth disease
(FMD) and brucellosis in livestock. In May 2020, Rs
13,343 crore (US$ 1.89 billion) was allocated to the
scheme.
 In May 2019, NABARD announced an investment of Rs
700 crore (US$ 100 million) venture capital fund for
equity investment in agriculture and rural-focused start-
ups
 Under Union Budget 2019-20, Pradhan Mantri Samman Nidhi
Yojana was introduced where a minimum fixed pension of Rs
3000 (US$ 42.92) was to be provided to the eligible small and
marginal farmers, subject to certain exclusion clauses, on
attaining the age of 60 years.
 The Government of India came out with Transport and
Marketing Assistance (TMA) scheme to provide financial
assistance for transport and marketing of agriculture products in
order to boost agriculture exports.
 The Agriculture Export Policy, 2018 was approved by the
Government of India in December 2018. The new policy aimed
to increase India’s agricultural export to US$ 60 billion by 2022
and US$ 100 billion in the next few years with a stable trade
policy regime.
 The Government of India is going to provide Rs 2,000 crore (US$
306.29 million) for computerization of Primary Agricultural Credit
Society (PACS) to ensure cooperatives are benefitted through digital
technology.
 The Government of India launched the Pradhan Mantri Krishi
Sinchai Yojana (PMKSY) with an investment of Rs 50,000 crore
(US$ 7.7 billion) aimed at development of irrigation sources for
providing a permanent solution from drought.
 Government plans to triple the capacity of food processing sector in
India from the current 10 per cent of agriculture produce and has also
committed Rs 6,000 crore (US$ 936.38 billion) as investments for
mega food parks in the country, as a part of the Scheme for Agro-
Marine Processing and Development of Agro-Processing Clusters
(SAMPADA).
 The Government of India has allowed 100 per cent FDI in marketing
of food products and in food product E-commerce under the
automatic route.
 Conclusion
 India is expected to achieve the ambitious goal of doubling farm
income by 2022.
 The agriculture sector in India is expected to generate better
momentum in the next few years due to increased investments in
agricultural infrastructure such as irrigation facilities,
warehousing and cold storage.
 Furthermore, the growing use of genetically modified crops will
likely improve the yield for Indian farmers.
 India is expected to be self-sufficient in pulses in the coming few
years due to concerted efforts of scientists to get early-maturing
varieties of pulses and the increase in minimum support price.
 To boost adoption, the government should promote cost-effective
micro-irrigation system designs, simplify subsidy norms,
and strengthen capacity-building programmes for farmers.
Any Questions