Agriculture's share in GDP declines to 13.7% in 2012-13

Although production of foodgrains has increased from 230.8 MT in 2007-08 to 255.4 MT in 2013-14

The share of agriculture and allied sectors in India's GDP has declined to 13.7% in 2012-13 due to shift from traditional agrarian economy to industry and service sectors, Parliament was informed today.

"As per latest estimates released by Central Statistics Office (CSO) the share of agricultural products/Agriculture and Allied Sectors in Gross Domestic Product (GDP) of the country was 51.9% in 1950-51, which has now come down to 13.7% in 2012-13 at 2004-05 prices," Minister of State for Agriculture Tariq Anwar said in a written reply to the Rajya Sabha.

The decrease in the share of Agricultural and Allied Sectors in GDP of the country in comparison to other sectors is on account of structural changes due to a shift from a traditional agrarian economy to industry and service dominated one, he added.

"This phenomenon is generally expected in the normal development of an economy," Anwar said.

In a separate query, the minister said despite a decline in the sector's contribution to GDP, foodgrain production and productivity has risen.

"Despite this, the production of foodgrains has increased from 230.8 million tonnes in 2007-08 to 255.4 million tonnes in 2013-14 (fourth advance estimates)," Anwar added.

Similarly, productivity of foodgrains has increased from 1,860 kg per hectare in 2007-08 to 2,125 kg a hectare in 2012-13 (fourth advance estimate), he said.