Agriculture Under Indian Economy
The Economy of India is the 6th largest in the world measured by nominal GDP and the third largest by purchasing power parity (PPP) after US and China. The long term growth prospects of Indian Economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates and increasing integration into global economy. India has classified and tracked its economy and GDP as three sectors - agriculture, industry and services.
India has one of the fastest growing service sectors in the world with annual growth rate of above nine percent since 2001, which contributed to 57 percent of GDP in 2012-13. The Industry sector contributed 26 percent of GDP and agriculture sector contributed 17 percent. Agriculture sector’s contribution further declined to 15 percent in the year 2016. Out of the total population of 1.3 billion, close to 60 percent is dependent on agriculture for their livelihood. 60 percent of the country’s population contributes just 15 percent to the nation’s GDP which is clear imbalance. The Indian rural population is excessively dependent on agriculture for its livelihood. This results in under employment and low per capita returns.
