- April 18, 2022
- Posted by: admin1
- Category: DPN Topics
Section: National Income
According to NITI Aayog, India can expect another good year of agriculture growth if the monsoon is normal as predicted. This, along with high commodity prices, could bring growth in agriculture GVA to 4 per cent.
Sectoral share of the GVA:
- Agriculture- Least impacted by pandemic related disruption, grew at 3.6% in 2020-21 and projected to grow at 3.9% in 2021-2022.
- Industry- Though contracting by 7% in 2020-21, it is projected to expand by 11.8% in 2021-22
- Service- Services account for more than half of the Indian economy and was the most impacted by the COVID19 related restriction, especially for the activities that need human contact. This sector contracted by 8.4% in 2020-21, however estimated to grow at 8.2% in 2021-22.
Share of sectors in nominal GVA (%)
- The agriculture sector has experienced buoyant growth in the past two years.
- The sector, which is the largest employer of workforce, accounted for a sizable 18.8 per cent (2021- 22) in Gross Value Added (GVA) of the country registering a growth of 3.6 per cent in 2020-21 and 3.9 per cent in 2021-22.
- Growth in allied sectors including livestock, dairying and fisheries has been the major drivers of overall growth in the sector.
Percentage Share of GVA of Agriculture & Allied Sector to Total GVA (at current prices)
The share of the sector in total GVA of the economy has a long-term trend of around 18 per cent, improving to 20.2 per cent in the year 2020-21 and 18.8 per cent in 2021-22.
Growth of Agriculture and Allied Sectors (per cent)
|Gross Value Added (GVA)|
In 2015, India opted to make major changes to its compilation of national accounts and decided to bring the whole process into conformity with the United Nations System of National Accounts (SNA) of 2008.
As per the SNA, GVA is defined as the value of output minus the value of intermediate consumption and is a measure of the contribution to growth made by an individual producer, industry or sector. It provides the rupee value for the number of goods and services produced in an economy after deducting the cost of inputs and raw materials that have gone into the production of those goods and services.
Gross Value Added = GDP + subsidies on products – taxes on products
Earlier, India had been measuring GVA at ‘factor cost’ till the new methodology was adopted in which GVA at ‘basic prices’ became the primary measure of economic output.