Agri share in GVA

Subject: Economy

Context:

The GVA of agriculture, forestry and fishing grew by 4.5 per cent in H1 FY23

Details:

Rabi sowing covers 89 per cent of the total area sown in the 2021 season
The agricultural GVA growth estimated at 3 percent for the last quarter of the current fiscal is due to base effect.
The agri GVA growth in Q4 of FY22 was over 4 per cent.
Overall farm sector GVA growth is projected to rise to 3.9 per cent in FY23 as against 3 per cent registered in FY22.
The GVA of other sub-sectors such as livestock and fisheries, recorded a CAGR of 6 per cent and 6.7 per cent, respectively during FY 2017-21, higher than the 2 per cent growth seen in the crops sector in the period.

Concept:

Agri-GVA

The agriculture and allied sectors grew at a positive growth rate of 3.6 per cent during 2020-21 and 3.9 per cent in 2021-22 being the least impacted due to the Covid 19.
The growth of agriculture & allied sectors is owed to the growth in the four constituents of agriculture & allied sectors namely crops, livestock, forestry & logging and fishing & aquaculture. It is observed that livestock and fisheries have been experiencing buoyant growth and have helped the sector perform well.

Growth of Agriculture and Allied Sectors (per cent)

The share of the sector in total Gross Value Added GVA of the economy has a long-term trend of around 18 per cent. The share of the agriculture & allied sector in total GVA, however, improved to 20.2 per cent in the year 2020-21 and 18.8 per cent in 2021-22.

The contribution of livestock and fisheries sectors in agricultural GVA have been rising while the share of the crop sector has declined.

According to official data, the livestock sector grew at a compound annual growth rate (CAGR) of 8.15% over the five years ending 2019-20. In contrast, the production of rice, wheat and coarse cereals expanded at CAGRs of 2.7%, 2.9% and 4.8% respectively between 2015-16 to 2020-21.
Production of horticultural crops — fruits, vegetables, plantation and spices which contribute a third of agriculture GVA, have witnessed a sustained growth in recent years.