An economy is called agrarian if its share of the primary sector is 50 per cent or more in the total output (the GDP) of the economy. With context Indian agricultural economy consider the following statements:

1. Currently the primary sector in India contributes 55 percent to total Gross Value added.

2. Despite India being an agricultural economy, the total agri-export basket accounts for little over 2.5% of world-wide agri-trade.

Which of the statements given above is/are correct?

Solution

● Statement 1 incorrect: The primary sector in India (agriculture and mining sectors) contributes around 17-18 % of Gross Value Added (GVA) on an average and employs around 43 per cent of the workforce (as per PLFS, 2018-19). This is classic case of Disguised unemployment and also is an indicator of huge potential to shift people from this sector to gainful employment opportunities in other sectors. ● Statement 2 correct: According to various estimates like the Economic Surveys and other government publications, India’s agricultural and allied exports has remained low for little over 2.5% of world agri-trade. o The major export destinations were the USA, Saudi Arabia, Iran, Nepal and Bangladesh. o The top agriculture and related products exported from India were marine products, basmati rice, buffalo meat, spices, nonbasmati rice, cotton raw, oil meals, sugar, castor oil and tea. ● On the positive note, in the past few years India’s agriculture exports have seen an uptick. For instance, Government informed Lok Sabha that, India's agricultural exports have risen 6.04 per cent between April 2022 and January 2023 in comparison to the same period the previous year. Agricultural exports amounted to $40.90 billion between April 2021 and January 2022, the figure is $43.37 billion for the same months in 2022-23.  During the financial year 2021-22, India’s agricultural exports touched the highestever level of $50.21 billion.