The share of agriculture sector in India’s gross domestic production (GDP) has declined to 15 percent due to shift from traditional agrarian economy to industry and service sector. Hence, 60 percent of the population, who is involved in agriculture and allied activities, is contributing just 15 percent to the GDP. “This is a challenge for next 15 to 20 years to shift 30 percent population from agriculture sector to manufacturing, infrastructure and other non-farm sectors,” said, Union Finance Minister Arun Jaitley, while speaking on Land Acquisition Ordinance in Rajya Sabha today.
Despite the fact that the contribution of agriculture sector to India’s GDP has been declining since independence, the sector has grown 3 to 4 percent per annum during the last decade. The fall of agriculture share in GDP is due to the rising contribution by industry and service sector. In the last 15-20 years, there has been tremendous growth in the IT sector, increasing its contribution to GDP. The rise in the non-farm sector has been directly proportional to the decline of agriculture sector’s contribution to GDP.
Replying to the Opposition labelling the current amendment as anti-farmer, Jaitley said, as per the current Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the Government cannot even acquire land for rural infrastructure projects such as irrigation projects, Pradhan Mantri Gram Sadak Yojana (PMGSY), rural electrification projects or affordable housing project Indira Awaas Yojana, among others, for rural poor.