Datanomics: accuracy improved
The impact of agricultural development on overall GVA is declining
Gross value added (GVA) of the agriculture and allied sector declined in FY2014 and could only increase in the following year due to lack of monsoon, but the overall GVA growth in those years was 7.2-8 per cent. Other years also confirmed this.
Farm’s share in total GVA fell
However, it would be a blanket statement to say that the overall economy has delinked from the agriculture sector. This is because the sector’s share in India’s GVA in FY2026 was still 16.78 per cent, even though it was down from 18.20 per cent in FY2015.
Crops still account for half of agriculture despite falling share
Monsoon variability heavily impacts crops, leading to decline in crop GVA in low monsoon years such as FY2014, FY15. However, the share of crops in agricultural GVA fell from 62 per cent to 54 per cent in FY2015, while that of livestock increased from 24 per cent to 31 per cent.
