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Figure 4: Percentage Share of GVA of Crop & Allied Sectors
in Total Agriculture GVA (at current prices)

Source: Based on data of DAFW.

Investment in Agriculture and Allied Sectors
7.5 Investment is critical to the growth of a sector. The Gross Capital Formation (GCF) in
agriculture and allied sectors relative to GVA in the sector has been showing a fluctuating
trend as shown in Figure 5. Fluctuation in the GCF in the sector arises mainly because of wide
fluctuations in private investment in agriculture and allied sectors. As may be observed in the
Figure 5, while public investment has remained stable between 2-3 per cent over the years,
the private investment has fluctuated and the total agricultural GCF has moved in sync with
variation in private investment.

7.6 Recognising that there exists a direct correlation between capital investments in agriculture
and its growth rate, there should be a focused and targeted approach to ensure higher public and
private investment in the sector. Higher access to concessional institutional credit to farmers and
greater participation of private corporate sector, whose investment rates are currently as low as
2 to 3 per cent in agriculture , may help in improving private investment in agriculture. Private
1
corporate investments need to be crowded in by offering an appropriate policy framework and
increase in public investment along the entire agricultural value system.

1. Report of the Doubling Farmers’ Income, 2018.