Farm growth has declining impact on overall GVA
Farm and allied sector gross value added (GVA) contracted in FY14 and could merely grow in the subsequent year due to deficient monsoon but overall GVA growth was 7.2-8 per cent in those years. Other years also corroborated this point.
Farm’s share in overall GVA falls
However, it would be a sweeping statement to say that the overall economy is decoupled from the farm sector. This is so because the sector still accounted for 16.78 per cent of India’s GVA in FY26, even though less than 18.20 per cent in FY15.
Crops still account for half of agri despite share drop
Monsoon variability heavily affects crops, leading to a decline in crop GVA in deficient monsoon years like FY14, FY15. However, crops’ share in farm GVA fell to 54 per cent in FY25 from 62 per cent in FY15, while livestock rose to 31 per cent from 24 per cent.
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