Growth rate of agri, allied sector slips below one pc in 2023-24

In the current financial year (2023-24), the growth rate of agriculture and allied sector has gone below one percent and it is estimated to be at 0.7 percent. Whereas last year the agriculture sector grew at the rate of 4.7 percent. At the same time, in the third quarter of the current year, a decline of 0.8 percent has been recorded in the production of agriculture and allied sectors, that is, it has shrunk. 

Ajeet Singh Ajeet Singh
Published: Mar 1, 2024 - 12:36 Updated: Mar 1, 2024 - 12:44
Growth rate of agri, allied sector slips below one pc in 2023-24

In the current financial year (2023-24), the growth rate of agriculture and allied sector has gone below one percent and it is estimated to be at 0.7 percent. Whereas last year the agriculture sector grew at the rate of 4.7 percent. At the same time, in the third quarter of the current year, a decline of 0.8 percent has been recorded in the production of agriculture and allied sectors, that is, it has shrunk.

However, the growth rate of the Indian economy is estimated to be 7.6 percent in the current year, which has increased at the rate of 8.2 percent during the third quarter (Oct-Dec, 2023). But it has become clear from these figures that the last monsoon was not normal and a large part of the country was in the grip of drought. Not only this, but due to this situation agriculture and the rural economy have been badly affected.

The main reason for the weak demand situation from the rural market has been the weak growth rate. This picture has emerged from the economic growth rate data released by the National Statistical Office (NSO) on Thursday.

According to NSO, the growth of gross domestic product (GDP) increased to 8.4 percent in the third quarter (Oct-Dec) of the financial year 2023-24. Due to this, the growth rate of the Indian economy is estimated to be 7.6 percent in the current financial year. GDP growth has increased due to improvements in manufacturing, construction, and mining sectors but at the same time, there has been a decline in the agricultural sector.

The growth of agriculture and allied sectors has declined to 0.8 percent, implying that though the country's economy is growing, there is a decline in the production of agriculture and related sectors. According to data released by NSO, GDP growth in the Oct-Dec 2022 quarter was 4.3 percent. In the third quarter of the current financial year, manufacturing growth was 11.6 percent and mining growth was 7.5 percent. The growth of the construction sector was 9.5 percent.

There was a decline of 0.8 percent in the production of the agriculture sector during the third quarter of the current financial year, whereas it had registered a growth of 5.2 percent in the same period last year. In the current financial year, the growth of the agriculture sector will decline to 0.7 percent as compared to 4.7 percent last year. This figure is an alarm bell for agriculture and related sectors.
Government data shows that services related to trade, hotels, transport, communication, and broadcasting grew by 6.7 percent during the third quarter compared to 9.2 percent growth in these sectors in the same period last year. Financial, real estate, and professional services grew 7 percent -- up from 7.7 percent a year earlier. 
NSO has also released the second advance estimate for the current financial year. In the first advance estimate released in January, GDP growth this year was expected to be 7.3 percent. According to second advance estimates, GDP growth in the year 2023-24 will be 7.6 percent. The NSO revised downward the GDP growth for 2022-23 to 7 percent from 7.2 percent estimated earlier. 

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