Why 46% of India’s Population Working in the Agriculture Sector Contributes to Only 20% of the Country’s GDP

India, known as the "Land of Villages," harbors a paradox where nearly 46% of its population is employed in agriculture, yet the sector contributes only about 20% to the nation's GDP. This disparity underscores a structural imbalance within the Indian economy, rooted in historical, socio-economic, and environmental challenges. While agriculture remains central to rural livelihoods and national food security, its growth and productivity have lagged behind those of the industrial and service sectors. Factors such as small and fragmented landholdings, outdated farming practices, poor infrastructure, limited market access, climate vulnerability, and underinvestment in research and development contribute to this disconnect. This study analyzes these multifaceted issues, supported by empirical data and scholarly literature, and proposes a path forward through technological integration, better policy implementation, and investment in sustainable practices.

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Publication Details

Journal
International Journal For Multidisciplinary Research
Published
2025-05-20
DOI
https://doi.org/10.36948/ijfmr.2025.v07i03.45589
Primary Topic
Agricultural Economics and Practices
Type
article
Field-Weighted Citation Impact
0.00
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article

Why 46% of India’s Population Working in the Agriculture Sector Contributes to Only 20% of the Country’s GDP

Suresh Narang
International Journal For Multidisciplinary Research
Agricultural Economics and Practices
article

Why 46% of India’s Population Working in the Agriculture Sector Contributes to Only 20% of the Country’s GDP

Suresh Narang
article en

Abstract

India, known as the "Land of Villages," harbors a paradox where nearly 46% of its population is employed in agriculture, yet the sector contributes only about 20% to the nation's GDP. This disparity underscores a structural imbalance within the Indian economy, rooted in historical, socio-economic, and environmental challenges. While agriculture remains central to rural livelihoods and national food security, its growth and productivity have lagged behind those of the industrial and service sectors. Factors such as small and fragmented landholdings, outdated farming practices, poor infrastructure, limited market access, climate vulnerability, and underinvestment in research and development contribute to this disconnect. This study analyzes these multifaceted issues, supported by empirical data and scholarly literature, and proposes a path forward through technological integration, better policy implementation, and investment in sustainable practices.

International Journal For Multidisciplinary ResearchVol. 7(3)
Openalex Percentile: Top 84%
Agricultural Economics and Practices
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Why 46% of India’s Population Working in the Agriculture Sector Contributes to Only 20% of the Country’s GDP — Suresh Narang · International Journal For Multidisciplinary Research (2025) | TGRS Research Map | TGRS