India may be shining and the country's economy is growing rapidly to catch up with the developed world. But India's investment in agriculture seems to be declining year after year.
According to the latest estimates released by the Central Statistical Organisation (CSO), the total investment in agriculture has declined from 2.1 per cent in 2002-03 to 1.9 per cent during 2003-04 to 2005-06.
The drastic fall is in the tune of 20 per cent in just three years.
The report suggests the total investment in agriculture in term of Gross Capital Formation (GCF) as a proportion of total GDP had gone down in real terms (at 1999-2000 prices).
This decline in investment in agriculture as a proportion of total GDP follows from relatively faster pace of growth of total GDP than the growth of investment in agriculture.
However, the government can take solace from the fact that public sector investment in agriculture as a proportion of total GDP increased from 0.4 per cent in 2002-03 to 0.5 per cent in 2005-06.
But private sector investment in agriculture as a proportion of total GDP declined from 1.8 per cent to 1.5 per cent during the same period.
The composition of allocations for public investment in agriculture for 2006-07 is not yet available.
As per Economy Survey (2006-07), the public sector investment (at 1999-00 prices) in agriculture for 2005-06 stands at Rs 13,219 crore (Rs 132.19 billion) as compared to Rs 10,267 crore (Rs 102.67 billion) in 2004-05.