Shift in economic priorities

Shift in economic priorities

The economy has shown a shift from agriculture sector to industries and services.

For, the percentage contribution of agriculture and allied sectors in total state domestic product (GSDP) has declined from 57.9% in 1950-51 to 55.5% in 1967-68; 26.5% in 1990-91 and to 14.25% in 2013-14.

The share of industries and services sectors respectively has increased from 1.1 and 5.9% in 1950-51 to 5.6 and 12.4% in 1967-68; 9.4 and 19.8% in 1990-91 and 18.40 and 42.85% in 2013-14.

The declining share of agriculture does not, however, affect the importance of this sector in the state's economy.

For the state GDP growth is still determined by the trend in agriculture and horticulture production.

It is the major contributor to the total domestic product and hasoverall impact on other sectors via input linkages, employment and trade.

Due to lack of irrigation facilities the agricultural production to a large extent still depends on timely rainfall and weather conditions.

High priority has been accorded to this sector by the government.