Foreign Direct Investment (FDI) & Agriculture Sector in India Economics

Agriculture plays an important role in economic development of any nation including India. The contribution of agricultural sector to national Gross Domestic Product (GDP) has continued to decline over the years; while that of other sectors, particularly services, has increased. Presently, agriculture contributes 13.9 per cent of India’s Gross Domestic Product (GDP) yet; agriculture forms the backbone of the economy, as 52 per cent of India’s work force is still engaged in agriculture for its livelihood and is important for food security and inclusive growth. To improve agriculture productivity and streamline it with manufacturing and services sector, there is a strong need to adopt many measures, out of which, promote FDI inflow in agriculture sector in Indian economy. 100 per cent FDI is allowed in agriculture and allied service under controlled conditions. In the above regard, present paper is an attempt to understand the role of FDI in agricultural sector & in overall progress of the economy.