Chennai: Even when state finances experienced rough weather for more than a decade, the agricultural sector provided some saved grace, registering stable growth in the last 15 years, but nothing great to rejoice, white paper said in the financial sector of the country released by Finance State.
Minister of Finance Palanivel Thiaga Rajan on Monday.
He continued by saying that the industrial growth rate was dipped between 2011 and 2016 and then rose in the last five years.
The service sector, on the other hand, has continued to decline from 11.23% to 7.44% and then to 6.03%.
The pattern of sectoral growth reveals that overall, services and the secondary sector recorded a higher growth rate than the primary sector.
Between 2006-2007 and 2010-2011, the agricultural sector grew by 4.07% per year, while in the next five years it grew by 5.24%.
The growth rate increased to 5.86% in the last five years.
However, given that the primary sector continues to provide most of the work, unless the policy correction is introduced, TN’s growth will not be inclusive, he said.
The sharpest decline in the annual growth rate is in the industrial sector.
The average annual growth rate fell from 10.30% in 2006-11 to 5.49% in the 2011-16 period before accelerating to 8.17% in the next five years.
The service sector, as well as, was curved sharply from growth of 11.23% in the period 2006–11 to 7.44% in 2011-16 and further to 6.03% in the 2016-20 period.
The slowdown in the performance of the industrial sector and services in recent years is a concern field.
This inclined pattern of growth means that two larger economic sectors fail to shoot and grow fast enough.
It also implies that TN can lose land to other major countries except the trend quickly reversed.
The Tamil Nadu agricultural section in the state domestic product Gross (GSDP) was 23% in 1981-1993.
It fell to 11.87% in 2004-2005 and further to 7.76% in 2013-14.
But the work in this sector was reduced by only 10% – from 54% to 44% between 1981 and 2010.
Even today, 42% of TN workers were farmers or agricultural workers.
In rural areas, more than 58% of households depend on agriculture for livelihoods.
NSSO data surveys (2011-2012) said more than 20% of farmers have lived below the poverty line.
Between 2011 and 2013, the gross area was sown reduced 12.7%, the recent Nabard report said.
The lack of appropriate understanding of the agricultural and horticultural sectors and reluctance in the part of the government to see long-term solutions is the reason for farmers’ suffering, the feelings of experts.
It must first create infrastructure to store excess runoff to the sea.
The Tamil Nadu River, water experts estimate, throw more than 700TMCT water as runoff every year.
One TMCT water, at present, helps the state foster 2,000 hectares of land.