Agriculture is the mainstay of the Indian Economy. Agriculture and allied sectors contribute nearly 14.4 per cent of Gross Domestic Product (GDP) of India, while about 58.2 per cent of the population is dependent on agriculture for their livelihood. Agricultural output, however, is influenced by good or bad monsoon conditions as nearly 55 per cent of total cropped areas is dependent on rainfall Syllabus of UPSC GS paper 3 has economics in it. And students should be clear with the concepts of economics. It is also very essential for the students to keep a track of current affairs related to economics. To read more articles on Economics click here.


  • New Agricultural initiatives
  • Rashtriya Krishi Vikas Yojana
  • National food security Mission

In 1950-51, the contribution of agricultural sector to the national income was 61 per cent. In the rich countries of the world, agriculture is sufficiently developed but its contribution to the national income is very little. In America and England, agriculture contributes only 1 per cent of the national income. In underdeveloped countries, the share of agriculture in the national income is more as compared to the share of agriculture in developed countries


Kisan Credit Card: The Kisan Credit Card (KCC) Scheme was introduced in August, 1998 with major share of crop loans being routed through it. Banks were advised that the credit card should normally be valid for 3 years subject to an annual review. The scheme was revised in October, 2004. The revised scheme aims at providing adequate and timely credit for the comprehensive credit requirements of farmers under single window, with flexible and simplified procedure, adopting whole-farm approach including the short-term credit needs, term loan and a reasonable component for consumption needs, through Kisan Credit Card. The banks may extend the validity of KCC from 3 years to 5 years in case of sanctioning of term-loan facility under KCC. So far 1,004 crore KCC’s have been issued by the banking system in the country.


Rashtriya Krishi Vikas Yojana came into force in August 2007. An amount of ` 18,550 crore was spent on RKVY during the 11th Plan against the target of ` 25,000 crore. RKVY helped in achieving growth rate of 3.2 per cent in agricultural production during the Eleventh Plan period against the target of 4 per cent annual growth. The main objectives of this scheme are:

  • To increase public investment in
  • To prepare regional plans for agriculture depending upon climatic condition, natural resources, availability of technologies,
  • To focus attention on enhancing agricultural
  • To maximise the return to the
  • To provide flexibility and autonomy to states in the process of planning and executing agriculture-related schemes.


With a view to enhancing agricultural production of rice, wheat and pulses by 10 million tonnes, 8 million tonnes and 2 million tonnes respectively by the end of the Eleventh Plan, the Central Government had launched NFSM in the year 2007- 08. NFSM aims to increase production through area expansion and productivity enhancement. NFSM is presently implemented in 480 identified districts. The mission has focused on the districts with productivity below the state average. A new programme called Accelerated Pulses Production Programme (A3P) has been launched in 2010-11 under NFSM. Through technological upgradation, significant impact has been made under NFSM on increase of agricultural production. In 2010-11, increase in agricultural production in comparison to pre-NFSM targets was 24.28 million tonnes. This achievement is more than the target of 20 million tonnes of NFSM.

Economics is one of the most important part of UPSC syllabus. To read more articles on Economics click here