Performance of Crop Sector in Gujarat during High Growth Period: Some Explorations§

The share of agricultural sector in Gujarat’s net domestic product has declined to less than one-fifth, indicating that the state economy is witnessing a structural transformation. Post-liberalization, cropping pattern has favoured wheat, cotton, spices, fruits, vegetables, floriculture and medicinal plants. Despite a secular decline in the share of agricultural sector and sharp fluctuations in its output and income, the decade of 2000s could mark a very high growth phase. Economywide gross domestic product had shown a structural break in 2002-03, giving credence to the notion that agricultural sector has been the driving force behind acceleration of the overall economic growth. After 2000-01, unprecedented increase in physical output and monetary value of crops has been attained. Adoption of high-yielding varieties of food crops and Bt cotton have been the main factors behind the revolutionary growth. However, factors responsible for fluctuations in output of these crops need a careful attention. Technological advancement needs to encompass a wider range of crops as to moderate negative deviations in output, and calls for a scientific approach to sustain the high growth trajectory.