Further, there are various forward and backward linkages of agricultural sector with other sectors of the economy. In the past couple of decades, a rapid decline in the share of agriculture in GDP, however, has been witnessed without a commensurate decline in labour force dependent on agriculture.
Another sign of concern has been a deceleration in the growth of gross capital formation (GCF) in agriculture in real terms in the recent past. Moreover, GCF in agriculture has generally grown at a rate slower than the rate of growth in overall GCF over the last decade, except for a spurt between 2007–08 and 2008–09 (Chart 1).