Because of increased cost of cultivation, private money lenders, use of chemical fertilizers, low produce prices, crop failure, debt.

Table India 4.1 : Growth Rate of GDP and Major Sectors (in%)

Source : Economic Survey of various years, Ministry of Finance, Government of India

Note : Data Pertaining to Gross Value Added (GVA).

From Table 4.1, it is clear that though the GDP growth rate is increasing over the years, it is not generating sufficient employment opportunities in the country. The growth rate in agriculture has been decelerating which is an alarming situation. Today, Indian farmers are facing a big challenge from international competition and reduction in the public investment in the agriculture sector. Subsidy on fertilisers is decreased leading to increase in the cost of production. Moreover, reduction in import duties on agricultural products have proved detrimental to agriculture in the country. Farmers are withdrawing their investment from agriculture causing a downfall in employment in agriculture.