Decline in GVA in the Agriculture Sector During 2025-26

08-Jun-2026 08:28 PM

New Delhi. Government data indicates that the growth rate of Gross Value Added (GVA) in the agriculture and allied sectors is likely to hover around 3 percent; while this is slightly higher than the 2.4 percent projected in the second advance estimates, it lags significantly behind the 4.2 percent GVA growth rate recorded in the 2024-25 fiscal year.

In fact, this sharp decline in GVA is attributed to calculations based on current price levels of various products. Driven by high prices of various commodities and their derivatives, the GVA of the agriculture and allied sectors had surged to a peak of 9.2 percent in 2024-25, only to slide to just 1.4 percent in the 2025-26 fiscal year.

A significant drop in the prices of value-added products was recorded during this period. Although prices of certain items—such as edible oils and sugar—are now rising, the prices of many other products, including pulses, spices, fruits, and vegetables, have declined.

Wheat and wheat-based products have also become relatively cheaper. Food inflation was lower in 2025-26 compared to 2024-25, resulting in a subdued overall GVA growth rate. Bumper production of Rabi crops was another key factor contributing to this lower growth figure.