Abstract

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.

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