SHARE OF AGRICULTURE ON EMPLOYMENT, INCOME AND TRADE

Abstract

Nepal is a country having diverse range of agricultural life. Agriculture is a main source of income and employment. This paper assesses the current scenario and the trend of share of agriculture on employment, income and trade in Nepal. Secondary data from various sources were used for study. Statistical techniques including descriptive statistics and trend analysis was used. Share of agriculture on employment and income is decreasing and import of agricultural commodities is drastically heavy than the export of such products. The proportion of population engaged in agriculture has shown a sharp decline from 82.33% in 1991 to 64.38% in 2019. Agriculture made up 48.80 percent of the gross domestic product (GDP), in 1990 where share has been gradually decreasing and was a mere 23.13 percent in 2020. In 2019/20, total merchandise exports and imports stood at Rs. 97.71 billion and Rs. 1196.80 billion respectively where trade deficit stood at Rs. 1099.09 billion which is 27.9 percent of GDP. Nepal is shifting from agriculture-driven economy to industrial as well as remittance driven economy. Formulation and implementation of appropriate agriculture related policy to enhance agriculture for boosting up Nepalese economy is recommended.