Agricultural Sector and Growth Rates of NNP, 1950-51 to 1975-76

The paper focuses on the rates of growth of total net national product (NNP) and NNP originating from the agricultural sector vis-à-vis the non-agricultural sector. It is based on time series of NNP at 1960-61 prices for the period from 1950-51 to 1975-76. Despite the significant changes in the relative importance of NNP originating from the agricultural and non-agricultural sectors in favor of the letter, and more than twice as much growth rate of the latter as compared to the former, the annual rates of growth in NNP were far more closely associated with rates of growth in NNP originating from the agricultural sector than rates of growth in NNP originating from the agricultural sector than rates of growth in NNP originating from the non agricultural sector. The close association between growth rates of total NNP and NNP originating from the agricultural sector holds good not only for the entire 25 year period but also for the period from 1962-63, or for that matter from 1967-68. In fact, the degree of association between these growth rates have increased while that between growth rates of total NNP and NNP originating from the non-agricultural sector has decreased after 1967-68.