Agriculture Orientation Index (AOI) is an index which was developed as part of the Goal 2 (Zero Hunger) of the 2030 Agenda for Sustainable Development in 2015.
- The Sustainable Development Goal (SDG) 2 emphasises an increase in investment in rural infrastructure, agricultural research and extension services, development of technology to enhance agricultural productivity and eradication of poverty in middle- and lower-income countries.
More about Agriculture Orientation Index (AOI)
- The AOI is calculated by dividing the agriculture share of government expenditure by the agriculture value added share of GDP.
- In other words, AOI measures the ratio between government spending towards the agricultural sector and the sector’s contribution to GDP.
Spending in agriculture in India
- The UN-Food and Agriculture Organization (FAO) report for 2001 to 2019 shows that, globally, India is among the top 10 countries in terms of government spending in agriculture, constituting a share of around 7.3 per cent of its total government expenditure.
- India lags behind several low-income countries such as Malawi (18%), Mali (12.4%), Bhutan (12%), Nepal (8%), as well as upper middle-income countries such as Guyana (10.3%) and China (9.6%).
India and AOI
- In India, AOI has shown an improvement since the mid-2000s.
- However, India’s AOI is one of the lowest, reflecting that the spending towards the agricultural sector is not commensurate with the sector’s contribution towards GDP.
(Source: TH)
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