Agriculture Orientation Index – UPSC Prelims

What is Agriculture Orientation Index (AOI)?
  • Agriculture Orientation Index (AOI) is an index that was developed as part of Goal 2 (Zero Hunger) of the 2030 Agenda for Sustainable Development in 2015.
  • The AOI is calculated by dividing the agriculture share of government expenditure by the agriculture value-added share of GDP.
  • It measures the ratio between government spending towards the agricultural sector and the sector’s contribution to GDP.
Agriculture Orientation Index (AOI) of India: 
  • India’s index is one of the lowest, reflecting that the spending towards the agricultural sector is not commensurate with the sector’s contribution towards GDP.
  • Although the AOI has shown an improvement since the mid-2000s, India’s AOI is one of the lowest in Asia.
  • India holds only the 38th rank in the world, despite being an agrarian economy wherein a huge population is dependent on the agricultural sector for its livelihood.