Prelims Bits » Agriculture Orientation Index

Agriculture Orientation Index

Why in News?

There is a dire need of an agriculture oriental index to align with Sustainable development Goals.


  • The Agriculture Orientation Index (AOI) for Government Expenditures is defined as the Agriculture share of Government Expenditure, divided by the Agriculture value added share of GDP, where Agriculture refers to the agriculture, forestry, fishing and hunting sector

  • The report is the joint efforts of The Food and Agriculture Organisation (FAO) of the United Nations (UN)

  • An Agriculture Orientation Index (AOI) greater than 1 reflects a higher orientation towards the agriculture sector, which receives a higher share of government spending relative to its contribution to economic value-added. An AOI less than 1 reflects a lower orientation to agriculture, while an AOI equal to 1 reflects neutrality in a government’s orientation to the agriculture sector

  • Agriculture Orientation Index (AOI) — 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

  • The AOI is calculated by dividing the agriculture share of government expenditure by the agriculture value added share of GDP. In other words, it measures the ratio between government spending towards the agricultural sector and the sector’s contribution to GDP