Agricultural sector, the mainstay of the economy, is also getting affected by the rapidly increasing population. Nearly 68% of total population is living in rural areas having agriculture as its main occupation. With rapidly growing population, the land-man ratio is disturbing.
Pressure of population on land is increasing but the supply of land is inelastic. Therefore, it is adding to unemployment and thus reducing per capita productivity further. As the number of landless workers is increasing, their wages are falling.
As a result, the use of improved techniques and other improvements on land are not taking place according to actual needs. Capital formation in agricultural sector is badly suffering and the economy, which as a whole, is bagged down to the minimum level.