Role of agriculture in Indian economy

 

Priyam Mandal
MBA-Agribusiness Department
3rd semester
Sam Higginbottom (India) University of agriculture technology & sciences

“Agriculture is the backbone of Indian economy”- M.K.Gandhi

Introduction

Nehru, the first PM of India advocated that “everything, except agriculture can wait “. It is of no surprise that farmers and farming activity were given sacred status in Indian civilization where Goddesses Annapurna is the goddesses of food and nourishment in Hinduism. In modern times agriculture of India boasts of a series of achievements – largest producer of milk ;second largest producer of rice, wheat, fruits ,and vegetables, 5th largest producer of poultry.However, it also continues to suffer from problems of malnutrition , farmer distress, farmers suicide ,post harvest losses, challenges of climate change etc. Thus ,while agriculture in India may have come a long way, it continues to face series of challenges.

Agriculture in India

As mentioned earlier, Agriculture in India plays a very significant role in the growth of the country’s economy. As per data, more than 70% of rural households depend on agriculture for their livelihood. India stands at the 9th rank concerning global agricultural exports and 2nd in production.
Agriculture in India is the largest industry, contributing to the country’s capital formation. The responsibility of monitoring and assisting growth in the agriculture sector has been given to the Department of Agriculture and Cooperation under the Ministry of Agriculture.

Agriculture Sector in India

Agriculture in India is counted as the primary sector. The Indian agriculture sector has gradually increased production from 87 USD bn to 459 USD bn, which indicates a 12% annual growth. We rank second in the matter of agricultural production.

India is the largest producer of potatoes, ginger, okra, onions, brinjal, etc., out of all vegetables.
India is also the largest producer of bananas, coconut, mango, spices, cashew, papaya, pulses, milk, and jute.
India is the biggest cotton exporter in the world.
Animal Husbandry also forms an important part of the agriculture sector in India. It accounts for almost 32% of the output.

Role of Agriculture in the Indian Economy

The Indian economy depends on agriculture and, therefore, can be called an Agro-Economy. It plays a crucial role in the economic growth and development of the country by contributing to the Gross Domestic Product.
Agriculture in India plays an important role in international trade, import, and export activities.
The Indian agriculture sector can also be termed the largest employment sector in the country. Around 54.6% of the total Indian population is employed in agriculture as compared to other nations where only about 2-6% of the population is employed.
Agriculture is the only source of food, considering India’s huge population.
It also acts as a supplier of raw materials for various industries.

Potential of Agriculture in India

Indian agricultural production increased from 253.16 million tons to 280 million tons (food grains). It stood at 3.6% annually, sustained by developing infrastructure, etc. A large population creates demand for high productivity. Also, rising urban and rural income increases the quality-based demand.
External demand is also increasing due to new markets and strategic alliances. India is among the 15 leading exporting countries of agricultural products. This grew by 16.45% over the last decade to reach approx. 38 US $ in 2018.

As the urban population is increasing, with changing lifestyles, the sector has also been diversifying from grains towards pulses, fruits, vegetables, and livestock products. This helps in increasing the value addition of the produces and raw materials and development of food processing industries.
Opportunities in the sector are increasing. Scientific inventions in biotechnology can be seen in developing GM Crops, hybrid seeds, and fertilizers.

Promising storage capacities, infrastructure development like cold storage, logistics, etc.
Competitive advantage due to the high ratio of agricultural land (157 Million hectares), the leading producer of spices, Jutes, pulses, and the second-largest producer of wheat, fruits, paddy and vegetables.
Increasing policy support and subsidies from the government.

However, it is plagued by various paradoxes and problems hampering the desired growth, and the consequences are increasingly harmful.

Problems of Indian Agriculture

India is well-known for its agriculture, producing the most pulses, milk, and spices. In India, approximately 70% of the population lives in rural areas. The majority of farmers devote their entire lives to farming, making agriculture the primary source of income for two-thirds of all families.

Recently, farmers protested against three farm bills as they feared they would lead to the corporatization of agriculture. However, several other problems faced by Indian farmers were also highlighted during this protest. Some of the main problems of agriculture in India have been listed below.

Irrigation: A major challenge that Indian farmers face is the unpredictability of rainfall in India. Their dependency on rain affects their ability to produce crops consistently. In some states, improper wateruse and waste have resulted in a drop in groundwater levels. In agricultural lands, water resources and irrigation have become a problem. Despite the fact that irrigation capital expenses are increased to 3.5 times for major irrigation projects and 2.5 times for minor irrigation projects, there are still gaps in providing irrigation facilities to farmers with small lands.

Irregular Land Ownership: Land ownership is another issue in agriculture. The majority of agricultural land in India is distributed unequally, affecting land ownership. This leads to poor economic advantages from large-scale farming.

Poor infrastructure and facilities: The biggest challenge farmers face today is the loss incurred at use and waste have resulted in a drop in groundwater levels. In agricultural lands, water resources and irrigation have become a problem. Despite the fact that irrigation capital expenses are increased to 3.5 times for major irrigation projects and 2.5 times for minor irrigation projects, there are still gaps in providing irrigation facilities to farmers with small lands.

Irregular Land Ownership: Land ownership is another issue in agriculture. The majority of agricultural land in India is distributed unequally, affecting land ownership. This leads to poor economic advantages from large-scale farming.

Initiatives in the Field of Agriculture

Looking at the magnitude of problems and issues cropping up in India’s agriculture field, the government has stepped up and tried to put forth some measures to tackle the issues.
Pradhan Mantri Krishi Sinchayi Yojana – The scheme advertises the idea of ‘Per Drop More Crop’. It was introduced with the idea of reducing the wastage of water & supporting the idea of ‘precision irrigation.
Soil Health Card – The idea of a soil health card was generated to provide genuine information on nutrients required by particular crops.
Availability of Fertilizers – Neem Coated Urea was introduced by the government.
Cold Storage and Food Processing – This method has been introduced to increase the life span of agricultural products.
Organic Farming is the new trend that has amped up recently.

Government Schemes for Agriculture in India
The government has introduced various schemes to adopt sustainable methods and increase agriculture productivity in India. The following schemes have put forth various innovative measures to increase the amount of agricultural produce while maintaining quality.
Pradhan Mantri Krishi Sinchai Yojana
National Agriculture Market
Paramparagat Krishi Vikas Yojana
Pradhan Manthri Fasal Bima Yojana
Paramparagat Krishi Vikas Yojana

Conclusion

Agriculture sector in india is experiencing structural changes which are opening a new challenges and opportunities. The government has initiated reforms in the field of agriculture marketing giving a big push to the use of technology in agriculture. However the challenges in agriculture sector cannot be handled by government alone. There is a need to involve co-operatives,civil society organisation, academia and society as a whole for reforming agriculture. While infrastructure support like land, irrigation,seed etc are necessary,there is also a need for cultural shift, need for viewing agriculture in a positive light,need for perception change. In this context, our past provides us with the guiding light where land was used as a gifted to the people with intellectual prowess, had a sacred status. Or as famous agriculture scientist MS swaminathan has said – ” if agriculture fails, everything else will fail”. The choice is ours! #

News is being sent by BTC News (Bangladesh) Special (India) correspondent. Rajasree Banerjee. #