Introduction:
Agriculture stands as the foundation of the Indian economy, witnessing a consistent decline in its contribution to the GDP from about 52% in FY1951 to approximately 18.3% in FY 2022-23. However, the workforce engaged in agriculture has surged from 77.2 million to 148 million between 1950 and 2023.
Body:
Reasons for the declining share of agriculture in GDP:
- Growth Disparities: In FY 2022-23, while agriculture grew at 3.4%, manufacturing and services grew at 1.1% and -8.4%, respectively, highlighting disparities in sectoral growth.
- Stagnant Agricultural Productivity: Despite technological advancements, the yield per hectare has not increased significantly, limiting the sector’s contribution to GDP.
- Traditional Agricultural Practices: The persistence of traditional practices, such as subsistence farming, limits scalability and modernization, impacting economic contribution.
- Land Fragmentation: Increasing population leads to fragmented landholdings, challenging farmers to adopt efficient practices, and affecting productivity.
- Dependence on Monsoon: Irregular monsoons and climate change can lead to droughts or floods, adversely affecting crop production and contributing to sector volatility.
- Limited Mechanization: The lack of modern farming equipment hinders efficiency, making it challenging for farmers to increase productivity and income.
Critical Appraisal of Employment in Agriculture:
- Disguised Unemployment: Small land holdings lead to over-manning, disguised unemployment, and reduced labor productivity.
- Low Productivity: Poor per capita output necessitates a higher labor force for fieldwork.
- Limited Opportunities in Non-Farm Sectors: Poor farmers with low skill sets face limited opportunities in non-farm sectors, perpetuating the cycle of poverty.
- Compulsion for Farm Employment: Lack of skills makes rural populations opt for agriculture due to a lack of readiness for employment in other industries.
Challenges:
- Limited Technological Adoption: Slow adoption of modern technologies and mechanization hampers efficiency, reduces productivity, and limits income potential.
- Small Land Holdings: The predominance of small and fragmented land holdings limits economies of scale, leading to lower overall agricultural output and income.
- Dependence on Monsoons: High dependence on monsoons for irrigation makes the sector vulnerable to erratic rainfall patterns, affecting crop yields and income stability.
- Inadequate Market Access: Limited access to organized markets and price volatility impact farmers’ income.
- Credit Accessibility Issues: Limited access to credit for small and marginal farmers hinders investment in modern farming practices, reducing productivity.
- Climate Change Risks: The increasing frequency of extreme weather events poses risks to crop production, affecting income and livelihoods.
- Policy Implementation Gaps: Ineffective policy execution can hinder intended benefits for farmers, impacting income levels.
- Rural Infrastructure Deficiencies: Inadequate rural infrastructure hampers timely and cost-effective transportation of agricultural produce, affecting market access and income.
Measures:
- Irrigation Investment: Government initiatives like PMKSY and Atal Bhujal Yojana focus on increasing irrigation investment for improved water management.
- Crop Diversification Promotion: PMFBY and RKVY encourage crop diversification, promoting sustainable practices.
- Infrastructure Enhancement: PMGSY enhances rural connectivity, while e-NAM creates a national market, improving farmers’ access and facilitating better prices.
- Subsidies for Inputs: The government provides subsidies for seeds, fertilizers, and irrigation equipment, reducing cultivation costs. Crop insurance subsidies offer financial support in case of losses.
- Technology Adoption: PM-KISAN supports small farmers, enabling technology investment for improved productivity. KCC scheme provides credit access for technology and inputs investment.
Conclusion:
The complex narrative of declining income in agriculture amidst its pivotal role in employment necessitates holistic policies. Striking a balance between economic growth and safeguarding livelihoods is imperative. Sustainable measures are essential to navigate challenges and harness the enduring significance of agriculture in India’s socio-economic fabric.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
