Agriculture can be an engine for growth

It has often been said that agriculture is one of the most potent tools for growth, especially for a country like India where a significant section of the population depends on it. From appropriate methods in farming, application of new technologies, and proper market facilities, agriculture can not only increase the production of food but also increase farmers’ earnings. All these can result in the creation of employment opportunities, improved standards of living, and; in the process, economic growth. But it doesn’t need much more support and investment to develop agriculture as the key to growth, and to aid millions of people out of poverty to create a better economy.

Tags: GS – 3, Economy-Agriculture Sector- Direct & Indirect Farm Subsidies– Buffer Stocks & Food Security- Agricultural Marketing

Prelims: Indian agriculture sector, (PM-KISAN), (PMFBY), (PMKSY), (e-NAM), National Mission on Sustainable Agriculture, (PKVY), Digital Agriculture Mission, (UFSP), (NeGP-A), (MOVCDNER)

Mains: Current Status of the Indian Agriculture Sector, Issues Related to Indian Agriculture Sector.

Table of Contents

Context:

Agriculture currently employs 46% of the workforce and contributes 18% to GDP.To transform agriculture into a key driver of economic growth, it is crucial to address ecological, technological, and institutional barriers.
This involves replenishing water resources, increasing irrigation coverage, diversifying crops, and adopting advanced techniques like micro-irrigation and climate-resilient farming.
By implementing changes, Indian agriculture can become more technologically advanced, sustainable, and economically viable, attracting educated youth and contributing to national growth.

Current Status of the Indian Agriculture Sector:

Economic Contribution: Agriculture and allied sectors contributed 18.8% to India’s Gross Value Added (GVA) in 2021-22. The sector demonstrated resilience during the pandemic, growing by 3.9% in 2021-22, compared to 3.6% in 2020-21.
Employment: Agriculture employs around 42% of India’s workforce, but its share has been steadily declining from 81% in 1983.
Production: India’s foodgrains production reached a record 315.7 million tonnes in 2021-22 despite climate change challenges. (Economic Survey 2022-23)
Exports: Agricultural exports saw a 19.92% growth in 2021-22, totaling USD 50.21 billion. Key exports include rice, wheat, cotton, and spices.
Organic Farming: The total area under organic certification (registered under the National Programme for Organic Production) is 7.3 million hectares as of 2023-24.

Recent Technological Developments in Indian Agriculture:

Drone Technology: In 2021, the government approved subsidies of up to 100% for the purchase of agriculture drones by farm machinery training institutes. The Namo Drone Didi scheme aims to provide drones to 15,000 selected women Self-Help Groups (SHGs) between 2023-24 and 2025-26.
Satellite Imaging and Remote Sensing: ISRO’s RISAT-1A satellite, launched in 2022, supports agricultural assessment and improvement through advanced satellite imaging and remote sensing.
Happy Seeder Technology: This technology, designed to address stubble burning, allows wheat sowing without removing paddy straw, thus reducing air pollution and enhancing soil health.
PUSA Decomposer: Developed by the Indian Agricultural Research Institute (IARI), this microbial solution decomposes crop residues quickly when sprayed on stubble.
Nano Urea: Introduced by IFFCO in 2021, Nano Urea is a liquid fertiliser containing nanoscale nitrogen particles that improve nutrient use efficiency while reducing environmental pollution.

Why is Indian Agriculture Underperforming Despite Employing the Majority?

Fragmented Land Holdings: India’s agricultural land is highly fragmented, with 86.1% of farmers owning less than 2 hectares. This fragmentation limits mechanisation, credit access, and the adoption of modern techniques, reducing productivity.
Irrigation Challenges in a Changing Climate: India relies heavily on monsoons, with only 52% of cultivated land irrigated. Climate change further reduces agricultural incomes by 15-18%, exemplified by the recent heat waves that damaged crops.
Technological Lag: Despite the Green Revolution’s success, India struggles with modern innovations like precision farming, drones, and AI, leading to lower yields compared to global standards.
Market Inefficiencies: The APMC system often exploits farmers, with them receiving only 15-20% of retail prices. Although e-NAM aims to unify markets, it still faces adoption challenges.
Credit Crunch: Limited formal credit access forces farmers to rely on high-interest informal loans, leading to debt traps. Over 50% of agricultural households are in debt, increasing poverty and suicides.
Policy Paralysis: Subsidies distort market dynamics, while the MSP system leads to overproduction of certain crops, affecting sustainability and incomes.
Post-Harvest Losses: India suffers from inadequate storage and transportation, losing ₹92,651 crore annually in post-harvest losses. Cold storage can only hold 11% of the total produce.
Knowledge Deficit: A lack of formal training limits the adoption of modern practices. Programs like PMKVY have made efforts, but their impact remains small in agriculture.
Diversification Dilemma: Indian agriculture remains focused on staples like rice and wheat, limiting income potential. Despite the push for millets, diversification into high-value crops remains a challenge.
Gender Disparity: Women make up 42% of the agricultural workforce but own only 14% of land. This limits their access to credit and resources, although initiatives like Mahila Kisan Sashaktikaran Pariyojana aim to address this imbalance.

Key Case Studies Across the Globe:

United Kingdom – GrowUp Farms:
- GrowUp Farms pioneers vertical farming, using controlled environments to produce fresh crops year-round.
- This method reduces water usage and land dependence, offering a sustainable alternative to traditional farming.
The Netherlands – Rijk Zwaan:
- Rijk Zwaan leads in advanced greenhouse farming, incorporating climate control and LED lighting to optimise vegetable production.
- The Dutch government promotes circular agriculture, using biogas energy and recycled materials to enhance sustainability.
China – Zhongguancun Science Park (Z-Park):
- Z-Park in Beijing fosters innovation, particularly in bio-medicine and agri-tech, developing modern solutions for agricultural challenges through technological advancements and research.

Recent Government Initiatives in Indian Agriculture with Data Facts

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Provides ₹6,000 annually to small and marginal farmers. As of March 2023, over ₹2.5 lakh crore has been disbursed to more than 12 crore farmers.
Pradhan Mantri Fasal Bima Yojana (PMFBY): Covers over 5 crore farmers and provides insurance against crop losses due to natural calamities. The scheme has seen a premium collection of approximately ₹22,000 crore with claims exceeding ₹25,000 crore.
Soil Health Card Scheme: Issued around 31 crore soil health cards since its launch in 2015, offering farmers specific advice on soil health and nutrient management.
Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Aims to improve irrigation infrastructure with a target of achieving ‘Har Khet Ko Pani’ (water to every field). As of 2022-23, over 68 lakh hectares of land have been covered under irrigation schemes.
e-National Agriculture Market (e-NAM): Launched in 2016, it connects over 1,000 mandis across 18 states. By February 2024, approximately 1.77 crore farmers and 1.29 lakh traders were registered on the platform.
National Mission on Sustainable Agriculture: Promotes sustainable practices and aims to improve soil health, enhance water use efficiency, and increase crop productivity. The mission supports various initiatives including organic farming and climate-resilient crops.
Paramparagat Krishi Vikas Yojana (PKVY): Supports organic farming through subsidies for organic inputs and certification. The scheme covers over 2 lakh hectares of land as of 2022.
Digital Agriculture Mission: Aims to promote digital solutions in agriculture, including precision farming and data-driven decision-making. The mission focuses on integrating technologies like drones, AI, and IoT into farming practices.
Unified Farmer Service Platform (UFSP): Aims to consolidate various farmer services into a single digital platform, enhancing accessibility and efficiency. It integrates services like crop insurance, market linkages, and weather forecasting.
National e-Governance Plan in Agriculture (NeGP-A): Enhances agricultural governance through digital tools and services. The plan focuses on improving the efficiency of agricultural administration and providing farmers with timely information.
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER): Develops the organic farming sector in the North East. As of 2023, the mission supports organic farming practices on approximately 1.5 lakh hectares and aims to enhance market linkages for organic produce.

Measures to Enhance Agricultural Productivity:

Precision Agriculture: Utilise GPS, IoT sensors, and data analytics to optimise resource use. Pilot projects, like those in Maharashtra, have shown increased yields and reduced water use. Nationwide adoption could save billions of litres of water and boost productivity.
Crop Diversification: Encourage farmers to grow a variety of crops to boost income and soil health. Initiatives like the push for millets and successful programs in Odisha highlight the benefits of diversification in improving farmer incomes and nutritional security.
Farmer Producer Organizations (FPOs): Strengthen FPOs to achieve economies of scale. Models like Sahyadri Farmers Producer Company, which increased incomes by 25-30%, can be replicated across India to enhance productivity and farmer earnings.
Climate-Smart Agriculture: Adopt practices like drought-resistant crops and water conservation. New varieties like Swarna-Sub1 and the release of 109 crop varieties by the Prime Minister demonstrate progress in improving yield and resilience.
Agri-Tech Startups: Support agri-tech startups that drive innovation, such as DeHaat. Creating an ecosystem with incubation centres and funding can accelerate technology adoption in agriculture.
Minimising Waste: Invest in post-harvest infrastructure, including cold storage and processing units. Projects like the mega food park in Rayagada, Odisha, have helped reduce post-harvest losses and can be expanded nationwide to address the ₹92,651 crore annual losses.
Agricultural Education and Extension: Improve education and extension services with initiatives like PRAGATI. Enhancing these services and modernising agricultural universities can bridge knowledge gaps and create a skilled farming workforce.

Conclusion

Transforming Indian agriculture requires precision farming, crop diversification, and post-harvest infrastructure improvements. Strengthening FPOs and leveraging agri-tech advancements will enhance productivity and sustainability, driving economic growth in the sector.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims:

Q:1 In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (2021)

The ‘Climate-Smart Village’ approach in India is a part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research programme.
The project of CCAFS is carried out under Consultative Group on International Agricultural Research (CGIAR) headquartered in France.
The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centres.

Which of the statements given above are correct?

1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3

Ans: (d)

Q:2 Consider the following pairs: (2014)

Programme/Project Ministry

Drought-Prone Area Programme Ministry of Agriculture
Desert Development Programme Ministry of Environment and Forests
NWDP for Rainfed Areas Ministry of Rural Development

Which of the above pairs is/are correctly matched?

1 and 2 only
3 only
1, 2 and 3
None

Ans: (d)

Q:3 In India, which of the following can be considered as public investment in agriculture? (2020)

Fixing Minimum Support Price for agricultural produce of all crops
Computerization of Primary Agricultural Credit Societies
Social Capital development
Free electricity supply to farmers
Waiver of agricultural loans by the banking system
Setting up of cold storage facilities by the governments

Select the correct answer using the code given below:

1, 2 and 5 only
1, 3, 4 and 5 only
2, 3 and 6 only
1, 2, 3, 4, 5 and 6

Ans: (c)

Mains:

Q;1 Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)

Q:2 Explain various types of revolutions, took place in Agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (2017)

Source: IE

FAQs

Q: In what way could agriculture help in the growth of economy?

Answer: Agriculture can help the process of economic growth directly through offering employment opportunities and increasing the incomes of farmers in rural areas and indirectly by offering raw materials such as crops which would be used in industries such as food processing industries. When farmers increase their incomes they subsequently increase their expenditures which in the long run enhances the economic growth.

Q: How does technology work with agriculture-led growth?

Answer: Technology is also used in the production process as it improves the yields, and the management of water and reduces wastage. Technological advancements such as modem irrigation, better seeds, and digital platforms for farmers increase yields, thus increasing the profitability of agriculture.

Q: How does agriculture help to contribute towards exports and national income?

Answer: Agriculture does this by supplying products that are exported to destinations such as spices, tea, cotton, and grains among others. It opens an avenue for obtaining foreign exchange earnings since agriculture is well-known for exporting products that have a great market in the global market.

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