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The history of Agriculture in India dates back to Indus Valley Civilization.[1] India ranks second worldwide in farm outputs. As per 2018, agriculture employed more than 50% of the Indian work force and contributed 17–18% to country's GDP.[2]
In 2016, agriculture and allied sectors like animal husbandry, forestry and fisheries accounted for 15.4% of the GDP (gross domestic product) with about 41.49% of the workforce in 2020.[3][4][5][6] India ranks first in the world with highest net cropped area followed by US and China.[7] The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.
The total agriculture commodities export was US $ 3.50 billion in March - June 2020. India exported $38 billion worth of agricultur
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privileged to deliver the Presidential address in the 102nd annual
conference of Indian Economic Association. I thank the office bearers and
members of the Association for giving me this honour.
I have chosen to speak on “Agriculture” which has remained integral part
of my whole life from the childhood till date. I have spent 36 years of my
professional career in studying and writing on various aspects of agricultural
economy of India. Like many of you, born during 1950s, I am witness to
transition of agriculture which helped India to overcome great humiliation
of food aid during 1960s and turned the country from severe food shortage
to a food surplus nation. The country also experienced agriculture led socio
economic transformation in many parts.
Role of agriculture in growth of Indian economy and overall development
hardly needs any elaboration. However, this role needs to be re-oriented in
the light of changing environment and requirements and to meet the new
challenges, and, also to harness new opportunities. This will require a shift in
our approach and thinking towards agriculture from “pushing for incremental
change” to “transformational change”. Further, agriculture is at the nexus
of three of the greatest challenges of the 21st century – sustaining food and
nutrition security, adaptation and mitigation of climate change, and sustainable
use of critical resources such as water, energy and land. Agriculture is also
acquiring renewed importance for gainful employment due to failure of
manufacturing sector to pull labour out of agriculture and to keep pace with the
growth in workforce.
1. Member, NITI Aayog.
Explanation:
India’s achievements in agriculture sector, though impressive in some
areas and states, have remained lower than the potential. The main reason for
this is the complacence of our leaders, particularly research leaders, with our
achievements. We generally compare our contemporary food situation with
the situation of food scarcity of mid 1960s and draw satisfaction from the fact
that now we are not facing food scarcity. Our mindset is fixed in comparing
agriculture of 2000s or recent years with agriculture of 1965-67 rather than
comparing agriculture achievements with the achievements of India’s other
sectors and other nations. What has been achieved in agriculture is not
compared with what is achieved in space, IT, telecom, services, automobiles,
medical science, transport etc. Between 1965-67 and 2000s, we are much more
different in all sectors and spheres of life than in agriculture but we do not
assess achievement of agriculture against the challenging yardsticks. Surely,
agricultural achievements are big compared to mid 1960s but they look dwarf
compared to other yardsticks.
The present government has set vision for New India that involves
“Sabka Saath Sabka Vikas”. Transformation of agriculture sector is crucial for
achieving this vision as 44.2 per cent workforce in the country is employed
in agriculture (NSO 2019) and thus depend on agriculture for their livelihood
(NSO 2019). There is large gap between income of agriculture workers
and non agriculture workers (Chand et. al. 2015; Chand 2019). Poverty and
undernutrition in the country are concentrated among agricultural labour and
small and marginal farmers. There is lot of concern relating to rural distress. If
current trends in agriculture are not changed there will be little improvement
in reducing income gap between agriculture and non agriculture income and
alleviating rural distress.
It has been empirically demonstrated that agriculture growth is significantly
beneficial for reducing poverty and increasing per capita income (Virmani
2008). Beside inclusive growth, agriculture matters for health and nutrition,
sustainability, climate change and quality of life in the country. All these factors
underscore the need for a new vision for agriculture as we move forward in the
21st century. Some aspects of the new vision for agriculture are discussed below
by grouping these under following heads:
1. Growth to efficiency
2. Employment Generation
3. Food Security to Nutrition and Health
4. Shortage Management to Surplus Management
VOLUME 15 • NUMBER 4
Transforming Agriculture for Challenges of 21 3 st Century
5. Input Intensive to Knowledge Intensive Agriculture
6. Climate Change and Sustainability
7. Production and Producers
8. Policy Interventions, Regulations and Reforms
1. Growth to Efficiency
Since1970-71, agricultural output and value added in agriculture in India
moved on a growth trajectory of around 2.8 per cent in most of the period. The
growth rate moved up and down depending upon the increase/decrease in real
prices of agriculture commodities. This can be seen from Fig. 1 which presents
movement of terms of trade for agriculture sector and Table 1 which shows
changes in terms of trade (ToT) for agriculture during different phases of ToT
and rate of growth in agriculture in these phases.