Transforming India’s Agricultural Economy by 2047

GS 3 – AGRICULTURE

 

Context: India envisions a modernized and self-sufficient agricultural sector by 2047, positioning itself as a global leader in agribusiness.

Present Scenario of Indian Agriculture

• Workforce Engagement: Agriculture remains a primary livelihood source, employing nearly 45% of the nation’s workforce.
• Economic Share: Contributing approximately 15% to the national GDP, the sector plays a crucial role in economic stability.
• Land Use: With agricultural land covering 54.8% of India’s total land area and 180 million hectares under cultivation, India holds the distinction of having the largest arable land globally.
• Global Ranking: India leads in milk, pulses, and spice production, while being the second-largest producer of wheat, rice, sugarcane, cotton, tea, fruits, vegetables, and farmed fish.

Key Challenges in Agriculture

• Small Landholdings: Around 86% of farmers own plots smaller than two hectares, limiting large-scale farming and mechanization.
• Climate Variability: Erratic rainfall, rising temperatures, and extreme weather events affect productivity and income security.
• Water Crisis: Excessive reliance on groundwater, particularly in Punjab and Haryana, has led to depletion, while dependence on monsoons heightens drought risks.
• Market Barriers: Farmers struggle with market access, fair pricing, and exploitative intermediaries, affecting profitability.
• Post-Harvest Wastage: Inadequate storage and transportation infrastructure contribute to significant food loss.
• Financial Constraints: Small and marginal farmers often lack access to affordable loans and crop insurance, limiting investment in technology and modern inputs.
• Soil Depletion: Overuse of chemical fertilizers has degraded soil health and increased vulnerability to pests.

Roadmap for a Developed Agricultural Economy

1. Adoption of Advanced Technology
   • Artificial Intelligence (AI): Use AI for weather prediction, pest management, and precision farming. Develop AI tools in regional languages for small-scale farmers.
   • Robotics & Automation: Encourage cost-effective robotic solutions for small farms and establish AgTech innovation hubs.
   • Digital Twins: Collaborate with AgTech firms to test and implement digital twin technology for better farm modeling.
2. Sustainable Agricultural Practices
   • Regenerative Farming: Advocate for organic and zero-budget farming techniques to restore soil health.
   • Climate-Smart Strategies: Expand micro-irrigation, invest in climate-resilient seeds, and leverage AI for localized climate advisory services.
3. Development of Alternative Proteins
   • Strengthen collaborations to advance lab-grown protein production while ensuring affordability and scalability.
4. Blockchain for Transparency
   • Implement blockchain technology in the supply chain to improve price realization, particularly for export-oriented crops.
5. Infrastructure Development
   • Improve cold storage, transportation, rural connectivity, and irrigation facilities to reduce post-harvest losses.
   • Enhance rural electrification and digital marketplaces for better price discovery.
6. Empowering Farmers
   • Strengthen Farmer Producer Organizations (FPOs) to improve bargaining power.
   • Increase access to credit, insurance, and digital literacy programs to modernize farming techniques.

Government Initiatives Supporting the Vision

• Digital Agriculture Mission: Promotes technology-driven farming through Digital Public Infrastructure and data-driven crop estimation.
• Minimum Support Price (MSP): Ensures farmers receive at least 50% profit over the average cost of production, encouraging crop diversification.
• Namo Drone Didi Scheme: Supports drone use in agriculture for crop monitoring, land record digitization, and pesticide application.
• E-Marketplace Expansion: Strengthens e-NAM to facilitate transparent bidding and better market access for farmers.

By adopting these strategic reforms, India aims to transition its agricultural sector into a globally competitive, sustainable, and technologically advanced industry by 2047.