Agriculture for Growth and Job Creation

Context:
The potential of agriculture as a driver of economic growth and job creation in India requires deeper analysis.

Current Status of the Indian Agriculture Sector:

• Growth and Contribution:
  Indian agriculture has maintained an average growth rate of 4% over the past five years, contributing 18% to the nation’s GDP.
• Employment:
  The Periodic Labour Force Survey (PLFS) by MoSPI indicates that 45.76% of India’s workforce was engaged in agriculture and allied sectors in 2022-2023.
• Exports:
  Agricultural and processed food exports reached US$ 35.18 billion in 2023-24 (April-December), with key export products including marine items, rice, spices, buffalo meat, sugar, and processed foods.
• Global Rankings:
  India is the world’s top producer of milk, pulses, and jute, and ranks second in producing rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton.

Government Initiatives:

• PM-KISAN
• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Agri Exports Initiatives
• Digitisation in Agriculture
• Paramparagat Krishi Vikas Yojna (PKVY)

Challenges:

• Low Productivity:
  Limited access to modern agricultural machinery and equipment hampers productivity.
• Irrigation Challenges:
  Water scarcity and reliance on unpredictable monsoon rains create challenges, with only 52% of cultivated land having access to irrigation (NITI Aayog, 2022-23).
• Market Inefficiencies:
  The APMC system, intended to safeguard farmers, often leads to middlemen exploiting them, leaving farmers with only 15-20% of the retail price.
• Diversification Dilemma:
  Indian agriculture remains focused on staple crops like rice and wheat. Only 17% of arable land is allocated to horticultural crops (ICAR).
• Post-Harvest Losses:
  Poor storage and transportation infrastructure result in substantial post-harvest losses.

Strategies to Transform Agriculture into a Growth Engine:

• Ecological Sustainability:
  Enhancing water and soil health is crucial. Nearly half of India’s cropped area relies on groundwater, which is often over-extracted. Practices like rainwater harvesting and micro-irrigation can regenerate resources. For example, Gujarat’s efforts in rainwater harvesting and micro-irrigation led to 9.6% annual agricultural growth and increased productivity.
• Technological Advancements:
  Mobile phones and drones have improved agricultural efficiency and yields. For instance, mobile-based agricultural information increased yields by 4% and input adoption by 22%.
• Institutional Innovations:
  Encouraging cooperative group farming can boost production. Kerala’s Kudumbashree initiative has demonstrated success by increasing production and revenue for women’s groups.
• Diversification:
  Expanding into sectors like livestock, fisheries, and agro-processing offers additional growth and employment opportunities. The fisheries sector alone grew by 10% in 2022-23, creating 28 million jobs.