Role of Agriculture in the Indian Economy: A Comprehensive Analysis

Role of Agriculture in Indian Economy

• Agriculture is the backbone of the Indian economy, contributing around 18% to the nation’s GDP and employing over 50% of the population.
• It serves as the primary livelihood source for millions, particularly in rural areas.
  Agriculture contributes significantly to the country’s exports, including rice, wheat, and spices.
• Government schemes like PM-KISAN, which provides direct financial support to farmers, and the National Agriculture Market (eNAM), which creates a unified market for agricultural produce, aim to uplift the sector.
• The Green Revolution was a landmark moment, increasing productivity through advanced methods and technology.However, the sector faces challenges, including fragmented land holdings, over-reliance on monsoon rains, lack of access to technology, and fluctuating market prices. Addressing these challenges is essential for sustainable growth and ensuring food security for the nation.

Details on Government Policies and Initiatives

• PM-KISAN provides ₹6,000 annually to farmers in three equal installments.
• Aims to support small and marginal farmers financially.
• National Agriculture Market (eNAM) is a digital trading platform connecting 1,000+ regulated wholesale markets.
• Promotes fair pricing and reduces exploitation by middlemen.
• Pradhan Mantri Fasal Bima Yojana (PMFBY) provides insurance coverage to farmers for crop loss due to natural calamities.
• Ensures farmers’ income stability in adverse conditions.

Challenges in Indian Agriculture

• Fragmented Land Holdings limit mechanization and economies of scale.
• Dependency on Monsoons makes nearly 60% of agricultural land vulnerable to erratic weather patterns.
• Limited Access to Technology means small farmers often lack access to modern tools, techniques, and high-quality seeds.
• Market Price Volatility creates inconsistent pricing for farmers’ produce due to supply-demand mismatches.
• Soil Degradation and Resource Scarcity, caused by overuse of chemical fertilizers, lead to deteriorating soil health.
• Scarcity of water in many regions exacerbates the problem.

Solutions to Strengthen Agriculture in India

• Promoting Sustainable Practices such as organic farming and reduced chemical fertilizer usage.
• Implement water-efficient methods like drip irrigation.
• Adopting Technology by providing subsidies for modern agricultural equipment.
• Expand digital literacy programs for farmers to access eNAM and weather forecasts.
• Enhancing Infrastructure by building more cold storage facilities to reduce post-harvest losses.
• Improve rural connectivity for better market access.

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Frequently Asked Questions

1. How much does agriculture contribute to India’s GDP?
   Agriculture contributes around 18% to the national GDP and employs over 50% of the population.
2.  What is PM-KISAN, and how does it benefit farmers?
   PM-KISAN provides ₹6,000 annually in direct financial support to farmers, aimed at aiding small and marginal landholders.
3. How does eNAM help farmers?
   eNAM is a digital platform that facilitates online trading of agricultural produce, ensuring better prices and reducing middlemen exploitation.
4. What are the major challenges Indian agriculture faces?
   Fragmented land holdings, monsoon dependency, price volatility, and limited access to technology are some of the significant challenges.
5. How can India overcome the challenges in agriculture?
   Promoting sustainable practices, adopting technology, enhancing infrastructure, and improving policy implementation can address the issues effectively.