Chief Economic Advisor of India V. Ananth Nageswaran | Photo Credit: Reuters
Indian agriculture has performed well, but the sector needs “re-orientation” against the backdrop of some challenges such as the adverse effects of climate change, and rising input costs. Economic Survey for 2022-23 Introduced in Parliament on 31 January.
Other challenges are fragmented holdings, sub-optimal farm mechanization, low productivity, disguised unemployment, and rising input costs, among others.
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“Though Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain challenges…” it said.
Stating that the performance of the agriculture sector is critical for growth and employment in the country, the survey said that investment in the sector should be encouraged through an affordable, timely and inclusive approach to credit delivery.
It is noteworthy that more than 75% rural women workers Working in agriculture sector. This implies a need to enhance women’s skills and generate employment in agriculture-related sectors such as food processing.
“Here, self-help groups (SHGs) can play an important role in shaping the potential of rural women into concrete developmental outcomes of financial inclusion, livelihood diversification and skill development,” the survey said.
As per the survey, the agriculture sector has grown at an average annual growth rate of 4.6% during the last six years. It increased to 3% in 2021-22 as compared to 3.3% in 2020-21.
In recent years, India has also rapidly emerged as a net exporter of agricultural products. Agricultural exports to reach an all-time high of $50.2 billion during 2021-22.
The survey said this increase is partly attributed to good monsoon years and partly to various reforms undertaken by the government to increase agricultural productivity.
Policies such as soil health cards, micro-irrigation funds, and organic and natural farming have helped farmers make optimum use of resources and reduce the cost of cultivation. Promotion of Farmer Producer Organizations (FPOs) and extension platform of National Agriculture Market (e-NAM) has empowered farmers, increased their resources, and enabled them to get good returns.
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The Agri Infrastructure Fund (AIF) has supported the creation of various agricultural infrastructure. Kisan Rail specifically caters to the movement of perishable agro-horticulture commodities. The Cluster Development Program (CDP) has promoted integrated and market based development for horticulture clusters.
Farmers are also being supported to create a startup ecosystem in agriculture and allied sectors.
The survey states that all these measures are directed towards supporting the growth in agricultural productivity and sustaining its contribution to overall economic growth in the medium term.