Agriculture has been the backbone of the Indian economy for decades. Its share of contribution to GDP has been 15-20 per cent over the past twenty years. Agricultural exports crossed $50 billion in the Financial Year 2022, the highest-ever level rising 20 per cent from Financial Year 2021. India has the world’s largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices worldwide. The agricultural sector in India holds the record for the second-largest agricultural land. Over the years, agriculture in India has undergone significant transformation and several game changers have emerged in the Indian agriculture ecosystem that has contributed to the growth and development of the sector.
Game-changers in the Indian Agriculture Ecosystem Green Revolution
The Green Revolution began in the 1960s and was a significant turning point in the Indian agricultural ecosystem. It introduced high-yielding varieties of crops, modern irrigation systems, and the use of chemical fertilisers and pesticides. The Green Revolution dramatically increased agricultural productivity, making India self-sufficient in food production.
Micro Irrigation Systems
It has revolutionised the way farmers use water for irrigation. These systems deliver water directly to the roots of crops, reducing water wastage and increasing crop yield. Micro irrigation systems have played a significant role in drought-prone areas.
Precision Farming
It involves using sensors and other advanced equipment to manage crops. With the help of precision farming, farmers can optimise the use of resources such as water, fertiliser, and pesticides. It also helps reduce the environmental impact of agriculture and increases the yield of crops. Companies like Mahindra and Mahindra and John Deere are providing precision farming solutions to farmers in India.
Organic Farming
It has emerged as a game changer in the Indian agriculture ecosystem. Organic farming practices promote the use of natural fertilisers and pesticides, which are environmentally-friendly and reduce the health risks associated with chemical-based agriculture. Organic farming has also provided an opportunity for small farmers to enter the market and increase their income. Organic farming involves the use of natural resources and avoids the use of synthetic fertilisers and pesticides.
Contract Farming
It is a game changer for small farmers who lack the resources to invest in their land. Under this model, farmers sign contracts with agribusiness companies to grow crops, providing them with the necessary inputs and technical assistance. Contract farming guarantees a market for the farmers’ produce, enabling them to focus on farming while the company takes care of marketing and distribution. This helps reduce the risks farmers face and ensures a steady income. Companies like ITC and PepsiCo are actively promoting contract farming in India.
Krishi Vigyan Kendra
These are agricultural research and extension centres established by the Indian Council of Agricultural Research (ICAR). These centres provide farmers with technical support and training, enabling them to adopt modern farming practices. KVKs have played a vital role in disseminating information on new agricultural technologies and practices to farmers in remote areas.
Agri-Tech Startups
These startups are using technology to solve the problems farmers face and are revolutionising how agriculture is done in the country. For instance, startups like AgroStar, Ninjacart, and CropIn use technologies to provide farmers with information on crop management, weather forecasting, and soil health. They are also helping farmers sell their produce directly to consumers, thereby eliminating middlemen and increasing their income.
Government Initiatives
The Indian Government has launched several initiatives to promote and support agriculture in the country. The Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, and Soil Health Card Scheme are some of the initiatives that have been implemented to provide better facilities and infrastructure to farmers. These initiatives have not only helped farmers in reducing their risks but have also helped in increasing their income and productivity. Neem-coated urea is a very good scheme that has been initiated to regulate the use of urea, enhance its availability to crops, and reduce the cost of fertiliser application. The soil health card scheme was introduced in 2015 to assist State Governments to issue health cards to all the farmers in the country, which provides information to the farmers on nutrients available in the soil along with recommendations on proper doses. The national agriculture market (E-NAM) is a pan-India electronic trading network to connect existing APMC mandis to improve the price realisation to the farmers and improve the availability of every produce uniformly in the country.
In recent years, the country has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record US $ 50.2 billion
Pradhan Mantri Krishi Sinchai Yojana (PMKSY) has been formulated to extend irrigation to all fields and use of water more efficiently. The biggest game changer of all is the Pradhan Mantri Kisan Samman Nidhi Yojana. Under this, the GoI aims to pay Rs 6,000 per year to the farmers. This aid helps reduce the cash crunch of the farmers and the requirements of the farming community would be met with the launch of this scheme.
Robust Growth
India’s agriculture sector has been witnessing robust growth, with an average annual growth rate of 4.6 per cent over the last six years. This has enabled the agriculture and allied activities sector to contribute significantly towards the country’s overall growth, development and food security. Further, in recent years, the country has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record US $ 50.2 billion. Recently, in the Union Budget, Government announced that an ‘Agriculture Accelerator Fund’ would be set up to encourage Agri start-ups founded by young entrepreneurs in the rural area. Additionally, the Government also announced that the agricultural credit target would be increased to Rs 20 lakh crores with a focus on animal husbandry, dairy and fisheries.
Through these targeted initiatives, Government aims to increase farmers’ income further, focusing on boosting high-value crops and allied sub-sectors. Continued focus on providing support, building proper physical infrastructure, steps to build digital Agri infrastructure, boost to Agri-tech ecosystem can further enhance agriculture in India and increase the value-added from the sector. Due to these initiatives undertaken in the agriculture sector, the contribution of agriculture to GDP in the country is expected to increase from 20 per cent to 22 per cent.
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