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Agriculture sector provides livelihood support to about 42.3% of the population of India and has a share of 18.2 per cent in the country’s GDP at current prices. As a sector, it has been buoyant, which is made evident by the average annual growth rate of 4.18% at constant prices over the last five years. It, however, can't be denied that there are a host of difficult, entrenched issues, which have kept the sector from reaching the next level, where it can be among the economy's saviours.
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The Economic Survey 2023-24 argues how traditional development models saw economies transition from agriculture to industrialisation and then to value-added services, but currently, at a time when technological advancements and geopolitics are challenging this progression, trade protectionism, resource hoarding, overcapacity and dumping, onshoring production, and the rise of AI are limiting the opportunities for countries to drive growth through manufacturing and services.
This new situation has challenged policymakers to rethink conventional wisdom, the survey says. To turn the agricultural sector into a big solution, going back to traditional farming practices and reorienting policies could increase value addition in agriculture, boost farmers' incomes, and create opportunities for food processing and exports. Such a strategy can make the farming sector both appealing and productive for India's urban youth, the survey said.
