A predominantly agriculture-based Indian economy, growing at a steady rate of 7% over the last decade, with a 2:1 male-to-female ratio, employs 54.6% of the country’s workforce (Census 2011). In 2023-24, 17.7% of GVA (Gross Agricultural Value) at current prices was added to the economy by farming activities. Over the last six years, from 2018-19, agriculture and allied activities, on average, contributed 18.5% of GVA at current prices to the Indian economy. Currently, about 59% of India’s land is used for agriculture and related activities, with 42% of the total geographical area being the net sown area. However, only a little over 60% of the cultivated land had irrigation facilities in 2012-13, which decreased to approximately 56% in 2023-24.
From 2002-03 to 2022-23, despite numerous challenges, farm household income in India has grown progressively with a compound annual growth rate of 5.4%. During this period, the average monthly household income from agricultural activities increased fivefold, from Rs. 2115 in 2002-03 to Rs. 10,218 in 2022-23. Interestingly, the average monthly income from farming nearly doubled since 2012-13, rising from Rs. 6291 to Rs. 10,218 in 2022-23. However, profitability from agricultural activities still lags in comparison to other similar countries. A 2013-14 survey by the Agriculture Technology Management Agency found that over 50% of households earned below the poverty line from farming activities, and 52% of Indian households faced debt in 2012-13. While earnings from agriculture in Jammu and Kashmir have slightly outperformed the national average in the recent five years (only 33% of households earn below the poverty line), the CAGR for the union territory during this period is at an alarming low of -5.1%.
With a vision of doubling the farmers’ income in India by 2022, the Honourable Prime Minister of India, in April 2016, set the following aims and objectives, and the government subsequently planned to implement measures such as:
- Increase in crop production.
- Growth in livestock output.
- Reduction in production costs.
- Enhancement of cropping intensity.
- Diversification into high-value agriculture.
- Ensuring remunerative prices for farmers’ produce.
- Facilitating the shift of surplus manpower from farms to non-farm sectors.
These initiatives were aligned with budgetary allocations to the Ministry of Agriculture from the 2016-17 Budget, by increasing the budget from Rs. 21,933.50 crores in 2013-14 to Rs. 1,22,528.77 crores in 2024-25. A roadmap has been prepared to realise these goals in a staggered manner, involving policy reforms, provision of MSP, welfare schemes, agricultural infrastructure upgradation, and technological integration. Among the schemes introduced are: Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY), Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather-Based Crop Insurance Scheme (RWBCIS), Modified Interest Subvention Scheme (MISS), Agriculture Infrastructure Fund (AIF), Formation and Promotion of 10,000 Farmers Producers Organisations (FPOs), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), Agriculture Fund for Start-Ups & Rural Enterprises (AgriSURE), Per Drop More Crop (PDMC), Sub-Mission on Agriculture Extension (SMAE), Sub-Mission on Agriculture Mechanisation (SMAM), Sub-Mission on Seed and Planting Material (SMSP), Paramparagat Krishi Vikas Yojana (PKVY), National Food Security and Nutrition Mission (NFSNM), Digital Agriculture Mission, Integrated Scheme for Agriculture Marketing (ISAM) – National Agriculture Market (eNAM), Integrated Scheme for Agriculture Marketing (ISAM) – Others (ISAM-Others), Mission for the Integrated Development of Horticulture (MIDH), Soil Health Card (SHC), Rainfed Area Development (RAD), National Mission on Edible Oils (NMEO) – Oil Palm, National Mission on Edible Oils (NMEO) – Oilseeds, National Beekeeping and Honey Mission (NBHM), Mission Organic Value Chain Development for North Eastern Region Agroforestry, Crop Diversification Programme (CDP).
A key policy reform is the adoption of the Minimum Support Price (MSP) policy. A NITI Aayog study titled “Effects of MSP on farmers’ income” (2016) found that guaranteed MSP encouraged 78% of farmers to adopt improved farming methods, such as the use of high-yielding variety (HYV) crops and organic manure, chemical tests, and scientific harvesting techniques. Additionally, infrastructure improvements led to technological advancements benefiting farmers. In 2023, the Indian Council for Agricultural Research documented over 75,000 success stories of farmers whose income doubled during this period. Although significant progress has been made, much more remains to be accomplished.
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