Agriculture Sector in India: Trends, Issues and Challenges

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| Importance of Agriculture Sector in Economic Growth in India - Trends, Issues and Challenges| | |
Submitted to -| Prof. Rudra Sensarma|
| Submitted By – Ajanta Nag - EEPGM-11C-001Ashish Katariya- EPGP-04C-017Debangshu Datta - EPGP-04C-029Hari Akkavajhula - EPGP-04C-037Rajesh Solanki - EPGP-04C-076Tarun Kumar - EPGP-04C-103 |

Table of Contents
Introduction2
Objective3
Performance of agriculture sector in india3
Government policies in agriculture sector6
suggestions–new policy measure to help agriculture sector7 Conclusion8
References9

Introduction

Agriculture is a critical sector of the Indian economy. Though manufacturing and service sector industries gained attention during the last couple of decades, agriculture remains to be the most important contributor of growth in India. Nearly two-thirds of India’s population depends directly on agriculture for its livelihood. It meets the food requirements of the people and produces several raw materials for industries.

From agricultural point of view, India has vast expanse of level land, wild climatic variations suited for various types of crops, rich soils, abundant sunshine and a long harvesting season (rabi and kharif). Approximately, 140-145 million hectares of land is under agriculture. Post Independence, large areas in India have been brought under irrigation but only one-third of the cropped area is actually irrigated. There are many reasons responsible for the low productivity of agriculture. Farming depends mainly upon monsoon rain and farmers own small pieces of land and grow crops primarily for consumption. Another reason for low productivity of agriculture is insufficient storage facilities for crop yield. About one-third of land holdings are very small and less than one hectare in size. Due to small size of land holdings, modern way of cultivation cannot be used. Even today the farmers are using very old methods, tools and implements for farming. Artificial ways of cultivation are not implemented in India. Because of various reasons like lack of awareness, most farmers do not use better quality of seeds, fertilizers and pesticides. There is lot of exploitation of marginal farmers. There is also low productivity because of increasing pressure on land and absence of bank credit.

Agriculture contributes in foreign exchange of our country. India exports agricultural products and earns foreign currency. Agricultural exports have helped India in earning valuable foreign exchange and thereby improving economic development.

Objective

India is an emerging market and the objective of this project is to study the important role that the agricultural sector will play in the economic growth in India. Though more than 70% of the population depends on the Indian agriculture, the productivity has decreased post independence area. Lot of emphasis is given on the service sector which has shown tremendous growth in the last few years. It’s time now that policies are introduced to take care of the different issues and challenges in the Agricultural sector.

Performance of agriculture sector in india

The agriculture sector in India has undergone significant changes in the form of decrease in share of GDP from 30 percent in 1990-91 to 14.5 percent in 2010-11 indicating a shift from the traditional agrarian economy towards a service dominated one. The same is reflected from the below Figure 1. This decrease in agriculture’s contribution to GDP has not been accompanied by a matching reduction in the share of agriculture in employment. About 52% of the total workforce is still employed by the farm sector which makes more than half of the Indian population dependant on agriculture for sustenance. However, non-farm activities also contributed to the growth from rural economy.

Source: CSO
Figure 1: Sectoral Composition of GDP

“The average size of operational holdings in India has...
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