New Delhi, Jan 29 (PTI) India's agriculture sector, crucial to achieving the government's vision of a developed nation by 2047, faces significant sustainability and productivity challenges despite recent
growth, the Economic Survey said.
The survey called for key reforms, including overhauling the fertiliser sector, boosting research and development, strengthening irrigation systems and promoting crop diversification.
Agriculture and allied activities contribute nearly one-fifth of India's national income but account for 46.1 per cent of the workforce, making the sector central to the country's overall growth trajectory, the survey said.
The sector has registered an average annual growth rate of around 4.4 per cent over the past five years at constant prices, with livestock and fisheries leading the gains. In the second quarter of fiscal year 2025-26, agriculture grew 3.5 per cent.
"Agriculture will be central to achieving Viksit Bharat, driving inclusive growth and improving the livelihoods of millions," the survey tabled in Parliament said, referring to Prime Minister Narendra Modi's vision of a developed India.
However, climate change poses significant challenges, including erratic weather patterns, rising temperatures, and extreme events that affect crop yields, the survey warned. Water scarcity remains critical in regions dependent on monsoon rainfall.
PRODUCTIVITY GAPS
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While India's agricultural growth has exceeded the global average of 2.9 per cent, yields across several crops, including cereals, maize, soybeans and pulses, continue to lag global averages.
The gross irrigated area has increased to 55.8 per cent of the gross cropped area in 2022-23 from 41.7 per cent in 2001-02, but significant disparities persist across states and crops, with irrigation coverage ranging from less than 15 per cent for millets to about 67 per cent for rice.
Fertiliser use remains inefficient, with the nitrogen-phosphorus-potassium ratio deteriorating in recent years largely due to price distortions favouring nitrogenous fertilisers, the survey said.
The government has strengthened cooperatives and farmer-producer organisations (FPOs) to expand access to credit and technology. Digital initiatives such as the Digital Agriculture Mission and the e-NAM platform, which connects farmers with markets, are increasing transparency.
India has made notable progress in dairy, poultry, fisheries and horticulture production, which contribute significantly to GDP.
The survey said Indian agriculture is entering a phase of new opportunity, supported by advances in irrigation, digital extension, improved storage, and the strengthening of cooperatives and value chains.
"Yet, structural challenges such as small landholdings, climate risks, productivity gaps, and weak market integration continue to weigh on farm incomes," the survey said.
WAY FORWARD
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The survey said the way forward requires deepening reforms, promoting climate-resilient technologies, empowering FPOs, improving markets and logistics, and enhancing risk management.
With sustained investment and innovation, agriculture can become more resilient, competitive, and income-enhancing, it said.
Strengthening private sector participation in food processing, cold chain logistics and high-value agricultural products will be crucial for competitiveness in domestic and export markets, it added.
Expanding high-growth sectors, such as horticulture, agroforestry, dairy, poultry, and fisheries, can further support inclusive economic development and job creation, particularly for rural communities, it said.
Despite recent gains, the dairy sector faces feed and fodder shortages, while the fisheries sector needs to expand value addition and processing capacity to reduce dependence on a narrow export basket, the survey added. PTI LUX
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