India is an agricultural economy, with agriculture accounting for nearly 20% of GDP and employing nearly 60% of the workforce. India ranks among the top producers of rice, wheat, cotton, sugar, horticulture, and dairy products.
India's already sizable population is expected to become the world's largest in the next two decades, while its economy will soon surpass Japan's to become the world's third largest. The resulting increase in food demand must be met either through increased agricultural productivity or increased food imports.
Historical Background
Over the last three decades, agricultural output has increased significantly, and crop production has been able to keep up with the demands of a growing population.
The introduction of high-yielding seeds (such as improved wheat strains) in the mid-1960s, as well as the increased use of chemical fertilizers, defined the 'green revolution'. Wheat production increased by nearly 150 percent between the mid-1960s and the mid-1970s, with the country becoming self-sufficient in grain production by the end of the 1970s.
Increased agricultural production boosted rural incomes while lowering food prices. This had the effect of alleviating rural poverty (World Bank 2004).
Import duties on wheat, rice, and pulses have been gradually eliminated since 2006 to increase the domestic availability of these commodities and relieve domestic price pressures caused by rising international food prices.
The government has occasionally used trade policy to ensure domestic supplies. In addition to land distribution policies, the government significantly impacts the agricultural sector through other policy instruments such as input subsidies, minimum price support arrangements, and government food procurements.
Products Best for Economy
India is the world's leading producer of milk, pulses, and jute, and ranks second in rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton. It is also a major producer of spices, fish, poultry, livestock, and crops.
1. Pulses- India is the world's leading producer (25% of global production), consumer (27% of global consumption), and importer of pulses (14%). Pulses cover approximately 20% of the land area and account for 7-10% of total foodgrain production in the country.
2. Sugarcane- India is the world's second-largest producer of sugarcane, after Brazil. Maharashtra is India's largest producer of sugarcane, producing more than 138 lakh tonnes in 2022-23. Sugarcane is a multipurpose crop that produces sugar, jaggery, khansari, molasses, and even paper.
3. Wheat- The northern states of Uttar Pradesh, Punjab, and Haryana are India's top wheat producers. In 2021, the country produced roughly 107 million metric tons of wheat. In 2022, approximately 31 million hectares of wheat were cultivated, with over 31 million hectares harvested in the country.
4. Rice- India is the world's second-largest rice producer and the largest rice exporter. In 2022-2023, India produced more than 135 million metric tons of milled rice, second only to China.
India's rice production has grown from 53.6 million tonnes in 1980 to 120 million tonnes in 2020-2021. India's rice production is expected to total 1308.37 lakh tonnes between 2022 and 2023.
5. Spices- India, with its rich culinary heritage, is the world's leading spice producer and exporter. With approximately 75 different spices grown in the country, India's spice production contributes significantly to the global spice market. Madhya Pradesh is India's largest spice-producing state.
Role of Agriculture in the Indian Economy
Agriculture accounts for 17% of India's GDP, making it the 'backbone' of the economy. Agriculture has a significant impact on all sectors in the country.
Agriculture exports commodities such as fruits, vegetables, nuts, spices, rice, and processed milk products, contributing significantly to foreign exchange earnings.
Agriculture has overcome challenges by improving production, introducing hybrids, and cultivating resistant and fast-growing crop varieties. India's improved production and processing technology has led to an increase in exports to many countries.
Agriculture is a 24/7 industry that contributes to the Indian economy's profits. Agriculture in India cultivates various crops, fruits, nuts, and spices.
The Indian season enabled large-scale exports of agricultural commodities, earning foreign currency.
Despite the global economic impact of the coronavirus, the Indian economy remains stable. Agriculture is regarded as the foundation of India's economy.
Conclusion
India has a strong agrarian economy, with agriculture employing a large portion of the population. The sector is critical to the country's overall economic development, contributing significantly to GDP and employing a large proportion of the population. To summarize, India's agrarian sector is transforming, with efforts to modernize and address long-standing challenges.
Government policies, technological advancements, and sustainable farming practices are all critical components of ongoing initiatives to ensure the sector's growth and resilience. It is critical to stay current on the state of India's agricultural products and the sector's contribution to the overall economy.
Written By- Archi Goldi
(This article has been authored exclusively by the writer and is being presented on Eat My News, which serves as a platform for the community to voice their perspectives. As an entity, Eat My News cannot be held liable for the content or its accuracy. The views expressed in this article solely pertain to the author or writer. For further queries about the article or its content, you can contact this email address - archigoldi17@gmail.com )
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