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Why Indian Agriculture Is Not On Permanent Decline

Indian's agriculture ranks second in the world agricultural production” says food and agriculture organisation of United Nations and yet there are continuous reports of agriculture being on permanent decline

Observing and speculating agriculture and its economics in a nation like India can be misguiding at times. A key reason of selective players in world trade to malign image with the intents, termed unconvincing. In the words of S Ganeshan, chairman of international treaties expert committee from Indian chemical council “From suicide to productivity ground reality is very much emotionally driven and this makes it vulnerable for misrepresentation”.

“Indian's agriculture ranks second in the world agricultural production” says food and agriculture organisation of United Nations and yet there are continuous reports of agriculture being on permanent decline. Aspects can be more visible if we take a look at trend of agriculture production and its contribution to GDP-

Indian agricultural production has increased in past 11 years from $87 billion in financial year 2004-05 to $322 billion in financial year 2015-16. Contribution to GDP from agriculture is also 17 per cent of entire GDP. Logically it still remains a strong contributor to national economy of India. Multiple effect of agriculture on economy also cannot be ruled out, making agriculture necessary for overall economic development.

Another point is where India’s world rank in services and industry sector is 11th and 12th respectively, agriculture still stands tall.

Agrarian exports and India

For India, exports do play a critical role as it influences the economy by playing key role in growth, employment and balance of payments. Apart from contributing to GDP in a handsome way, agriculture does remain a key contributor for earnings through exports. India stands as one of the leading agrarian produce exporter’s in world economy. Entire agrarian exports from India had grown at 21 per cent per annum from $17 billion in financial year 2011 to reach $36 billion in financial year 2015.

Net earnings from agriculture had been comparable to that of service sector, especially in previous years. In the year 2014, net exports from agriculture, were $16 billion and that from commercial services were $9 billion (a world trade organisation data). The clear heights Indian agriculture had attained may only hint that “If agriculture is facing crisis it is facing it due to global phenomena.”

“Even the most advance nations like USA, is cutting the agrarian subsidies to its agrarian trade practitioners and China may never be termed as reliable source of quality agrarian produce”, an FAO official quoted on the condition of anonymity.



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