The trajectory of India’s agricultural sector growth stands impressive, boasting an average annual expansion of 4.6% over the past six years. In the fiscal year 2021-22, this growth was marked at 3.0%, following a commendable 3.3% in 2020-21.

Notably, India’s prominence as a net exporter of agricultural products has surged in recent times, showcasing an 18% increase in exports during the fiscal year 2020-21.

This remarkable phase of agricultural buoyancy can be attributed to the strategic measures undertaken by the government, which include the nurturing of farmer-producer organizations, the promotion of diversified cropping, mechanization support for heightened productivity, and the establishment of the Agriculture Infrastructure Fund (AIF).


Vital Role of Agriculture in Growth:

The agriculture and allied activities sector play a pivotal role in augmenting India’s overall growth trajectory, ensuring both food security and economic progress.

Government initiatives are seamlessly aligned with the recommendations outlined by the Committee on Doubling Farmers’ Income. These encompass augmenting crop and livestock productivity, diversifying towards high-value crops, optimizing resource efficiency, enhancing cropping intensity, improving real prices for farmers, and encouraging shifts from farming to non-farming occupations.

The introduction of the Minimum Support Price (MSP) mechanism guarantees that farmers receive remuneration at one and a half times the all-India weighted average cost of production.

A glance at the Fourth Advance Estimates for 2021-22 reveals a consistent year-on-year escalation in the production of food grains and oilseeds.

Noteworthy is the substantial surplus in pulse production, surpassing the five-year average of 23.8 million tonnes.

Enabling Agricultural Prosperity:

Facilitating accessible and cost-effective credit for farmers has emerged as a focal point for the Government of India. Initiatives like the Kisan Credit Card, extended to encompass fisheries and animal husbandry in 2018-19, exemplify this effort.

The Interest Subvention Scheme (now Modified Interest Subvention Scheme) ensures farmers secure short-term credit at subsidized interest rates, minimizing their financial burden while enhancing agricultural activities.

The strategic embrace of farm mechanization optimizes productivity by timely and efficient utilization of resources. State governments, aided by the Sub Mission on Agricultural Mechanization (SMAM), impart training, demonstrate agricultural machinery, and facilitate equipment procurement for farmers.

The growing emphasis on the horticulture sector and allied activities has not only diversified farmers’ income streams but also bestowed resilience against climatic fluctuations.

Organic and natural farming practices, championed for their chemical-free produce and soil health benefits, contribute to reduced environmental pollution and improved agricultural sustainability.

Innovative Agricultural Endeavors:

The PM KISAN Scheme stands as a central sector initiative, bolstering the financial needs of land-holding farmers. Disbursing an annual benefit of ₹6,000 per family through Direct Benefit Transfer (DBT) mechanisms, it reinforces the agricultural community.

The Agriculture Infrastructure Fund (AIF), operational from 2020-21 to 2032-33, emboldens post-harvest infrastructure and community farm assets creation. With provisions for a 3% interest subvention and credit guarantee support, AIF drives rural development.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) holds the distinction of being the world’s largest crop insurance scheme in terms of farmer enrolment. The nominal premiums of 1.5% and 2% for Rabi and Kharif seasons, respectively, substantially supported by the Centre and State Governments, alleviate financial burdens on farmers.


The evolving landscape of agriculture beckons strategic reorientation to address challenges posed by climate change, fragmented landholdings, inadequate mechanization, low productivity, and escalating input costs.

A renewed focus on the burgeoning food processing sector promises to curtail wastage, prolong storage durations, and optimize farmers’ remuneration.

By nurturing an adept food processing sector, fortified with enhanced infrastructure like cold storage and robust logistics, India can mitigate wastage, amplify value addition, ensure equitable returns for farmers, foster employment, and bolster export revenues.


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