Analyze the challenges faced by the Indian agriculture sector in achieving targeted growth rates. What measures can be taken to align agricultural growth with India's aspirations of becoming a developed nation?

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Context

Agriculture supports nearly 45% of India’s workforce but contributes only about 15% to GDP. Achieving higher and stable agricultural growth is critical for inclusive development and India’s aspiration of becoming a developed nation.

Challenges in achieving targeted agricultural growth

Low productivity: Yield levels of major crops remain below global averages due to limited mechanisation, low seed replacement rates, and suboptimal input use.
Fragmented landholdings: Over 85% of farmers are small and marginal, constraining economies of scale and technology adoption.
Climate vulnerability: Increasing frequency of droughts, floods, and heat stress affects output stability; only about 50% of net sown area is irrigated.
Market and price risks: MSP-centric procurement benefits limited crops and regions, while farmers face price volatility and weak market access.
Post-harvest losses: Inadequate storage, cold chains, and processing lead to losses estimated at 6–18% for perishables.
Institutional gaps: Limited access to formal credit, extension services, and agri-research diffusion hampers innovation.

Measures to align agriculture with developed-nation aspirations

Productivity enhancement: Promote climate-resilient seeds, precision farming, digital advisories, and mechanisation through FPOs.
Diversification and value addition: Shift towards high-value crops, livestock, fisheries, and food processing to raise farm incomes.
Market reforms: Strengthen e-NAM, expand contract farming with safeguards, and rationalise MSP towards income support.
Infrastructure investment: Expand irrigation, storage, cold chains, and rural logistics under PMKSY and Gati Shakti.
Sustainability focus: Encourage natural farming, efficient water use, and soil health management for long-term resilience.
Human capital transition: Enable skilling and non-farm employment to absorb surplus labour.

Sustained agricultural transformation is essential for inclusive growth, food security, and structural economic transition.

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