Indian agriculture is the backbone of the socio-economic fabric of the country. While its contribution to the Gross Value Added (GVA) has structurally declined over decades, it remains the largest employer in the economy.
- Primary Source of Livelihood: Approximately 54.6% of the total workforce in India is engaged in agricultural and allied sector activities (Census 2011).
- Declining Share in GDP: The share of agriculture in India’s GVA has decreased from about 35% in 1990-91 to approximately 18-20% in recent years, highlighting a structural shift toward the services sector.
- Dependence on Monsoon: Often termed a “Gamble on Monsoons,” nearly 50% of the net sown area lacks permanent irrigation facilities, making crop yields highly sensitive to the South-West Monsoon.
Land Holding Patterns and Fragmentations
The efficiency of Indian farming is significantly hindered by the size of land holdings, which continues to shrink due to inheritance laws and population pressure.
- Dominance of Small and Marginal Farmers: According to the Agriculture Census 2015-16, small and marginal holdings (less than 2 hectares) constitute 86.2% of all operational holdings.
- Average Holding Size: The average size of operational holdings has declined from 2.28 hectares in 1970-71 to 1.08 hectares in 2015-16.
- Economic Non-Viability: Small plots limit the scope for mechanization and economies of scale, leading to low productivity per hectare compared to global averages.
Cropping Patterns and Diversity
India possesses a diverse range of agro-climatic zones, allowing for the cultivation of a wide variety of crops across three distinct seasons.
| Season | Period | Major Crops |
| Kharif | June – October | Rice, Maize, Jowar, Bajra, Cotton, Jute, Groundnut |
| Rabi | November – April | Wheat, Barley, Peas, Gram, Mustard |
| Zaid | March – June | Watermelon, Cucumber, Vegetables, Fodder crops |
- Food Grain Dominance: A significant portion of the cultivated area is devoted to food grains (Rice and Wheat) due to the Minimum Support Price (MSP) regime and food security priorities.
- Subsistence vs. Commercial: While commercial farming is rising in states like Punjab and Maharashtra, a vast majority of Indian farmers still practice subsistence farming, consuming most of their produce locally.
Technological and Input Trends
The “Green Revolution” of the 1960s marked a shift toward intensive agriculture, though its benefits were geographically skewed.
- Low Mechanization Levels: Farm mechanization in India stands at roughly 40-45%, significantly lower than in the US (95%) or China (57%).
- Seed-Fertilizer-Irrigation Nexus: High Yielding Variety (HYV) seeds require assured irrigation and chemical fertilizers, leading to soil degradation and groundwater depletion in the “Bread Basket” regions.
- Fertilizer Consumption: India is the second-largest consumer of urea in the world. The skewed NPK (Nitrogen, Phosphorus, Potassium) ratio, often straying from the ideal 4:2:1, impacts soil health.
Key Economic Challenges
The sector faces “hidden” economic stresses that impact the overall stability of the Indian economy.
- Disguised Unemployment: This occurs when more people are engaged in farming than are actually required, resulting in marginal productivity of labor being zero.
- Low Value Addition: Only about 10% of India’s agricultural produce is processed, leading to high wastage (estimated at Rs 92,000 crore annually) and lower returns for farmers.
- Credit Indebtedness: Despite the expansion of Institutional Credit (Kisan Credit Cards), many small farmers remain reliant on informal moneylenders who charge exorbitant interest rates.
Important Facts and Trivia for Prelims
- Total Geographical Area: India has the world’s 10th largest arable land area.
- Net Sown Area: Approximately 141 million hectares.
- Global Rankings: India is the world’s largest producer of milk, pulses, and jute, and the second-largest producer of rice, wheat, sugarcane, and groundnut.
- Organic Farming: Sikkim is the first state in the world to become fully organic.
- Agro-Climatic Zones: The Planning Commission (now NITI Aayog) divided India into 15 major agro-climatic zones based on regional characteristics.
Institutional Framework and Schemes
The Government of India intervenes through various price and income support measures to stabilize the sector.
- MSP (Minimum Support Price): Announced for 22 mandated crops and Fair and Remunerative Price (FRP) for Sugarcane, based on recommendations by the CACP.
- PM-KISAN: A central sector scheme providing income support of Rs 6,000 per year to landholding farmer families.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): A crop insurance scheme providing comprehensive risk cover at low premium rates (2% for Kharif, 1.5% for Rabi).