Ecology, Environment and Conservation Paper

INDIAN AGRICULTURE: PRESENT SITUATION AND THEIR CONTRIBUTION IN ECONOMY

S. K. Rajak, R. K. Panse, A.N. Goutam and D.M. Kadam

Abstract

Agriculture occupies a prominent position in Indian policy-making not only because of its contribution to GDP (14%) but also because of the large proportion of the population that is dependent on the sector for its livelihood. The growth in population and wealth has stimulated demand to the extent that domestic production has not always been able to keep up and there is increasing speculation that the Indian economy may be overheating leading to inflation. The downside of the increased import demand and the current commodity boom is that India’s food import bill will rise sharply. However it is clear that India’s agricultural sector has made huge strides in developing its potential. The green revolution massively increased the production of vital food grains and introduced technological innovations into agriculture. This progress is manifested in India’s net trade position. Where once India had to depend on imports to feed its people, since 1990 it is a net exporter of agri-food products. Its agriculture is large and diverse and its sheer size means that even slight changes in its trade have significant effects on world agricultural markets. How India will develop is still a big unknown, with the picture changing rapidly. Questions have arisen about India’s capacity to compete in global markets under the current farm structure and farm policy. As the service economy grows, the share of agriculture will diminish, which may also have implications for India’s stance on trade and agriculture policy in the future.