Agriculture is the backbone of India’s economy, playing a crucial role in the country's socio-economic development. As of 2023, agriculture contributes around 18.3% to India's Gross Domestic Product (GDP) and employs nearly 45% of the workforce. The sector not only ensures food security but also supports industries, exports, and rural livelihoods.
1. Contribution to GDP and Employment
India's agricultural sector remains a major contributor to the national economy. While its share in GDP has gradually declined due to industrialization and services sector growth, it still holds immense significance. According to the Economic Survey 2022-23, the agricultural sector grew at 3.5% per annum over the past five years. The sector also provides employment to nearly 260 million people, primarily in rural areas, making it vital for poverty reduction.
2. Food Security and Self-Sufficiency
Agriculture ensures food security for a population of over 1.4 billion. India is the world's largest producer of pulses, milk, and spices, and ranks second in wheat, rice, and fruits. The Green Revolution (1960s) transformed India from a food-deficient country to a self-sufficient nation in food production. In 2022-23, India produced 135.54 million tonnes of rice and 112.18 million tonnes of wheat, ensuring food availability and price stability.
3. Source of Raw Materials for Industries
Agriculture supplies essential raw materials to industries such as textiles, sugar, dairy, and food processing. The textile industry, which contributes around 2.3% to GDP and 11% to total exports, relies heavily on cotton production. Similarly, the sugar industry, which supports millions of farmers, depends on sugarcane cultivation, which yielded 490 million tonnes in 2022-23.
4. Export Earnings and Foreign Exchange
Agriculture is a significant contributor to India’s exports. In 2022-23, agricultural exports reached $53 billion, accounting for 13.3% of total exports. Major export items include rice, spices, tea, coffee, and seafood. India is the largest exporter of basmati rice, shipping nearly 4.5 million tonnes annually.
5. Rural Development and Poverty Reduction
Around 65% of India's population resides in rural areas, where agriculture is the main livelihood source. Government schemes like PM-KISAN, which provides direct income support to farmers, and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which guarantees rural employment, help boost rural incomes. Agricultural development directly impacts rural infrastructure, education, and healthcare.
6. Climate Resilience and Sustainable Agriculture
Given the challenges of climate change, sustainable agricultural practices like organic farming, precision agriculture, and micro-irrigation are being promoted. India has the highest number of organic farmers globally, covering 2.78 million hectares under organic cultivation. The government is also investing in water conservation through programs like Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
Conclusion
Agriculture remains a pillar of India’s development, driving economic growth, food security, and rural well-being. Strengthening agricultural infrastructure, adopting modern technologies, and ensuring sustainability will be key to achieving long-term progress and making India a global leader in agribusiness