Model Answer
0 min readIntroduction
Since India’s independence, the contribution of agriculture to the nation’s Gross Domestic Product (GDP) has steadily decreased from approximately 51.9% in 1950-51 to around 18.8% in 2022-23 (Provisional Estimates, National Statistical Office). This structural shift is a common feature of economic development as economies mature and diversify. However, the declining share raises concerns about the health of the Indian economy. The question isn’t simply whether the share is falling, but whether this fall *indicates* a fundamental weakness, demanding a careful examination of the implications for growth, employment, and equity.
The Declining Share of Agriculture: A Structural Transformation
The decline in agriculture’s contribution to GDP is largely a result of structural transformation – a natural process as economies develop. As other sectors like industry and services grow at a faster pace, their share in GDP increases, inevitably reducing the relative contribution of agriculture. This is not necessarily negative. It signifies increased productivity and efficiency in other sectors, leading to higher overall economic growth.
Arguments Against Viewing the Decline as a Weakness
- Increased Productivity: Higher productivity in agriculture, driven by the Green Revolution (1960s) and subsequent technological advancements, allows fewer people to produce more food, freeing up labor for other sectors.
- Sectoral Shift & Higher Value Addition: A shift towards industry and services generally leads to higher value addition and greater economic complexity. These sectors offer higher income potential and contribute more to innovation.
- Diversification & Resilience: A diversified economy is more resilient to shocks. Over-reliance on agriculture makes an economy vulnerable to monsoon failures and global commodity price fluctuations.
Arguments For Viewing the Decline as a Weakness
- Rural Distress & Employment: Agriculture remains the primary source of livelihood for a significant portion of the Indian population (around 45% as per the 2011 Census). A decline without adequate alternative employment opportunities leads to rural distress, unemployment, and migration.
- Food Security Concerns: While India has achieved food grain self-sufficiency, neglecting agriculture can jeopardize long-term food security, especially in the face of climate change and a growing population.
- Income Inequality: The benefits of growth in non-agricultural sectors are not always evenly distributed, potentially exacerbating income inequality between rural and urban areas.
- Slow Agricultural Growth: Despite the declining share, agricultural growth rates have often been volatile and insufficient to ensure farmer welfare and sustainable development. The average growth rate of agriculture and allied sectors has been around 3.8% during the last three years (2021-22 to 2023-24).
Necessary Conditions for Sustainable Development
The declining share of agriculture is not inherently a weakness, *provided* certain conditions are met:
- Robust Rural Employment Generation: Investing in rural infrastructure, promoting agro-processing industries, and developing rural non-farm sectors are crucial for creating alternative employment opportunities. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a step in this direction, but needs strengthening.
- Agricultural Diversification: Shifting towards high-value crops, horticulture, animal husbandry, and fisheries can increase farmer incomes and improve agricultural resilience.
- Investment in Agricultural Research & Technology: Continued investment in agricultural research, extension services, and technology adoption is essential for enhancing productivity and sustainability.
- Strengthening Agricultural Infrastructure: Improving irrigation facilities, storage infrastructure, and transportation networks are vital for reducing post-harvest losses and ensuring market access for farmers.
Conclusion
The declining contribution of agriculture to India’s GDP is a natural consequence of economic development, and not necessarily a weakness in itself. However, it becomes a cause for concern if it is accompanied by rural distress, food insecurity, and rising income inequality. A balanced approach that prioritizes both the growth of non-agricultural sectors and the sustainable development of agriculture, with a focus on rural employment and farmer welfare, is essential for ensuring inclusive and equitable growth. Ignoring the agricultural sector would be detrimental to the long-term health and stability of the Indian economy.
Answer Length
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