Accelerating agricultural development for inclusive growth: strategic issues and policy options

Abstract

Like most other developing countries, India has predominantly been an agrarian economy, with agriculture sector contributing the largest share to gross domestic product (GDP) and employment. The introduction of high yielding varieties (HYV) technology in mid-1960s yielded spectacular results in foodgrains production. However, growth in productivity is slowing down in many states while the scope for expanding the area under cultivation as well as irrigation is limited. Therefore, the real challenges for agricultural sector in future would be to feed the ever growing population and to protect long-term sustainable productive capacity of natural resources like land and water. This paper analyses the dynamics of structural transformation of the Indian economy and major drivers of transformation, giving an overview of the past achievements and the future challenges in Indian agriculture, finally identifying the key policy issues and strategies to accelerate sustainable broad-based growth in the agriculture sector in the country.