Mahatma Gandhi had once stated that India lives in its villages and farmers are the real backbone of India. India is basically accounted as an agrarian country with various dynamics in its soil. In spite of huge famer's suicides in and around the country, it still captures the 2nd position in farm output in worldwide production.
The GDP contribution from agriculture has undergone tremendous changes in the recent past. Agriculture contributed a whopping 32 percent to the country overall GDP from the year 1990-1991. During 2005-2006 it accounted 20 percent of the Country's GDP. However from the time from 2007 to 2008 it came down to 17 percent. But the GDP contribution from others sectors like as industry and service sector witnessed a huge peak.
The Growth Rate of the Agriculture Sector in India grew after independence since the five year plans introduced by the government of India placed special emphasis on the sector. Further the Green revolution gave a major boost to the agricultural sector by providing tremendous irrigation facilities, provision of agriculture subsidies and credits, and improved technology. This lifted the Agriculture Growth Rate in India to a very high level.
Although the agricultural yield increased in India after independence but in the last few years there is sharp decline in its productivity. The total production of food grain was 212 million tonnes in 2001- 2002 and the next year it declined to 174.2 million tonnes. And agriculture growth rate in India declined by 5.2 percent in 2002- 2003. The Growth rate of the Agriculture Sector in India GDP grew at the rate of 1.7 percent each year between 2001- 2002 and 2003- 2004. This shows that Agriculture Growth Rate in India GDP has grown very slowly in the last few years.
The agricultural sector has had low production due to a number of factors such as illiteracy, insufficient finance, inadequate marketing of agricultural products and introduction of genetically modified BT seeds to increase productivity. Farmer suicides are also hugely responsible for this sudden outburst in Indian agriculture. A record 2.5 lakh farmers have committed suicide in India over the last 13 years. Every 12 hours a farmer is said to have commit suicide in India. Many have also opted for other occupations due to the evils associated with it.
Today U.S. has become one country where agriculture is almost nonexistent. The structure of farms and farm household in which they exist has changed enough over the last century. In the year 1900 a 41 percent of workforce employed in agriculture, in 1930 only 21.5 percent of workforce employed in agriculture and the agricultural GDP recorded a share of total GDP of 7.7 percent.
In 1945 only a 16 percent of the total labor force employed in agriculture and registered a total GDP of 6.8 percent. Similarly in 1970 a diminutive 4 percent of employed labor force worked in agriculture with a GDP of 2.3 percent. Finally in 2000-02, only a 1.9 percent of employed labor force worked in agriculture.
Today, large shares of the population have entered nonfarm occupations that have supported economic growth and development. As a part of the transformation spurred by technological innovation and changing market conditions, production agriculture has become a smaller player in the national and rural economies. While the more broadly defined food and agriculture sector continues to play a strong role in the national economy, farming has progressively contributed a smaller share of gross domestic product (GDP) and employed a smaller share of the labor force over the course of the century.
Given the scenario what will be the Indian situation after 10 years from now, a sustainable agricultural growth can be witnessed if the farmers are educated and proper subsidies are provided. But if the government fails to do the same a day will come when India will no more be known as an agrarian economy. P. Sainath, a well Known Journalist in rural affairs and social activist said "While labour productivity rose 84 percent, real wages of labourers dropped 22 percent. The country imports wheat from Australia, which was importing wheat nine years ago from Punjab. It exports 20 million tonnes of grain at Rs 5.45/kg, whereas the same grain is sold to the poor at Rs 6.15/kg."
However the questions remains will the Indian agriculture soon take the shape somewhat like USA. Will it be for better or bad? What the future holds in for our Indian farmers?
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