India: India is the world’s sixth largest economy but still heavily dependent on agriculture as the primary source of livelihood for a large part of its population. Despite its contribution to the national GDP declining to about 14%, agriculture still remains important, especially in rural areas. The sector employs more than 45% of the workforce and supports millions of families, making it crucial for rural development and allied industries such as dairy, poultry and fisheries.
Several factors are responsible for the declining economic share of agriculture. Rapid growth in the industrial and service sectors has outpaced the expansion of agriculture, while the sector is struggling with stagnant productivity due to limited adoption of scientific practices and modern technology. Fragmentation of land holdings and climate variability also threaten sustainable agricultural productivity.
Climate change is a significant challenge for Indian agriculture, affecting yields, crop viability and regional sustainability. Wheat yields are expected to decline by 4-5% for every 1°C increase in warming, with rice and maize seeing similar declines. Erratic monsoon patterns, droughts, floods and cyclones have damaged millions of hectares of land, especially in vulnerable states.
India’s agricultural policy framework includes tools such as minimum support prices (MSP), input subsidies and loan waivers. However, these tools have limitations, such as encouraging mono-cropping, overuse of fertilizers and wastage of water. Frequent implementation challenges and lack of integrated policy design undermine the long-term effectiveness of these interventions.
Technological change: A ray of hope
The rise of smart and precision farming offers a powerful solution to address productivity, sustainability and resource efficiency concerns. Innovations driven by IoT, big data and automation can revolutionise agriculture. Digital tools and real-time information can enable farmers to make better decisions, reduce risks and improve yields.
Technology can strengthen India’s vulnerable agricultural supply chains by enabling direct links between farmers and markets, reducing intermediaries, and increasing transparency. Efficient supply chains can also reduce post-harvest losses, improve storage and distribution, and ensure better pricing for produce.
Realizing the potential of agritech requires a focus on inclusivity. Small and marginal farmers face significant barriers to accessing technologies, including financial constraints, lack of awareness, and digital illiteracy. Public-private partnerships can play a key role in building rural digital infrastructure and providing financial incentives for technology adoption.
The way forward for Indian agriculture lies in making it resilient, sustainable, and inclusive. Future food systems must ensure food security, meet nutritional requirements, improve farmers’ incomes, and protect the environment. This requires reimagining policies, encouraging crop diversification, and promoting value addition through agriprocessing and branding.
India’s agriculture sector is at a critical juncture, facing challenges such as climate stress, policy inefficiencies and outdated practices. However, with the right mix of innovation, investment and inclusive policy design, Indian agriculture can be transformed into a future-ready ecosystem that uplifts farmers, ensures food and nutrition security and supports environmental sustainability. The task is urgent, and the time for action is now.
