The hectic pace that India is witnessing in growth through energetic and vigorous efforts of government and various other
stakeholders will lose its momentum, if not accompanied by holistic and
all-inclusive growth of all the sectors of the
economy. The juggernaut of growth has the intrinsic challenge of hitting hurdles
and stalling if the major sector of the Indian economy, the rural India, does not or
is not made to participate in the changing paradigms of financial growth.
A booming agriculture sector is the key to achieving sustainable
higher rates of growth in the country. While in the 1950s, agriculture
contributed about 56% to the GDP, its contribution has significantly declined to 25%
today. According to the 2001 Census, 67% of our population and 54% of
the total workforce depend on agriculture, in one way or the other. One
incremental percentage of growth in agriculture leads to an additional income
generation of Rs 10,000 cr in the hands of the farmers, thereby increasing their
disposable income and hence purchasing power. This increase in demand gives
a push to the industry as well, which in turn raises the overall GDP growth.
Indian agriculture is on the threshold of a radical shift in its
structure, operations and aspirations. In addition to the positive
demographic trends which drive the increased consumer demand for high value
food products, the inherent supply strength for key agricultural
commodities, coupled with recent government sponsored schemes and initiatives,
have been the drivers of growth in the sector. The government initiatives are
aimed at drawing private sector participation and have helped in the creation of
a positive outlook and the much-needed vibrancy in the sector.
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