Contract farming will help farmers, who are in jeopardy due to the non-performance of the agricultural sector at the desired level.

Indian agricultural sector is at the crossroads. The pride and honor of the country is now in isolation. Its share, as a contributor to the Gross Domestic Product (GDP) is continuously declining since economic reforms. The growth and development of the agricultural sector is very vital, as a significant portion of the total population depends on it today even after approximately 60 years of independence. Though the concentration of the working population is more on the agriculture sector, its share in GDP is not encouraging, which is really a matter of great concern for all. Many structural defects are in its kitty, like inadequate infrastructure, investment, credit, knowledge, etc. The sector needs special attention as its share in the GDP is falling and its annual growth is approximately less than 2%. Astonishingly the dependency on it is not declining.

Agriculture has received special attention in the planned development of India. Its contribution to the GDP is now approximately 23%, providing livelihood to a significant portion of the population of the country. Its growth was significantly less in the first half of the 20th century due to the inadequacy of capital and technology. In the second half of the 20th century, necessary investment and technology had been provided and hence, development and enhancement in production was witnessed. Green Revolution is the outcome of the strategic efforts done by the government. Realizing the need and importance of agriculture, there is an urgency to adopt continuous agriculture development programs. Agricultural Economists have titled it as the "Second Green Revolution". Agriculture needs attention, because, on the one hand population size is growing and on the other hand per capita income is increasing, which is adding to the demand for food grains. Hence, farming is not only becoming significant but also simultaneously decisive for the people involved in it. The major challenge that lies in the agricultural sector is to increase the productivity. The area under agriculture is likely to be reduced with the increasing urbanization. Hence, the only way out is increasing the productivity to match the international averages.

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