Introduction
The declining share of agriculture in India's GDP raises significant concerns regarding economic stability and rural welfare. Here are five reasons for this worrying trend.
1. Urbanization and Migration
- Rapid urbanization leads to a shift in labor from agriculture to urban sectors.
- The allure of better job opportunities in cities results in a workforce drain from rural areas.
- This migration exacerbates rural poverty and agricultural underemployment.
2. Industrialization and Service Sector Growth
- India’s economy is transitioning towards industrial and service sectors, which contributes more to GDP.
- Increased investment in manufacturing and technology attracts labor away from agriculture.
- The service sector, particularly IT and finance, has shown exponential growth, overshadowing agriculture's significance.
3. Climate Change and Environmental Degradation
- Agriculture is highly vulnerable to climate change, leading to erratic weather patterns, affecting crop yields.
- Soil degradation, water scarcity, and loss of biodiversity undermine agricultural productivity.
- Farmers face increased risks, leading to a loss of interest in farming as a viable livelihood.
4. Lack of Modernization and Investment
- Insufficient investment in agricultural technology and infrastructure hampers productivity.
- Traditional farming practices persist, limiting yields and efficiency.
- Access to credit and modern farming techniques remains inadequate for many farmers.
5. Policy and Market Failures
- Ineffective agricultural policies and poor implementation hinder growth in the sector.
- Farmers often receive low prices due to inadequate market access and price fluctuations.
- The lack of a robust support system for farmers contributes to the decline in agricultural GDP share.
Conclusion
Addressing these issues is crucial for revitalizing agriculture and ensuring it remains a vital component of India's economy.