From 56.5% in 1950-51 to ~17% in 2016-17,
Share of Agriculture in India's GDP has been on a continuous decline. The
decline in growth of agricultural GDP was primarily due to the fall in the
production of agricultural crops such as oilseeds, cotton, jute and Mesta, and
sugarcane. In 2009-10, despite experiencing the worst south-west monsoon since
1972 and subsequent significant fall in Kharif food grain production, the
growth marginally recovered to 0.4 per cent primarily due to a good Rabi crop.
Reversal in this decline, will be a critical piece in ensuring India's GDP
consistently grow at over 8% in the times to come. Agriculture plays a vital
role in India's economy. Over 58 per cent of the rural households depend on
agriculture as their principal means of livelihood.
Agricultural markets remained fragmented
even as attempts were made to integrate markets for goods and services.
Individual farmers increased investment in irrigation and labour saving
devices. Simultaneously, they also increased cropping intensity. Investments
paid off as the 2007-12 period was a productive one for agriculture. However,
from a national standpoint, government did not do enough to complement private
investment in agriculture, particularly in irrigation. The economies of scale that
come out of public investment in irrigation serve to both boost production and
partially mitigate the investment risks of farmers. Instead of public
investment, policy was oriented towards enhancing spending in subsidies riding
on inefficient delivery mechanisms, which left farmers vulnerable to
calamities.
Government has realized that to catapult
India into 8% GDP growth trajectory, will be possible if all the three sector
i.e. Agriculture and allied, Industry and Services, grows in tandem from strength
to strength. In all probability, services sector will reflect growth exhaustion
and industry may not compensate for this exhaustion completely, which means the
burden to bridge the growth deficit will fall on Agriculture sector. And for
agriculture sector to fire all cylinder, Government will have to by reorienting
its spending priorities and helping states with their outreach.
India's farm yields need to improve and
hence the entire farm and agriculture ecosystem, needs a revival steroid; Crop
yields in India are still just 30% to 60% of the best sustainable crop yields
achievable in the farms of developed and other developing countries. And poor
infrastructure and unorganized retail means India has one of the world's
highest levels of post-harvest food loss. Government will have to improve its
outlay towards agriculture which involves, augmenting irrigation facility,
efficient supply chain for consumption of produce and supply of fertilizer and
seeds, cheaper credit facility, crop insurance, regular revision of MSP,
mechanization etc.
PM Modi devoted an entire episode of his
Mann ki Baat radio talk show to rural issues. He was sympathetic to the plight
of farmers buffeted by adverse weather conditions and promised to craft
supportive policies. He needs to design them immediately as Indian agricultural
sector has entered a challenging phase and the thrust of government policies
needs to be oriented towards enhancing investment in irrigation infrastructure.
This, in turn, has to be supplemented by smarter outreach to introduce better
technology. These measures are essential to build a robust farm sector.
Publisher, certainly sees ache din for the
Agriculture sector and that evident from the recent initiatives taken in some
of agrarian states like Uttar Pradesh, that has gone ahead and announced loan
waiver for farmers, other states will definitely follow suite in some form or
other. Eventually, better infrastructure and technology diffusion are key to
improving agricultural production. And the Government will do everything
possible to fast track the reform process that will transform and eventually
lead to growth in agriculture sector. Investing in smarter value chains,
improving access to credit, technology and market, insulating farmers from
environmental shocks, will create the desired ecosystem.
It's going to be boom time farm and
agriculture equipment manufacturers, and it will be only safe to say the best
growth is yet to be seen by these OEMs. Publisher research report "Demand
Outlook on Farm and Agriculture Equipment Market in India by 2024-25",
aims to provide unparalleled insights on initiatives taken by different state
to accelerate growth in agriculture sector, ground reality on what farmers make
out of the government support, how it will translate to improved spending on
technology absorption and what it will means for agriculture equipment OEMs.
Report will be delivered through mix of primary and secondary research and will
be an indispensable source of insights and information for companies to future
proof their growth plans.
Spanning over 448 pages “Demand
Outlook on Farm and Agriculture Equipment Market in India by 2024-25: Ache Din
for Agriculture Sector and for Equipment OEMs is Definitely Around!” report
covers Executive Summary, Approach & Methodology, Agriculture Sector in
India, Agriculture Value Chain to Equipment and Equipment Application Mapping,
Key demand drivers for agriculture equipment demand, Level of Mechanization in
Agriculture, Trend related to Equipment Procurement Vs Equipment on Hire,
Socio-economic profiling of different farmers from different states, Profiling
of leading agriculture states of India, Installed base of Farm &
Agriculture Equipment Market in India, Farm & Agriculture Equipment Market
in India in 2016-17, Identifying the need gap analysis, Farm & Agriculture
Equipment Market in India by 2024-25, PPP Opportunity, Statewise PESTEL
Analysis to gauge risks to the demand prospects.
Please visit this link for more details: http://mrr.cm/U6H
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at: https://www.marketresearchreports.com/agriculture
