Key to unlocking India’s $5 trillion economy
Adopting advanced technologies such as artificial intelligence, drones, and precision farming can revolutionise Indian agriculture. Technological interventions are estimated to boost farm productivity by 15-20 per cent, as noted in the Economic Survey 2023.
Agriculture, employing over 42 per cent of India’s workforce and contributing nearly 18-20per cent to GDP, remains the backbone of the economy. However, transforming this sector is essential to achieving the ambitious $5 trillion economy target. Despite being a leading producer of key crops globally, India’s productivity per hectare lags behind many countries. To bridge this gap, the country must focus on technological integration, sustainability, market liberalisation, and robust policy interventions.
Modernising infrastructure
India’s agricultural statistics platforms have laid a strong foundation for data-driven policy and decision-making. The Unified Portal for Agricultural Statistics (UPAg) integrates crop production, pricing, and trade data, providing near real-time insights. Additionally, the Directorate of Economics and Statistics (DES) ensures accurate agricultural estimates at the national and state levels. However, limited grassroots implementation and fragmented data systems hinder their full potential.
Investments in rural infrastructure such as storage facilities, cold chains, and irrigation systems are critical. Currently, India suffers 10-15 per cent post-harvest losses due to inadequate infrastructure. Improved facilities can minimize these losses, enhance market access, and increase farmers’ incomes.
Leveraging technology
Adopting advanced technologies such as artificial intelligence, drones, and precision farming can revolutionise Indian agriculture. Technological interventions are estimated to boost farm productivity by 15-20 per cent, as noted in the Economic Survey 2023. Alongside technology, policy reforms are essential to create a farmer-friendly environment.
Removing restrictive regulations like the Essential Commodities Act and promoting state-level adoption of the Model Agricultural Produce Market Committee (APMC) Act can liberalize the agricultural market. Additionally, reforming land leasing laws to facilitate efficient land use and attract private investments is crucial.
Private sector participation plays a pivotal role in modernizing the agricultural value chain. Agritech startups and large-scale investments in logistics, supply chains, and food processing can enhance productivity and profitability. By encouraging partnerships between farmers and private entities, the government can introduce modern solutions at scale.