Transformative Trends and Employment in Agriculture in India

Over the past five years, India’s agriculture sector has grown at an average rate of 4.18% per year, significantly contributing to the nation’s economic growth. However, with approximately 55% of the population relying on agriculture as their primary source of income, and a population of 1.4 billion, sustainability in agriculture is critical. It is essential to secure long-term productivity of land holdings, ensure sufficient farm-based incomes, and guarantee food security for the nation.

According to the National Sample Survey Office’s (NSSO) Periodic Labour Force Survey (PLFS) for 2022-2023, 45.76% of India’s workforce was employed in agriculture and related sectors. While this is a slight decrease from the previous year, it remains higher than the 42.5% recorded in 2018-2019. Agriculture employment continues to be a significant source of livelihood in India.

Union Budget 2024: A Strategic Boost for Agriculture

The Union Budget 2024 has allocated ₹1.52 lakh crore to the agriculture and allied sectors, focusing on increasing agriculture employment and skilling opportunities. Key initiatives include:

• Introduction of New Crop Varieties: The government will release 109 new varieties of field and horticulture crops that are more climate-resilient and high-yielding, ensuring better adaptability and productivity in changing environmental conditions.
• Promotion of Natural Farming: The government plans to transition one crore farmers to natural farming over the next two years, supported by certification and branding. Additionally, 10,000 bio-input resource centers will be established to facilitate this transition.
• Digital Public Infrastructure (DPI): In collaboration with states, the government will implement DPI in agriculture over the next three years. This includes conducting a digital crop survey in 400 districts in 2024 and integrating details of 6 crore farmers and their lands into centralized registries.
• Empowering Farmer-Producer Organizations (FPOs): The budget emphasizes promoting startups, cooperatives, and FPOs to improve vegetable supply chains, including aspects such as marketing, storage, and collection.
• Strengthening Agricultural Finance: The government has set an ambitious agricultural credit target of ₹20 lakh crore for 2024-25, aimed at providing farmers with easier access to credit for investing in advanced technologies and sustainable practices.
• Continued Support through the PM-KISAN Scheme: The PM-KISAN Samman Nidhi scheme remains a cornerstone of support for small and marginal farmers, with an allocation of about 1.3% of the total Union Budget.
• Enhancement of Minimum Support Price (MSP): For the 2024-25 marketing season, the MSP for all mandated Kharif crops has been increased, with significant hikes for oilseeds and pulses. This move is intended to encourage the cultivation of these crops and reduce the country’s dependency on imports.
• NABARD’s Role in Rural Development: The National Bank for Agriculture and Rural Development (NABARD) continues to play a pivotal role in providing financial support for agriculture and rural development. NABARD is launching a fund to support agri-based startups and rural enterprises, and it also finances critical rural infrastructure projects like irrigation, roads, and storage facilities this will help in increasing employment in rural areas.