We take a look at current trends in Indian agriculture and how digitization is being brought into this primary economic sector of the country.
Agriculture plays a vital role in the Indian economy as well as in the lives of Indians. Due to a subtropical climate, the country cultivates different kinds of crops throughout the year. It has also made India one of the global powerhouses for food production.
In the post-independence era, India used archaic methods of cultivation that consumed more resources and were inefficient. Then came the Green Revolution in the sixties. M.S. Swaminathan spearheaded this revolution, allowing the country to witness a boost in efficiency as well as in crop production. It helped India become self-sufficient in the food supply. It also led to India’s present status as a global exporter of different agricultural products.
Today, with digitization making a mark in eCommerce, it can help make changes in this primary sector as well. It can help bring a positive impact on yield, productivity as well as quality. All this revolves around digitizing the different processes, and supply and demand chains of agriculture. It would also mean that India would be embracing a digital revolution in this sector’s workings and processes.
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Current Economic Trends of the Indian Agricultural Sector
This sector, as with other economic sectors in the country, has experienced good growth overall, especially over the last decade. Even during the COVID period, the agricultural sector experienced positive growth.
Various statistics showcase growth trends in Indian agriculture over the last few years:
- The agricultural sector in India has seen a growth rate of about 3.6 percent in the year 2020. After that, the growth rate increased by 0.3 percent in 2021. It was mainly due to several government-led schemes that were introduced, notably Atma Nirbhar Bharat (ANB) Abhiyan.
- Gross Value Added or GVA contribution of the agricultural sector has been around 18 percent. It is as per long-term trends and estimates. This share, as per the overall Indian economy, has increased, to 18.8 percent in the year 2021. In 2020 this share was about 20.2 percent.
- Total employment in this sector, as per World Bank records, is 41.5% of the total population, as of 2020. Hence, it remains one of the largest sectors in terms of employment for the country.
- This sector has seen steady growth over the years. For instance, in 2019 agriculture contributed 17.8 percent to the GDP of the country; that increased to nearly 20% in the year 2020.
- Exports have also grown consistently over the years, especially of agricultural produce. For instance, in 2020 total exports in this sector were US$41.3b. The amount then increased to US$49.6b in 2021.
- Fourth Advance Estimates data show that the total production of food grains has had substantial growth. The country produced grains of about 297.5m tons of in 2019. It increased to the amount of 308.65m tons in the year 2020.
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