Economic Survey Urges Comprehensive Reforms in India's Agricultural Sector

The pre-budget Economic Survey conducted by India's finance ministry highlights critical structural issues in India's agricultural sector that may affect the country's economic growth. It recommends various reforms including technological upgrades, better price discovery mechanisms, and sustainable farming practices to ensure long-term agricultural viability and growth.

The pre-budget Economic Survey on Monday emphasized the urgent need for comprehensive reforms in India's agricultural sector, pointing out structural issues that could hinder the country's economic growth. Tabled in Parliament by Finance Minister Nirmala Sitharaman, the Survey identifies critical challenges including the need to manage food price inflation, improve price discovery mechanisms, and address land fragmentation.

According to the Survey, policymakers must balance incentivizing farmers to increase production with keeping food prices within acceptable limits. This balance requires careful policy interventions. The report, prepared by Chief Economic Advisor V Anantha Nageswaran, also highlights the need to reduce disguised unemployment, increase crop diversification, and enhance efficiency in the sector.

The Survey recommends a multi-pronged approach comprising technological upgrades, modern farming practices, enhanced agricultural marketing avenues, price stabilization, and innovation in farming. It stresses the importance of sustainable practices for the long-term viability of the sector, noting that policy reforms over the past decade have laid the foundation for sustained moderate to high growth.

For sustained growth up to 2047 and beyond, bottom-up reforms are necessary, the Survey states. It suggests re-imagining the contours of the primary sector, moving away from the traditional development playbook of transitioning from agriculture to industry and services.