Agricultural Crisis in India: An Economic Assessment of Challenges and Outcomes
Sushma1
1 Assistant Professor in Govt. Girls College, Kisangarh Bass (Khairthal-Tijara), 301405
Email Address: sushma80535@gmail.com
Abstract:
Agriculture is very important for India because it gives livelihood to almost half of the population, but it only contributes around 17–18 percent to GDP. Even after many government schemes and new technology, the sector is still facing a lot of problems. This study, tries to look at the main financial and structural issues faced by farmers and how it affects rural life. The study is based on secondary data. Data about farm income, debt, and household spending is taken from NSSO Agricultural Household Surveys (2013, 2019 & 2021). Information on credit flow and institutional loans comes from RBI Agricultural Credit Statistics (2005–2024). Data about agricultural GDP, crop production, and growth rates comes from Economic Survey, and NITI Aayog reports (2022–23) give details about regional differences and policy effects. FAO and World Bank databases are used to compare yields with other countries. Together, this data helps understand both national and state-level trends in agriculture. To analyze the data, simple descriptive stats, trend analysis, regression, cost–benefit analysis, and income inequality measures are used. Trend and CAGR are used to see how production and income have changed from 2004–05 to 2023–24. Regression shows how farm income depends on cost of cultivation and credit access. Cost–benefit analysis checks how profitable major crops are. Gini coefficient is used to see how income is spread among different farmers. The results show that even though total food grain production increased from 182 million tonnes in 2004–05 to 320 million tonnes in 2022–23, farmers’ income did not increase much. NSSO (2021) says about 45 per cent of households are in debt, and around 25 per cent earn less than their monthly expenses, which causes financial stress and sometimes migration. States like Punjab and Haryana, with better irrigation and MSP support, earn more, while Bihar, Odisha, and Jharkhand farmers earn less. Also, agriculture’s share in GDP fell from 23.5 per cent in 2004–05 to 17 per cent in 2023–24, but still more than 40 per cent of people work in it, causing disguised unemployment and inequality. Climate change, irregular rain, and falling groundwater make things worse.
The study concludes that while programs like PM-KISAN, MSP, and crop insurance help a bit, bigger changes are needed in markets, infrastructure, and farming methods. More public investment in irrigation, storage, and agro-processing can reduce differences between states and increase income. To make agriculture strong and sustainable, India needs a mix of income support, better technology, and institutional reforms.
Keywords: Agricultural Crisis, Farmer Income, Debt, Productivity, Rural Economy.
DOI link – https://doi.org/10.69758/GIMRJ/2601I01VXIVP0002
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