Agriculture sector study: critical issues and strategic options
Agriculture continues to be a fundamental instrument for sustainable development and poverty reduction in India. India resides in its villages and according to the 2001 census 72.2 per cent of the people are in rural areas. The agriculture sector contributes only about 18 per cent of the total Gross Domestic Product (GDP). Indian agriculture has made rapid strides from food shortages and imports to self-sufficiency and exports. It has moved from subsistence farming to intensive and technology led cultivation. Agriculture is at the core of socio economic development of the country. Growth of other sectors and overall economy depends on performance of agriculture to a considerable extent. Not only it is a source of livelihood and food security for a large population of India but also has a special significance for low income, poor and vulnerable sections. However, several constraints such as preponderance of small and marginal holdings accounting for about 82 per cent of total holdings, imperfect market conditions and lack of backward and forward linkages have contributed to the stagnation of the sector.