Comeback of krishi in Bharat

The survey, commissioned by the National Bank for Agriculture & Rural Development (NABARD), defined an “agricultural household” arsenic 1 that (i) reported a full worth of nutrient from farming exceeding Rs 6,500 (be it cultivation of tract and horticulture crops, livestock and poultry rearing, oregon aquaculture, sericulture and apiculture); and (ii) had astatine slightest 1 subordinate who was self-employed successful specified activities during the notation twelvemonth (July 2021 to June 2022). In the 2016-17 survey, the threshold cut-off worth of nutrient was Rs 5,000.

More krishi successful Bharat

The stock of agrarian households identified arsenic agricultural, based connected the supra definitions, has gone up for astir each states betwixt 2016-17 and 2021-22. (see Table)

Also, the all-India mean monthly income of cultivation households, astatine Rs 13,661 successful 2021-22, was much than the Rs 11,438 for non-agricultural agrarian households. In the 2016-17 survey, too, cultivation households earned a higher mean monthly income (Rs 8,931) compared with their non-agricultural agrarian counterparts (Rs 7,269).

Within cultivation households, the publication of cultivation and carnal husbandry to full income was implicit 45% successful 2021-22, up from 43.1% successful 2016-17. This accrued stock of income from farming activities was seen for cultivation households crossed astir size classes of onshore possessed: from 23.5% to 26.8% for those with little than 0.01 hectare, from 38.2% to 42.2% for those with 0.41-1 hectare, from 52.5% to 63.9% for those with 1.01-2 hectares, and from 58.2% to 71.4% for those with much than 2 hectares.

Simply put, the proportionality of households successful agrarian India reliant connected agriculture arsenic a livelihood root has registered a crisp summation betwixt 2016-17 and 2021-22. Even for cultivation households, the income from farming has gone up arsenic a stock of their wide income. There is correspondingly a smaller stock of income coming from non-farm sources (such arsenic government/private jobs, self-employment, wage labour, rent, deposits and investments), which applies to each onshore size categories.

The caller period, successful different words, has witnessed more, not less, of krishi (agriculture) successful agrarian India oregon Bharat. Not lone is determination a higher stock of cultivation households, they are besides accruing much income from farms.

Impact of Covid-19?

The notation twelvemonth (2021-22) for the latest survey was 1 that followed the Covid-induced lockdowns. The interaction of the restrictions connected economical activity, imposed successful the aftermath of the pandemic’s archetypal and 2nd waves, whitethorn good person been reflected successful the survey’s findings. While the curbs were afloat lifted from July 2021, the economical scars took clip to heal.

Agriculture-related activities were specifically exempted from the lockdowns. Since the workplace assemblage didn’t endure the disruptions that the remainder of the system did — and India besides had 4 consecutive bully monsoon years from 2019 — the 2021-22 survey findings mightiness overestimate agriculture’s stock successful agrarian livelihoods and incomes. Comparisons with the 2016-17 survey should, therefore, beryllium made keeping this successful mind.

But determination is besides an further information root that points to Indians progressively returning to, alternatively than leaving, farms.

According to the National Sample Survey Office’s Periodic Labour Force Surveys (PLFS), agriculture engaged 64.6% of the country’s workforce successful 1993-94. That stock fell to 58.5% successful 2004-05, 48.9% successful 2011-12, and a debased of 42.5% successful 2018-19. Thereafter, a reversal of inclination has taken place, with the workplace sector’s stock of the employed labour unit rising to 45.6% and 46.5% successful the 2 pandemic-affected years of 2019-20 and 2020-21 respectively (the PLFS notation twelvemonth is July-June; Covid archetypal struck successful March 2020).

The paradox

The important constituent to enactment is that agriculture’s stock has remained elevated adjacent aft 2021-22, contempt the system coming retired of the pandemic, and signaling an mean yearly GDP maturation of 8.3% successful the 3 years ended 2023-24. The latest ratio of 46.1% for 2023-24 is mode supra the pre-pandemic debased of 42.5% successful 2018-19. (see Chart)

The supra inclination reversal is arsenic disposable successful agrarian areas. Agriculture employed 57.8% of the Indian agrarian workforce successful 2018-19, which climbed to 61.5% successful 2019-20 and 60.8% successful 2020-21. That dropped to 59% successful 2021-22 and 58.4% successful 2022-23, but lone to soar again to 59.8% successful 2023-24.

The accrued dependence connected agriculture for employment and livelihoods — borne retired some by the NABARD and PLFS information — successful an system that has expanded implicit 1.4 times successful changeless rupees betwixt 2016-17 and 2023-24, is simply a paradox requiring immoderate explanation. It whitethorn partially person to bash with the deficiency of jobs successful manufacturing, which employed lone 11.4% of India’s workforce successful 2023-24, down from 12.6% successful 2011-12 and 12.1% successful 2018-19.

Manufacturing’s stock of employment successful 2023-24 was adjacent beneath that of trade, hotels & restaurants (12.2%) and operation (12%). The question of surplus labour successful agriculture is occurring, if astatine all, not from farms to factories. Instead, it is to sectors that thin to person rather akin employment characteristics arsenic agriculture — having debased marginal productivity (output per worker), paying conscionable supra subsistence wages, and mostly informal.

As per the PLFS information for 2023-24, the states with the highest stock of their labour unit employed successful agriculture included Chhattisgarh (63.8%), Madhya Pradesh (61.6%), Uttar Pradesh (55.9%), Bihar (54.2%), Himachal Pradesh (54%), Rajasthan (51.1%) and Jharkhand (50%). Among the ones with comparatively debased shares were Goa (8.1%), Kerala (27%), Punjab (27.2%), Haryana (27.5%), Tamil Nadu (28%) and West Bengal (38.2%).

The reasons for an economy, whose size has grown from $1.82 trillion successful 2011 to $2.29 trillion successful 2016 and $3.55 trillion successful 2023 (World Bank data), having to beryllium much connected agriculture for employment should beryllium a taxable of statement among economists.