India Economic Survey 2024-2025, The Economic Survey recommends a significant policy change in India’s agriculture sector for the 2024–2025 fiscal year. This reform aims to limit the overproduction of grains while encouraging the production of edible oils and pulses, two essential commodities that the country imports to meet its domestic demand.
In this year’s survey, which was tabled in Parliament on January 26, the government has stressed the untapped potential within the agricultural sector, which, despite various growth initiatives, still holds substantial room for improvement. The document calls for a better alignment of agricultural policies with market demands, ensuring that farmers receive the right price signals while also protecting vulnerable households.
Why a Change in Policy Is Required
Although India’s agricultural sector has grown steadily, more focused policy changes are still required. India Economic Survey 2024-2025 main recommendation is to abandon the emphasis on cereal output, which has frequently led to overproduction. At the same time, it advocates for the encouragement of pulses and edible oils production, both of which are heavily imported to fill the domestic supply gap.
According to the poll, these crops are not only crucial for the nation’s food security but also have a lower environmental impact. Edible oils and pulses are more sustainable than farming methods that mostly rely on cereals since they use less water and electricity.
Analysing India’s Agricultural Performance
India’s agriculture has proven to be resilient. Despite many obstacles, the sector developed at an average rate of 5% between fiscal years 2017 and 2023. The sector recovered and grew by 3.5% in the second quarter of fiscal year 2025 after previous quarters had growth as low as 0.4% to 2.0%.
According to FY24 estimates, the agriculture industry supports over half of the population, or 46.1%, and contributes around 16% of the country’s GDP. Productivity is one area where it remains neglected despite its significance.
Proposed Significant Policy Changes
The India Economic Survey 2024-2025 states that to increase agricultural productivity, three important policy changes are needed:
Market Mechanisms for Price Risk Hedging
It is necessary to have market mechanisms for price risk hedging systems in place that allow farmers to defend against price threats. One method to do this would be to improve market mechanisms that give farmers access to real-time pricing data and tools to protect them from price volatility.
Avoiding Overuse of Fertiliser
In addition to degrading soil health, overuse of fertilizers has regularly put a strain on water supplies in India. A more sustainable approach that prioritizes organic farming methods and efficient fertilizer use is needed to protect the environment and increase crop yields at the same time.
Discouraging Water and Power-Intensive Crops
Certain crops, especially cereals like rice and wheat, require high levels of water and power. The Economic Survey suggests that these crops be dropped in favor of more resource-efficient alternatives, such as pulses, especially in regions where water scarcity is a significant issue.
Challenges: Climate Change and Water Scarcity
Even if policy reform is crucial, the poll also addresses the barriers to agricultural growth. Climate change has become a major issue due to its effects on crop yields and agricultural production. In many parts of India, the growing issue of water scarcity is making farming more challenging.
The study suggests targeted programs that prioritize water-saving techniques, the development of drought-tolerant crop types, and the promotion of sustainable farming methods in order to solve these problems.
The Allied Sectors’ Expanding Role
Fishing, dairying, and animal husbandry are all becoming more and more significant for diversifying agricultural income. Because of these sectors, farmers are less reliant on growing crops alone and have access to other sources of income. Additionally, these related enterprises offer chances for food security and rural development.
India Economic Survey 2024-2025 importance of investing in these sectors to increase agricultural productivity overall is emphasized by the Economic Survey. It also calls for a greater focus on the food processing industries to reduce post-harvest losses and increase the agriculture sector’s value-added contribution to the economy.
Infrastructure and Technology: The Secret to Transformation
The survey highlights how technology is changing agriculture in India. A key area for expansion is the use of digital technology, with sites such as e-NAM (National Agriculture Market) acting as models for enhancing farmers’ access to markets. Farmers may make better judgments by using digital platforms to communicate with buyers, monitor pricing, and get advice.
Additionally, improving agricultural infrastructure—such as cold storage facilities, rural roads, and market links is essential for making agriculture more efficient and profitable. Better infrastructure will not only help in reducing post-harvest losses but will also make it easier for farmers to access markets and get fair prices for their produce.
Government Programs and Their Effects
The government has already made improvements to the agriculture sector through a number of programs. For instance, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) project has provided direct income support to almost 11 crore farmers. Additionally, as of October 31, 2024, 23.61 lakh farmers had registered for the Pradhan Mantri Kisan Maandhan Yojana (PMKMY) pension plan.
These initiatives have been successful in supporting farmers financially, especially in hard times, and encouraging them to adopt better farming practices.
The Imperative of Private Sector Investment
India Economic Survey 2024-2025, Despite government initiatives, private-sector investment in agriculture is becoming increasingly important. The public sector is unable to supply the significant funding needed to modernize food grain storage systems, especially in isolated and hilly regions. Collaboration between the public and private sectors can lead to the transformation of storage systems and the generation of creative solutions for boosting efficiency.
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Conclusion
The India Economic Survey 2024-2025 offers a comprehensive roadmap for transforming the agricultural landscape in India. India can overcome its agricultural difficulties and transition to a more robust and effective farming system by lowering its over-reliance on crops that consume a lot of water and electricity, encouraging the use of sustainable farming methods, and reorienting its emphasis from the production of cereals to that of pulses and edible oils.
Many essential components are needed for this shift, such as more funding for infrastructure, targeted interventions, changes to policies, and adoption of new technologies. With the right approach, India can leverage the agricultural sector’s vast potential to provide food security, environmental sustainability, and future economic growth.