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Empowering Smallholder Agriculture in India for a Developed Nation

Addressing the 19th C.D. Deshmukh Memorial Lecture on November 28, P.K. Mishra, Principal Secretary to Prime Minister Narendra Modi, emphasized the pivotal role of smallholder agriculture in realizing India’s vision of becoming a developed nation (Viksit Bharat) by 2047. The lecture, uploaded to the Reserve Bank of India’s (RBI) website on Monday, underscored the necessity of inclusive and sustainable growth to drive equitable economic progress.

Challenges of Smallholder Agriculture in India

Mishra pointed out that while the agricultural sector has made significant strides, its growth remains comparatively slow, leading to uneven economic development. He highlighted the concerning trend observed across many Asian nations: despite an increase in agricultural GDP in absolute terms, its share of the total GDP has declined. In India, agriculture’s GDP share has fallen from 42% in 1970–71 to 18% in 2023–24. By 2050, projections suggest it may drop further to just 7%, with its workforce share shrinking from 46% to 27%.

This shift, according to Mishra, poses critical challenges for income distribution and employment, particularly in rural areas. He argued that smallholder farmers, who currently constitute 88% of India’s 168 million operational holdings, require urgent attention to secure livelihoods comparable to those in non-agricultural sectors.

Strategic Interventions for Smallholders

Mishra called for a multi-faceted approach to transform smallholder agriculture into a viable and sustainable livelihood. His recommendations included:

  • Diversification into more profitable crops, livestock, and fisheries.
  • Adoption of advanced technologies and climate-resilient crop varieties.
  • Infrastructure development, such as post-harvest storage facilities.
  • Direct marketing platforms connecting farmers with consumers.
  • Promotion of non-farm rural activities, such as rural industrialization.
  • Focus on alternative income streams, including biofuel crop production and distributed solar power generation.
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The lecture also emphasized the critical role of Farmer Producer Organizations (FPOs) in empowering small farmers and suggested targeted government policies to enhance their productivity and profitability.

The Path Forward

Drawing attention to India’s small average operational holding size of less than one hectare, Mishra stressed that smallholders are likely to remain the backbone of Indian agriculture for the foreseeable future. He cited findings from the Indian Council of Agricultural Research’s Vision 2050, which outlines strategies for navigating these structural trends.

Mishra concluded by urging a greater focus on improving smallholder incomes through strategic interventions and collaborative efforts. He emphasized that achieving Viksit Bharat by 2047 hinges on creating an agricultural framework that is inclusive, resilient, and equitable.

This comprehensive vision serves as a call to action for policymakers, stakeholders, and the agricultural community to address the evolving challenges of smallholder agriculture and secure India’s economic aspirations.

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