Agriculture-Led Growth: The Key to Achieving India's $5 Trillion Economy

Abstract

With a 263.1 million workforce in the agricultural sector, which is 49.6% of the overall workforce as per the 2011 census, agriculture is the backbone of our economy. However, its share of the GDP is only 18.29% (Report, 2020). By 2030, India's population is projected to be approximately 1.515 billion., with an increase in demand for food grains to 345 million, compared to its demand of 291.95 million tonnes in 2019 (Ajay Barman, 2017). Presently India is the fifth largest economy and certainly moving fast to achieve its goal of a $5 trillion economy by 2025 (Industry, 2018). In the agriculture sector with nearly 50% of the overall workforce, the agricultural sector has a vital role in providing food security, rural employment generation and reduction in poverty for inclusive and sustainable growth (Pawlak, 2020). The study focuses on theoretical literature to highlight salient features of Indian agriculture. The research analyses the share of agriculture and allied sector to the GDP and export of Agri products. The paper also focuses on the problems faced in the agriculture sector and explores potential solutions. The research aims to lay out possible strategies for making Agriculture a trillion-dollar economy. The paper explores the potential of cooperative societies in farming and mechanization. The paper argues that the mechanization of crucial activities, institutionalization of cooperative farming, and promotion of private players in the agriculture sector may improve farmer's income and make agriculture profitable. The paper emphasizes for development of Agro-based industries and accelerates commercialization. This indicates a massive potential for value-addition and processing of farm products, which may lead to many opportunities for investment (both domestic and foreign investment) and growth. Unleashing the potential of agriculture, therefore, assumes priority in realizing the target of a five trillion-dollar economy. This paper summarizes the growth potential and policy reforms in agriculture to help achieve the target of a five trillion-dollar economy.