Indian farm sector performed well but needs re-orientation: Economic Survey

There is a need to upskill and create employment for women in agriculture-related sectors such as food processing, the Economic Survey noted

Indian agriculture has performed well but the sector needs “re-orientation” in the backdrop of certain challenges like adverse impacts of climate change, and rising input costs, the Economic Survey for 2022-23 tabled in Parliament on January 31 said.

The other challenges are fragmented landholdings, sub-optimal farm mechanisation, low productivity, disguised unemployment, and rising input costs, among others.

Also Read | Inflation of 6.8% not too high to deter private consumption, or weaken inducement to invest

“While Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain challenges...,” it said.

Stating that the performance of the agriculture sector remains critical to growth and employment in the country, the Survey said investment in the sector must be encouraged through an affordable, timely and inclusive approach to credit delivery.

It may be noted that more than 75% of rural female workers are employed in the agriculture sector. This implies a need to upskill and create employment for women in agriculture-related sectors such as food processing.

“Here, the self-help groups (SHGs) can play a crucial role in shaping rural women’s potential into concrete developmental outcomes of financial inclusion, livelihood diversification, and skill development,” the Survey said.