India ranks as the sixth largest economy in the world, yet agriculture remains the primary livelihood source for a large share of its population. Although its contribution to the national GDP has fallen to around 14%, the sector continues to play a foundational role, especially in rural areas. Employing over 45% of the workforce, agriculture supports millions of households and underpins vital allied industries such as dairy, poultry and fisheries. Its importance goes beyond economics, playing a central role in rural development by influencing infrastructure growth, access to education and overall quality of life. Thus, revitalizing Indian agriculture is critical for inclusive national progress.
Declining Share Amid Structural Shifts
Several factors contribute to the declining economic share of agriculture. India’s rapid growth in industrial and service sectors attracting higher investments and yielding greater value addition has outpaced agriculture’s expansion. At the same time, the sector struggles with stagnating productivity, largely due to limited adoption of scientific practices and modern technology. The fragmentation of landholdings due to population pressures and inheritance laws has made mechanized and large-scale farming difficult. Adding to these structural concerns is the growing pressure from climate variability, water scarcity and soil degradation, all of which collectively threaten sustainable agricultural productivity.
Climate Change and Environmental Pressures
Climate change poses a serious challenge to Indian agriculture, affecting not just yields but the viability of certain crops and regions. Rising temperatures are expected to reduce wheat yields by 4–5% for every 1°C increase, with rice and maize likely to suffer similar declines. Without climate adaptation, rainfed rice yields could plummet by up to 47% by 2080. Erratic monsoon patterns are responsible for over half of India’s irrigation that have led to delayed sowing, waterlogging and widespread yield losses. Increasing instances of extreme weather including droughts, floods and cyclones have damaged millions of hectares, especially in vulnerable states like Punjab, Haryana, Maharashtra, Bihar and Assam. Simultaneously, climate stress has led to accelerated soil degradation, increased salinity in coastal areas and depletion of essential nutrients. Over extraction of groundwater, especially in regions like Gujarat and Rajasthan, further threatens the long-term sustainability of irrigation. Rising humidity and warming temperatures have also led to frequent pest attacks and crop diseases, compounding the threat to food security.
Gaps and Limitations in Policy Framework
India’s agricultural policy framework includes tools like the Minimum Support Price (MSP), input subsidies and loan waivers, all aimed at offering financial security and promoting agricultural sustainability. However, these tools often have limitations. While MSP provides price stability, it may inadvertently encourage mono-cropping and discourage biodiversity, weakening ecological resilience. Similarly, input subsidies can lead to overuse of fertilizers and water, harming soil health and distorting markets. Loan waivers, while offering temporary relief, often result in reduced credit discipline and restrict access to future institutional finance. The recurring implementation challenges and lack of integrated policy design weaken these interventions’ long-term effectiveness, demanding a more holistic, targeted and region-specific policy approach.
Technological Transformation is a Ray of Hope
Amid these challenges, the rise of smart and precision farming offers a powerful glimmer of hope. Innovations powered by the Internet of Things (IoT), big data and automation are revolutionizing agriculture globally. The precision agriculture market, for instance, is projected to exceed $26 billion by 2030, up from around $8 billion in 2021. These technologies are helping address fundamental concerns related to productivity, sustainability and resource efficiency. Studies show that adopting precision agriculture has improved crop yields by about 4%, reduced fertilizer use by 7%, herbicide usage by 9% and fossil fuel consumption by 6%. For a country like India, where farming is still largely reliant on traditional methods, such innovations offer a transformative path forward.
Digital Tools and Real Time Insights
The Indian agricultural sector suffers from a persistent lack of timely information. Here, technology can play a critical role in bridging the information divide. Real-time data on weather forecasts, soil health and market prices can empower farmers to make better crop-related decisions, reducing risks and improving yields. Tools like drones and satellite-based monitoring can be used for farm mapping, helping identify stressed areas early and enabling targeted intervention. Automated irrigation systems can ensure optimal water usage and prevent wastage. Moreover, the adoption of mobile-based advisory platforms allows farmers to access expert guidance, fostering improved agronomic practices.
Improving Market Access and Supply Chains
Technology also holds the key to strengthening India’s weak agricultural supply chains. By enabling direct connections between farmers and markets, digital platforms can reduce the role of intermediaries, thus enhancing farmer income and improving transparency. Efficient supply chains can lower post-harvest losses, improve storage and distribution and ensure better pricing for produce. However, achieving this level of efficiency and integration requires foundational infrastructure such as rural internet access, affordable smartphones and digital literacy areas that still pose major challenges for small and marginal farmers.
Making Innovation Inclusive
While the promise of agri-tech is immense, realizing its potential requires a deliberate focus on inclusivity. Small and marginal farmers who form the majority in India face significant barriers in accessing these technologies. These include financial constraints, lack of awareness, poor infrastructure and digital illiteracy. Thus, bridging this divide requires concerted efforts from the government, private sector and civil society. Public-private partnerships can play a key role in building rural digital infrastructure, developing farmer training programs and offering financial incentives for technology adoption. Additionally, designing low-cost, scalable solutions tailored to the specific needs of smallholders is essential for inclusive growth.
Towards a Resilient and Sustainable Future
The path forward for Indian agriculture lies in making it resilient, sustainable and inclusive. Future food systems must not only ensure food security but also address nutritional needs, improve farmer incomes and safeguard the environment. This means reimagining policies to integrate nutrition goals, encouraging crop diversification and boosting value addition through agri-processing and branding. At the same time, preserving agro-biodiversity, promoting renewable energy use in farming and encouraging organic and climate-resilient agriculture are key to long-term sustainability. Investments in education and capacity building are equally important to nurture the next generation of agricultural innovators and professionals who can drive transformation from the ground up. Robust monitoring and evidence-based policymaking will be essential to track progress and make timely course corrections.
The Moment of Transformation
India’s agricultural sector is at a critical juncture. The challenges are many such as climate stress, policy inefficiencies and outdated practices, yet there are opportunities too. With the right mix of innovation, investment and inclusive policy design, Indian agriculture can be transformed into a future-ready ecosystem that uplifts farmers, ensures food and nutritional security and supports environmental sustainability. The task is urgent and the time for action is now.
–Amit Gupta
(The author is CEO and promoter of Agrifields DMCC in Dubai. He has emerged as a transformative force in the agrochemical industry)
