SYMBIOSIS Unit 11 - Transformation of Indian Agriculture, Vision 2020

Prof.
Dhirendra Apte
Symbiosis Centre for Management

Studies
TY BBA : Sem 5 - Fundamentals of Rural

Marketing
Chapter / Unit - 11 :
Transformation of Indian Agriculture, Vision 2020
Prof. Dhirendra Apte
Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing
Chapter / Unit - 11 : Transformation of Indian Agriculture, Vision 2020
Transformation of Agriculture through Better Irrigation :

 While the Government of India is working on the blueprint for
India@2047 to be ‘future ready’, it is important to accelerate India’s
growth and adoption towards new-age agriculture practices with
optimum utilization of resources.
 The average penetration of micro-irrigation in the irrigated area (drip &
sprinkler) is estimated at 17% which is much lesser compared to
countries like Israel (90%), Russia (78%), Spain (75%), the USA (55%)
and Brazil (52%).
 We need to have an ambitious target and align the execution process
to take micro-irrigation coverage to 60-70% in the next 25 years.

 The agriculture policy will accelerate all-round
development and economic viability of
agriculture in comprehensive terms.
 It will focus both on income and creation of
greater on-farm and off-farm job and livelihood
opportunities.
 Farmers will be provided the necessary
support, encouragement and incentives.

AGRICULTURAL TRANSFORMATION IN INDIA
In the last few decades through the process of development,

India has experienced structural transformation, with the
contribution of the agriculture sector in Gross Domestic
Product (GDP) falling to around 15% in 2017 from 51% in
1950.

AGRICULTURAL TRANSFORMATION IN INDIA
In most developed countries, the change in the share of GDP
composition and the share of the labor force engaged in each
sector determine the structural transformation.
Despite the fall in the contribution of the agriculture sector in

GDP, it employs around 50% of the labor force in India. It is
imperative to study how agricultural transformation through
mechanization in India impacts the productivity in the sector,
which further pulls labor to the manufacturing sector.
Transformation of Agriculture through Better Irrigation
 Agriculture continues to be a dominating employment generating
sector and contributes a significant proportion to the country’s GDP.
 Even in pandemic, the sector climbed new heights with record
production of various food grains, exhibiting resilience and ensuring
food security.
 Despite the success in terms of production that has ensured food
security in the country, food inflation and volatility in prices continue
to remain high causing inconvenience to consumers and uneven
income for farmers.

Agricultural Transformation
Agricultural transformation is the process that leads to increased
farm productivity, making farming commercially viable and
strengthening interlinkages with other sectors of the economy.
The key area that require focus is Farmer’s access to financial
resources. Even though there has been an increase in the sales of
tractors all across India giving rise to mechanization in the sector,
it is also important to make mechanized equipment accessible to
all farmers, even the farmers with small and scattered land
holdings.
Mechanization of the agriculture sector is imperative to increase
the productivity of the farmers but it should also occur in an
environmentally-sustainable manner.
 The technology generation will need partnerships with

the advanced institutions in India and abroad.
 As the future technological developments will be
knowledge-and-capital intensive, special efforts will
have to be made to develop competent human
resource through revamping of our agricultural
education system.
Mbl : 8793364914

Focus on renewable energy like solar would ensure
energy security in the agriculture sector as well as in the
rural landscape and address environmental concerns.
Making farmers energy-sufficient would also reduce the
burden on government energy subsidy bills.
Mbl : 8793364914

In the Union Budget 2023-24, the Union Finance

Minister has announced that the agriculture credit
target will be increased to Rs 20 lakh crore with focus
on animal husbandry, dairy, and fisheries.
While the micro-irrigation coverage has benefitted millions of

farmers, the scheme implementation leaves a lot to desire at
the execution level.
�
Mbl : 8793364914

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) :

Launched on 1st July 2015 to implement to expand the cultivated
area for irrigation. The delays in the disbursal of micro-irrigation
subsidies under the PMKSY program ( Pradhan Mantri Krishi
Sinchayee Yojana) are hampering its progress.
Online portal for an end-to-end process execution and visibility,

transparency in the process for fund disbursement, ensuring
checkpoints at various stages and adherence to timelines would bring
the efficiency in subsidy disbursal and support farmers to be debt-free
much conveniently.
�
Mbl : 8793364914

PMKSY program ( Pradhan Mantri Krishi Sinchayee Yojana)
The major objectives of PMKSY are :

 To Achieve convergence of investments in irrigation at the
field level,
 To Expand cultivable area under assured irrigation,
 To Improve on-farm water use efficiency to reduce wastage
of water, To Enhance the adoption of precision-irrigation and
other water saving technologies (More crop per drop),
�
Mbl : 8793364914

Identifying areas and crops to integrate the benefit of micro-

irrigation with structured governance and execution strategy will
help the country climb a newer height of fiscal growth.
To do so, the government may create 5 years bucket of

appropriate execution and monitoring roadmap for the next 25
years backed by adequate budgetary support consistently.
�
Mbl : 8793364914

Infrastructure status would help the micro-irrigation manufacturer

(95% of which comes under MSME) in reduced operating costs,
thereby accelerating the industry growth as well as bring the
equipment cost down for the farmer community.
Aligning different schemes together for exponential benefit –

Solar and Micro-irrigation, Agriculture alongside Solar
installations, and others
Mbl : 8793364914

Focus on renewable energy like solar would ensure energy security in

the agriculture sector as well as in the rural landscape and address
environmental concerns.
Making farmers energy-sufficient would also reduce the burden on

government energy subsidy bills.
Solar installation-friendly agriculture would help farmers with

reduced operational costs, boost land utilization and improve
overall income.
Mbl : 8793364914

Diversification programs to increase crop productivity
 While12% of the cropped area under Fruits & Vegetables (F&V)

leads to 24 percent in value terms, 13% area under oilseeds which
gives only 6 percent in value terms because of lack of scalability.
 Policymakers will have to consider promoting domestic oilseeds
and oil palm cultivation with higher productivity measures to
address the demand cycle.
 Similarly, disrupting rice cultivation that covers more area and
water utilization through drip technology would improve yield, save
water and reduce carbon emissions. Drip irrigation adoption also
have the potential to facilitates crop diversification thus, making a
direct impact on farmer incomes.
�
Mbl : 8793364914

Focus on creating infrastructures to support innovation and

digitalization in Agriculture
Special focus and fund allocation in the upcoming budget for
infrastructure in rural areas would support the digitalization of
agriculture and put the sector on the fast track.
Currently, India is spending less than 1% of Agri GDP in R&D.

An Agri innovation fund, which supports ag-tech solutions,
start-ups, and digitalization at different levels of the Agri value
chain can transform the agriculture economy in the future.
Mbl : 8793364914

Interest subsidy on agriculture for long term loans

Access to credit remains one of the critical elements in a
sustainable and more importantly a growing ecosystem.
Interest subsidy on agriculture for long-term loans to help

farmers with continual investment in farm mechanization and
building state-of-the-art infrastructure would go a long way to
develop a sustainable model in agriculture.
Credit Guarantee Fund Scheme for adopting micro-irrigation

similar to CGTMSE for MSMEs will be helpful where initial
support can be provided by the government.
Mbl : 8793364914

Special budgetary assistance for Micro Irrigation to State

Government to overcome COVID impact
The financial strain caused by the COVID-19 pandemic had
compelled many states across the country to slash the budget for
micro-irrigation.
The policymakers have considered supporting the states through

an additional corpus of funds either by direct special assistance
program or increasing the existing Micro Irrigation Fund (MIF) set
up under NABARD to facilitate the states in mobilizing resources
for expanding coverage of micro-irrigation.
Mbl : 8793364914

 Sustainable Technology
 The Powerland Agro Tractor Vehicle
The progress in the mechanization of the agricultural sector, the

challenges that farmers face due to the high cost of input and machinery
acts as an obstacle.
To make the agricultural sector more productive, there is an immediate

need to focus on sustainable mechanization and make it accessible.
The agriculture sector in India is highly subsidizes, and as a result, it is

important to invest in technology that is efficient and environmentally
sustainable.
Conservation of water and electricity should be a priority and should
receive encouragement from the state.
Mbl : 8793364914

End of Unit 11
Thanks

Dhirendra Apte
Symbiosis Center for Management Studies


Dhirendra Apte

TY BBA : Sem 5 Fundamentals of Rural Marketing
Dhirendra Apte

What is Rural Marketing ?
Dhirendra Apte

Dhirendra Apte

TY BBA : Sem 5 Fundamentals of Rural Marketing

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Prof.

Symbiosis Centre for Management

TY BBA : Sem 5 - Fundamentals of Rural

Symbiosis Centre for Management Studies

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

Chapter / Unit - 11 : Transformation of Indian Agriculture, Vision 2020

Transformation of Agriculture through Better Irrigation :

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

In the last few decades through the process of development,

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

Despite the fall in the contribution of the agriculture sector in

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

Symbiosis Centre for Management Studies

TY BBA : Sem 5 - Fundamentals of Rural Marketing

 The technology generation will need partnerships with

Symbiosis Centre for Management Studies

Symbiosis Centre for Management Studies

In the Union Budget 2023-24, the Union Finance

While the micro-irrigation coverage has benefitted millions of

Symbiosis Centre for Management Studies

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) :

Online portal for an end-to-end process execution and visibility,

Symbiosis Centre for Management Studies

The major objectives of PMKSY are :

Symbiosis Centre for Management Studies

Identifying areas and crops to integrate the benefit of micro-

To do so, the government may create 5 years bucket of

Symbiosis Centre for Management Studies

Infrastructure status would help the micro-irrigation manufacturer

Aligning different schemes together for exponential benefit –

Symbiosis Centre for Management Studies

Focus on renewable energy like solar would ensure energy security in

Making farmers energy-sufficient would also reduce the burden on

Solar installation-friendly agriculture would help farmers with

Symbiosis Centre for Management Studies

 While12% of the cropped area under Fruits & Vegetables (F&V)

Symbiosis Centre for Management Studies

Focus on creating infrastructures to support innovation and

Currently, India is spending less than 1% of Agri GDP in R&D.

Symbiosis Centre for Management Studies

Interest subsidy on agriculture for long term loans

Interest subsidy on agriculture for long-term loans to help

Credit Guarantee Fund Scheme for adopting micro-irrigation

Symbiosis Centre for Management Studies

Special budgetary assistance for Micro Irrigation to State

The policymakers have considered supporting the states through

Symbiosis Centre for Management Studies

The progress in the mechanization of the agricultural sector, the

To make the agricultural sector more productive, there is an immediate

The agriculture sector in India is highly subsidizes, and as a result, it is

Symbiosis Centre for Management Studies

Symbiosis Centre for Management Studies

Symbiosis Center for Management Studies

Prof. Dhirendra Apte

Symbiosis Center for Management Studies

Symbiosis Center for Management Studies