P K Mishra, Principal Secretary to Prime Minister Narendra Modi, stated that addressing the issue of smallholder agriculture is crucial to achieving the goal of Viksit Bharat (a developed India) by 2047.

       Speaking at the 19th C D Deshmukh Memorial Lecture on November 28, which was uploaded on the Reserve Bank of India’s (RBI’s) website on Monday, Mishra said, “I would like to argue that the issue of smallholder agriculture needs to be addressed in order to realise our goal of a Viksit Bharat or a developed India by 2047.”

       Mishra highlighted the importance of inclusive, equitable, and sustainable economic growth to achieve developed status. Despite recent progress, the agriculture sector has grown at a slower rate, leading to inequitable growth. He noted that, in many Asian countries, agricultural gross domestic product (GDP) has risen in absolute terms, but its share of total GDP has fallen, while the proportion of agricultural workers remains high. This impacts both income distribution and employment.

       Agriculture’s share in GDP has declined from 42 per cent in 1970–71 to 18 per cent in 2023–24, whereas its share in the workforce has reduced from 70 per cent to 46 per cent during the same period. A study indicates that by 2050, the sector’s contribution to GDP is projected to decrease to about 7 per cent, while its share in the workforce is expected to decline to about 27 per cent.

       Mishra emphasised the critical role of agricultural growth in poverty reduction, especially in rural areas. He cited studies suggesting that small farmers may be more productive than large ones, challenging traditional notions of economies of scale.

       In recent decades, governments at both the central and state levels have implemented initiatives to assist small farmers in improving their economic and livelihood conditions. Autonomous organisations such as the Small Farmers Development Agency (SFDA) and the Marginal Farmers and Agricultural Labour Development Agency (MFAL) were established, and several schemes were launched focusing on smallholders.

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       However, Mishra noted, “There is a need to have a strategy to transform smallholders to become more viable in the sense of having income commensurate with or similar to those in the non-agriculture sector.”

       He highlighted measures such as crop diversification, the use of technology, climate-resilient crop varieties, storage facilities to reduce post-harvest losses, direct farmer-consumer platforms, rural industrialisation, and the establishment of Farmer Producer Organisations (FPOs).

       However, he added, “Our analysis reveals that there is a need to have greater focus on smallholders and formulate a strategy to increase their income.”

       Mishra suggested focusing on diversification towards more profitable crops, livestock, and fisheries. He also proposed exploring new activities, such as producing crops for biofuels and distributed solar power generation on farms, as these could yield higher incomes. Other recommendations included greater use of technology tailored for small farms and a stronger emphasis on non-farm activities in rural areas.

       India’s agriculture is predominantly smallholder-based and is expected to remain so in the foreseeable future. Of the 168 million operational holdings, 88 per cent are small holdings of less than 2 hectares. The average size of operational holdings is slightly less than one hectare. Mishra observed that these trends in the agriculture sector are likely to persist.

       “According to the Vision 2050 prepared by the Indian Council of Agricultural Research (ICAR), by 2050 the sector’s contribution to GDP is projected to decrease to about 7 per cent. Concurrently, its share in the workforce is expected to decline to 27 per cent,” Mishra said.

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