INDIAN ECONOMY

AGRICULTURE IN INDIA

Highlights

• India is ranked second worldwide in farm output
• Agriculture accounts for 16.6% of GDP
• Agriculture employs 60% of the workforce
• India has the world’s largest cattle population
• Largest producer of milk, cashews, coconut, tea, ginger, turmeric and black pepper
• Second largest producer of wheat, rice, sugar, groundnut and inland fish
• Third largest producer of tobacco
• India accounts for 10% of world fruit production
• Largest producer of banana and sapota

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Green Revolution in India

• Use of high yield seeds along with increased used of fertilizers and irrigation leading to dramatic increase in production
• Implemented mainly in Punjab, Haryana, western UP 1965-1980
• Increased food grain production by 4 times, milk 6 times, eggs 27 times
• Requires large investment in equipment and enormous quantities of water
• Padma Vibhushan awarded to Dr. Norman Borlaug in 2006 for instituting the Green Revolution. He is considered the Father of the Green Revolution. He also won the Nobel Peace Prize in 1970

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

AGRICULTURAL CREDIT AND INSURANCE

Kisan Credit Card

• Launched in 1998 to provide short-term credit
• Simple, flexible procedures
• Helps buy seeds and fertilizers at farmer’s convenience
• Operated by major nationalized banks
• Includes personal accident insurance coverage

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

National Agricultural Insurance Scheme (NAIS) / Rashtriya Krishi Bima Yojana (RKBY)

• Launched in 2008
• Provides insurance coverage in the event of failure of crop due to natural causes, pests and diseases
• Covers food crops, oilseeds, sugarcane, cotton and potato
• Joint programme of Central and State governments
• 50% subsidy for small and medium farmers
• Implemented by Agriculture Insurance Company of India (combination of NABARD and other nationalized insurance companies)

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Livestock Insurance Scheme

• Launched in 2005
  
• Provides protection to farmers and cattle rearers against loss due to animal death
  
• Covers crossbred and high yielding cattle and buffaloes
  
• Fully funded by the Central government
  
• 50% subsidy
  
• Implemented by livestock development boards of each state
  

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Rainfall Insurance / Varsha Bima

• Launched in 2004
• Provides protection against anticipated shortfall in crop yield due to deficit rainfall
• Implemented by Agriculture Insurance Company of India Ltd. (AIC)

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Weather Based Crop Insurance Scheme (WBCIS)

• Launched in 2003
• Provides protection against loss due to adverse weather conditions including rainfall, frost, temperature etc
• Jointly funded by Central and State governments
• Up to 50% subsidy

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Rainfall Insurance Scheme for Coffee Growers (RISC)

• Launched in 2009
• Protects against loss due to deficit rainfall during blossom and backing periods and excess rains during monsoon period
• Covers Robusta/Arabica variety of coffee in Karnataka, Kerala, TN
• Funded by the Coffee Board (Central government)
• 50% subsidy
• Implemented by AIC
  

AGRICULTURAL SCHEMES AND PROGRAMMES

All programmes fall under the purview of the Ministry of Agriculture unless otherwise noted.

National Food Security Mission

• Launched in Aug 2007
• Objectives:
  • To increase production of wheat, rice and pulses on a sustainable basis to ensure food security of the country
  • Restore soil fertility
  • Employment generation
  • Enhance farm-level economy
• Seeks to disseminate improved technologies and farm practices
• Central Govt. provides 50% subsidy
• Three components: NFSM Rice, NFSM Wheat, NFSM Pulses
• Targeted increase in production: Rice 10 million tonnes, Wheat 8 m t, Pulses 2 m t
• Structure:
  • Chairman: Minister of Agriculture
  • Members: Secretaries of Dept of Agriculture and Cooperation, Finance, Adviser Planning Commission, Agriculture Commissioner

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

National Horticulture Mission

• Launched in 2005
• Objective: provide growth of horticulture and enhance horticulture production
• Promotes use of technology to farmers for high-tech horticulture cultivation
• Promotes diversification from traditional crops to plantations, orchards, vineyards etc
• Funded by Central (85%) and State (15%) governments
• Structure
  • Chairman: Minister of Agriculture
  • Members: Ministers of Commerce, Health, Finance, Food Processing, Industries, Panchayati Raj, Science & Technology, Rural Development

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

National Agriculture Development Program (NADP) / Rashtriya Krishi Vikas Yojana (RKVY)

• Launched in 2007
• Objectives:
  • To incentivise states to increase their investment in agriculture
  • To provide flexibility and autonomy to states in agricultural planning
  • To maximise returns for farmers
  • To reduce yield gaps in important crops
• Fully funded by the Central government, executed by the State governments
• Areas of focus
  • Integrated development of food crops
  • Agriculture mechanization
  • Soil health and productivity
  • Horticulture
  • Animal husbandry
  • Use of technology

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Agricultural Debt Waiver and Debt Relief Scheme 2008

• Launched in 2008
• Covers direct loans by certain commercial banks, rural banks and cooperatives
• For small and marginal farmers the entire eligible amount shall be waived
• For other farmers there will be a one time settlement under which the farmer will be relieved of 25% of the loan amount
• Implemented by NABARD and RBI

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Agri Clinics and Agri Business Centres Scheme

• Launched in 2002
• Agriclinics provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection, market trends, clinical services for animal health etc.
• Agribusiness
  Centres provide input supply, farm equipment on hire etc
• Objectives
  • To make available supplementary sources of input and services to farmers
  • To provide gainful employment to agriculture graduates
  • To create agriculture entrepreneurs
• Example projects:
  • Soil and water testing
  • Pest control services
  • Micro irrigation systems
  • Seed processing units
  • Hatcheries, apiaries
  • Setting up of IT kiosks in rural areas
• Financial support from NABARD

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

National Commission on Farmers

• Constituted in 2004
  
• Chairman Dr. M.S. Swaminathan (instrumental in Green Revolution in India)
  
• Submitted final report in 2006
  
• Suggests measure to enhance productivity, profitability and sustainability of farming in different regions of the country
  
• Suggests measures to attract and retain youth in the agriculture sector
  
• Suggests medium term strategy for food and nutrition security
  
• Resulted in the National Policy for Farmers – 2007
  

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

National Policy for Farmers – 2007

• Focus on economic well being of farmers rather than just production
• Efficiency of water use and maximizing yield per unit of water
• Drought code, flood code and good weather code
• Use of technology to increase productivity
• Agricultural credit and insurance
• Support services for women
• Setting up of farm schools
• Gyan Chaupals to harness the help of IT
• Community foodgrain banks
• National social security system for farmers
• Cabinet Committee on Food Security to be constituted

Keywords: ias, upsc, civil services, study material, general studies, Indian economy

Note: All programmes implemented by the Ministry of Agriculture unless otherwise states

Source: India Development Gateway