Agriculture plays a vital role in the Indian economy. For the first two decades of post-Independence, the contribution of agriculture to the gross domestic product ranged between 48 and 60%. Around 60% per cent of the rural households still depends on agriculture. 1. Food security: * India, with a population of 1.3 billion, accounts for 17.7 percent of world's population and thus ensuring its food and nutritional security would play a major role in reducing global hunger and malnutrition. * Agriculture, is central to ensure Food and nutrition security as it is a primary source of food and fodder, and sets the foundation for social and economic development of a country. 2. Source of Livelihood: * Agriculture, with its allied sectors, is the largest source of livelihoods in India employing more than 40% of the total workforce. * 70 percent of rural households still depend primarily on agriculture for their livelihood, with more than 80 percent of farmers being small and marginal. * As Indian economy has depressed during the ongoing pandemic period, agriculture is still the largest employment source and a significant piece of the overall socio-economic development of India. * It is imperative to promote allied sector activities to provide sustainable secondary source of income and to protect farmers from income shocks. * Livestock sector has emerged as a sustainable secondary source of income and generating gainful employment during seasonal unemployment, particularly to small and marginal farmers. * Indian fisheries sector provides livelihood to 16 million fishing community. Presently, as in 2018-19, only 58% of inland fisheries and 71% of marine fisheries potential is harnessed. So there is lot of untapped potential and scope of creating employment opportunities is huge. 3. Contribution to National revenue * The share of agriculture in gross domestic product (GDP) has reached almost 20 percent for the first time in the last 17 years, making it the sole bright spot in GDP performance during 2020-21, according to the Economic Survey 2020-21. * During 2020-21, while the GVA for the entire economy contracted by 7.2 percent, growth in GVA for agriculture maintained a positive growth of 3.4 percent. * With Govt's efforts on doubling farmer's income and boosting India's export potential, the share of agriculture in GDP is expected to rise. 4. Foreign Exchange * As per WTO's Trade Statistics, share of India's agricultural exports and imports in the world agriculture trade in 2017 was 2.27% and 1.90%, respectively. * The agricultural exports as a percentage of India's GDP has increased from 9.4% in 2017-18 to 9.9% in 2018-19. * If there is smooth development practice of agriculture, imports are reduced while export increases considerably, will help in saving foreign exchange and maintaining positive Balance of payment. * This amount may be well used to import other essential inputs, machinery, raw material, and other infrastructure that is helpful for the support of country's economic development. 5. Secondary Industries * The main source of raw materials to major industries such as textiles, sugar, tobacco, edible as well as non-edible oils is agriculture. * Moreover, many other industries such as processing of fruits and vegetables, beverages get their raw material mainly from agriculture. * Bulks of agricultural products are transported by railways and roadways from farm to factories. A large share of internal trade in agricultural products provides indirect employment to people and revenue to states. ISSUES- 1. Decreasing land : Area under agriculture has been shrinking, it reduced from 159.5 million hectares (mn ha) in 2010-11 to 157 mn ha in 2015-16. 2. Increase in Land Holdings: The number of operational holdings has been rising owing to increasing population. Due to small holdings caused by fragmentation, small and marginal farmers are forced to sell their produce at the farm gate itself. 3. No Access to Modern Technology: Bringing new technologies and practices to such a large number of small holders scattered over a vast countryside and integrating them with the modern input and output markets is a huge challenge for Indian agriculture. 4. Minimum support prices : The government declaration of Minimum support prices do not increase at par with increase in cost of production. Government has come up with many schemes to aid farmers like PM KISAN scheme to provide income support, PM Fasal Bima Yojana to provide crop insurance, PM Kisan Maandhan Yojana to provide pension support and many others. Intent is well thought but lacks proper implementation at grassroot level. Combined and coordinated efforts from Centre, State and Private sector would go a long way in increasing incomes of farming households, empowering women, strengthening agricultural diversity and productivity, and designing careful price and subsidy policies that should encourage the production and consumption of nutrient rich crops.