India’s progress and challenges in agriculture and economic reforms compared to China

Source: The Post India’s progress and challenges in agriculture and economic reforms compared to China has been created, based on the article “Ashok Gulati writes: The path to Viksit Bharat runs through fields” published in “Indian Express” on 19th August 2024

UPSC Syllabus Topic: GS Paper 3- Economy-growth, and development

Context: The article discusses India’s progress and challenges as it approaches its goal of becoming a developed nation by 2047. It highlights successes in agriculture, contrasts with China’s faster growth, and emphasizes the need for better policies, particularly in agriculture and nutrition.

For detailed information on India’s Economic Growth and challenges read this article here

What Achievements Has India Made in Agriculture?

1. India’s agricultural GDP grew by an average of 3.6% annually from 2004-05 to 2023-24, reflecting steady progress.
2. The Green Revolution in the late 1960s transformed India’s food production, making the country self-sufficient.
3. India is now a net exporter of agricultural products, with exports worth around $51 billion in the last three years.
4. Key export items include rice, marine products, spices, and buffalo meat.
5. India has achieved food security and is capable of feeding its population, with population growth under 1% annually.

How Does India Compare to China in Agriculture and Economic Growth?

1. Economic Growth: Since the economic reforms in 1978, China’s rural areas saw incomes rise by over 14% annually up to 1984, creating a robust demand base. This contrast sharply with India’s slower economic reforms and lower income growth rates.
2. Agricultural Reforms: China initiated agricultural reforms in 1978, dismantling the commune system and introducing the household responsibility system. These reforms led to a 14% annual increase in farmers’ incomes between 1978 and 1984, fueling demand for goods from China’s Town and Village Enterprises (TVEs).
3. Support for Farmers: China offers substantial support to its farmers through income support per acre and market price supports that are higher than those in OECD countries. In contrast, India’s government support for farmers is effectively negative, with policies that restrict trade and market access while providing subsidies for inputs like fertilizers and power.
4. Impact of Policy Decisions: China’s one-child policy helped accelerate its economic growth and per capita income. India, without such measures, focuses on education, particularly for girls, to manage population growth and boost economic development.

What Should be Done?

1. Implement Policy Changes: India needs bold policy changes, especially in agriculture. Policies need to encourage diversification, like shifting from paddy to pulses in the Punjab-Haryana belt, which requires less water and fertilizer.
2. Increase Farmer Support: Adopt China’s model of substantial income and market price support for farmers. For instance, Chinese farmers received more than 14% income growth annually between 1978 and 1984 due to reforms.
3. Focus on Nutritional Security: India should move from food security to nutritional security. Currently, 35% of Indian children under five are stunted, underscoring the need for improved nutrition alongside basic food availability.
4. Enhance Agricultural R&D and Infrastructure: Invest in agricultural research and development and improve irrigation and land-lease markets. Building efficient value chains for perishables, like the Amul model, is also crucial.
5. Set Milestones for 2047: To achieve “Viksit Bharat@2047,” India must set clear, short-term goals and continuously monitor progress, making course corrections when necessary to ensure long-term success.

Question for practice:

Discuss the differences in agricultural and economic growth strategies between India and China, and their impact on rural incomes.