Conservation of Hampi, India-US Defence Ties, The road to 2047 for Indian agriculture

(General Studies III – Economy Section – Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Inclusive Growth and issues arising from it. Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices; Public Distribution System – Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security; Technology Missions; Economics of Animal-Rearing. )

As India approaches its centennial year of independence in 2047, the goal of becoming a developed nation requires a significant increase in per capita Gross National Income (GNI) to about six times the current level, for which agriculture will be a critical sector.
• Despite engaging nearly 46% of the workforce, agriculture contributes only about 18% to the GDP highlighting a structural imbalance that needs addressing.
• Transforming Indian agriculture into a more productive, sustainable, and technologically advanced sector is essential to meet the nation’s growing food demands and achieve inclusive development.

Issues Faced by Indian Agriculture –

1. Climate Change and Environmental Degradation:
   • Indian agriculture is highly vulnerable to climate change, with unseasonal rains, temperature fluctuations, and extreme weather events disrupting crop cycles.
   • Land degradation due to over-exploitation, deforestation, and poor soil management practices further exacerbates the challenges.
2. Low Productivity and Technological Adoption:
   • Despite advancements, productivity levels in Indian agriculture remain low compared to global standards. The slow adoption of modern farming techniques and technologies like precision farming and genetically modified crops limits efficiency and output.
   • The lack of access to advanced irrigation systems and water management techniques, particularly in rain-fed regions, also hampers productivity.
3. Market Access and Price Realization:
   • Farmers often face difficulties in accessing markets and getting fair prices for their produce. The current market infrastructure, while improving with initiatives like eNAM, still falls short in ensuring seamless market access and equitable price realization across the country.
   • Middlemen and a lack of storage facilities contribute to post-harvest losses and income instability.
4. Imbalanced Workforce and GDP Contribution: Agriculture engages nearly 46% of the workforce but contributes only about 18% to the GDP, indicating a significant imbalance. If current growth trends continue, this disparity could worsen, leading to increased rural poverty and migration to urban areas.
5. Policy and Financial Support Challenges:
   • Although schemes like PM-KISAN and PMFBY provide financial support, they often fall short of addressing the broader structural issues. The reliance on subsidies for food and fertilizers can also distort market signals and hinder long-term investment in innovation and infrastructure.
   • The agricultural credit system needs reform to ensure timely and adequate financial support for farmers, particularly small and marginal farmers.
6. Population Growth and Food Security:
   • According to United Nations projections, India’s population is expected to reach 1.5 billion by 2030 and 1.59 billion by 2040. By 2047, food demand is expected to increase significantly, necessitating a corresponding increase in agricultural production.
   • The demand for diverse commodities, including meat and grains, will also rise, requiring targeted production strategies to meet varying consumption patterns.

Measures Needed to Address Agricultural Challenges –

1. Promoting Sustainable Agricultural Practices:
   • Focus on adopting sustainable practices such as organic farming, crop rotation, and integrated pest management to maintain soil health and reduce environmental impact.
   • Strengthening schemes like PMKSY to promote water-use efficiency through wider adoption of micro-irrigation techniques such as drip and sprinkler systems.
2. Enhancing Technological Integration:
   • Accelerate the adoption of precision farming, genetically modified crops, and other modern agricultural technologies to boost productivity.
   • Expand the use of AI and data analytics to provide real-time insights into weather patterns, pest control, and crop management, enhancing decision-making at the farm level.
3. Improving Market Access and Infrastructure:
   • Strengthen and expand the reach of the eNAM platform to integrate more mandis and farmers into the digital marketplace, ensuring better price discovery and reducing the influence of middlemen.
   • The Agriculture Infrastructure Fund, with a ₹1 lakh crore financing facility, supports the development and modernisation of post-harvest management infrastructure.
4. Balancing Workforce and GDP Contribution:
   • Encourage diversification into allied sectors such as dairy, poultry, and fisheries to reduce the over-reliance on crop-based farming and enhance income streams.
   • Implement structural reforms to increase agricultural productivity, reduce disguised unemployment, and gradually shift surplus labor to more productive sectors.
5. Rationalizing Subsidies and Enhancing Financial Support:
   • Rationalize food and fertilizer subsidies to prevent market distortions and redirect savings towards agricultural research, innovation, and extension services.
   • Reform the agricultural credit system to ensure timely and adequate financial support for farmers, particularly for investments in modern farming techniques and infrastructure.
6. Addressing Food Security and Population Growth:
   • Develop a strategic plan to increase food production in line with population growth projections, focusing on high-demand commodities such as meat and grains.
   • Encourage the cultivation of climate-resilient and high-yield crop varieties to ensure food security under changing environmental conditions.

The road to 2047 presents both challenges and opportunities for Indian agriculture. By embracing sustainable practices, leveraging technological innovations, and implementing strategic initiatives, India can enhance farmer incomes, meet the food demands of its growing population, and achieve inclusive, sustainable development.

• India and the US signed two important agreements, the non-binding Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding the Assignment of Liaison Officers during the Defence Minister’s visit to the USA.
Security of Supply Arrangement –
• SOSA mandates reciprocal priority support between India and the US for goods and services critical to national defence.
• The arrangement enhances supply chain resilience.
• India becomes the 18th partner in the US’s SOSA network.
• SOSA supports mutual priority delivery requests for critical defence resources and implements the “Meeting National Defence Requirements” section of overarching defence cooperation principles.
• Though not legally binding, SOSA is a significant step in US-India defence ties. However, it lacks legal enforceability and is not sanction-proof.
Memorandum of Agreement on Liaison Officers –
• Enhances information sharing by posting Indian armed forces officers in strategic US commands, with the first deployment to the Headquarters Special Operations Command in Florida.

Dig Deeper: Read about LEMOA, COMCASA and BECA agreements between the US and India.

• Recently, the RBI has increasingly used its regulatory powers to gain more control over the rupee.
• However, using regulations for currency management can introduce uncertainty in policy and increase business costs in RBI-regulated sectors.
• The Indian rupee operates under a managed floating exchange rate regime, where the Reserve Bank of India (RBI) intervenes in the foreign exchange market to stabilise the rupee by buying or selling dollars.

• Instead of expanding regulatory powers, the RBI should facilitate easier rupee trading within India.

Dig Deeper: Read about the convertibility of the Rupee in the Current Account and Capital Account.

The recent collapse of the saalu mantapa at the Virupaksha temple of Hampi due to heavy rains raised questions about the alleged neglect of this UNESCO World Heritage Site.

Hampi, once the capital of the Vijayanagara Empire is dotted with sculptures and structures in various states of disrepair.

Hampi, with its approximately 1,600 monuments spread across 250 square kilometres, is one of India’s largest heritage sites, involving complex conservation efforts by the Archaeological Survey of India (ASI) and Karnataka’s Department of Archaeology.

The city was a marvel noted by foreign travellers like Niccolò de’ Conti, Fernão Nunes, Abdur Razzaq,

Domingo Paes compared Vijaynagara to Rome in its grandeur.

The site remained largely forgotten until the late 18th century when the British began exploring it, leading to early documentation and restoration efforts.

Recent discoveries include the paan-supari bazaar.

The 1986 UNESCO tag intensified conservation efforts.

The establishment of the Hampi World Heritage Area Management Authority (HWHAMA) in 1999 introduced strict regulations, leading to the displacement of local businesses and residents, which affected the cultural landscape of Hampi.

Dig Deeper: Go through the Sculptures and Temple tradition of Hampi.