Essay on Economy of India and its Dependency on Agriculture

1125 Words Essay:

Covid-19 pandemic negative impact on Indian Economy:

The coronavirus pandemic has had a negative impact on the economy of the nation. The country had been experiencing a pre-pandemic slowdown economically as well. The pandemic has helped in magnifying pre-existing risks present in India's economic outlook, as said by the World Bank. Corona has a large impact on the poor section of India. It is because this section depends on daily labour base income; which is heavily affected by Covid-19. Bus drivers, bus gatemen, a private workforce of Indian Railway, Street hawkers, Train hawkers, Street food sellers, etc. ( The list is very large) have suffered during this period. Few kg food materials are not the solution of life. Life needs are much more besides stomach filling.

The economy of India in 2008

The World Bank reported that the recession in India started in the third quarter of 2008 and reached its peak in the fourth quarter of 2009. The economic activities had reduced by a staggering 17.5% in the fourth quarter of 2008 compared to the same quarter in 2009. There has been a decline of 13.6% in the Purchasing Managers Index, which measures industrial output, according to the World Bank.

Indian economy still depends on Agriculture:

India's economy is still dependent on the agriculture sector. The agriculture sector has been experiencing a downturn. The drought situation in 2008, had exacerbated the agricultural activity and had led to a decline in the cotton crop. The economic activities had increased by only 2.4% in the quarter ended June 2009. The country is going through the worst recession since the early 1970s. The economic downturn will be felt more by the rural areas as the urban population is expected to grow by around 9 million in 2009. The rural areas are facing an acute shortage of manpower.

National Sample Survey on Indian economy:

According to a survey by the National Sample Survey Organisation, over 66% of the total households in rural India have no access to bank accounts. More than 80% of rural households do not have access to cash. The situation is quite different in urban areas where more than 90% of the households have bank accounts and cash.

Rural India has chronic cash shortage:

India has a chronic cash shortage problem. Farmers get credit directly from banks and finance companies, instead of selling products direct to the market. There is a shortage of cash which keeps farmers from selling products directly to the market. It means that only one-third of the produce gets sold directly. The rest is either kept as surpluses or goes into storage. Rural India is facing the worst. The demand for cash by farmers has been reduced by a rise in supply from the government sugar mills which are now getting direct payments from the government.

But rural India is experiencing the worst food shortage since 1975. This is caused by the continuous import of foodgrains from the west. This has led to massive hoarding of foodgrain by the farmers. The government is now providing loans to the farmers so that they can sell their produce direct to the market. It means that the government will buy the crop instead of letting it be hoarded by the farmer. The farmers are so happy because they now get a direct remunerative price for their produce.

One can see that the farm produce is getting transported to the urban areas via multiple roads which mean that the transport cost has also been pass through to the producer. Farmers are thus forced to reduce the yield to meet the cost of transportation. This means that instead of getting full crop yields, the farmer now gets subpar yields. There is a limit to how much farmers can be squeezed by this transport grid.

Farmers are Selling Land to urban local due to Cash crisis:

Farmers are also being told by government bureaucrats and urban local bodies that if they want the urban local bodies to provide any infrastructure at all to increase the income to them, they must provide road access to their areas. This is because the farmers are experiencing the worst land crisis since the 1970s. Urban planners also blame the farmers for this crisis. This is because the government has kept too much land with restrictive land-use rules. But in reality, the real blame lies with the farmer who is facing a cash crisis both today and the past 7 years because of continuous food import.

A recent survey of the top urban local bodies has revealed that a full 80% of the farmers want to sell land to the urban local bodies. This is because farmers are facing such a terrible cash crisis that it is not worth their while to keep their land. A substantial amount of money is being asked from the farmer to sell the land to the local body. This would also enable the local body to provide better services to the farmers. The same survey also revealed that only 5% of urban farmers would prefer to keep their land under restrictive land-use rules and use of public funds to build roads, schools, etc.

Farmers have faced terrible land crises since 1970s:

How could this happen? Because the farmers are faced with such a terrible land crisis since the 1970s, and the agricultural policies of the governments of India have been so heavily weighted in the farmer's favor that since the 1970s, farmers have not really gotten any increase in agricultural land availability either to meet the demand of the growing population or to meet the rising demand of fast-growing urban areas. The problem is not just about supply; it is also about how the governments keep the agricultural policies of the farmers in check.

The government needs to check Industrialists in the interests of the common population:

The problem of how the government keeps the farmers in check has been faced by all industries too. And the solution of how the government keeps the industrialists in check has also been faced by all industries too. Government has to make sure that the interests of the domestic population come first, and that the domestic population is never neglected. The government also has to enforce the highest environmental laws to the industrialists and keep them in check.

But the environmental laws that are being enforced have created such a bad situation that many countries have decided to give back all their mining rights to the local communities instead of allowing them to sell the mining rights to the local body. All the mining companies have to do is pay a fee to the local community to allow them to use the mining rights. So even in countries that have tried to enforce strict environmental laws the laws are not really being enforced.

needed of an environmental policy: So what is needed is an environmental policy that is based on the social as well as economic needs of the people. In this environmental policy, we also have to keep the needs of the natural world in mind also. This is because some countries have found that with the environmental laws enforced they actually have to leave certain areas totally. So there has to be a balance between ensuring the needs of the people and ensuring the needs of the natural world. The environment is very important as it is the basis of growth and existence for all life. So any violations will lead to a huge disaster.

So the question now is are the needs of the natural world the needs of the people? And will the environmentalists be able to achieve this balance?

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