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LATEST NEWS UPDATES | To bridge the urban-rural divide, India should accelerate economy’s structural transformation -Kalaiyarasan A

To bridge the urban-rural divide, India should accelerate economy’s structural transformation -Kalaiyarasan A

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published Published on Jun 16, 2022   modified Modified on Jun 18, 2022

-Scroll.in

The demand for equitable access to quality education and healthcare should complement agriculture reforms in the country.

It has been more than six months since the Samyukt Kisan Morcha – the umbrella organisation representing protesting Indian farmers – ended its 15-month-long agitation at Delhi’s borders against the three farm laws. Some of their demands were met, while their demand for a Minimum Support Price guarantee remains unfulfilled.

These developments do little to address the longstanding economic problems of agriculture in India. The farm sector needs reform to raise productivity, enhance farmers’ income, build market infrastructure and address declining soil fertility. If Indian policymakers do not address these issues, the simmering socio-economic contradictions in rural India will reach a boiling point, as it did when landed peasant castes marched in the streets demanding reservations a few years ago.

Rural India has transformed over the last few decades, bringing about new challenges that go beyond agriculture and include non-farm economic activities. Even a Minimum Support Price guarantee will likely do little to make things better in the long run.

Price supports can only go so far – the fundamental problem is the large and widening disparity of productivity between agriculture and the non-farm economy. Indian agriculture is highly unproductive, not only relative to the rest of the economy in India but also compared to other countries.

Unless policies crafted to increase productivity simultaneously diversify the workforce to accelerate the structural transformation of the Indian economy, farmers’ conditions will continue to be dire.

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Scroll.in, 16 June, 2022, https://scroll.in/article/1025539/to-bridge-the-urban-rural-divide-india-should-accelerate-economys-structural-transformation


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