For India to develop, the shift from an agricultural economy to one driven by manufacturing and services is critical. Labour needs to be freed up from agriculture. For that, agriculture needs to become more productive.
Reforms in the agricultural markets are important for increasing farm incomes. There are too many intermediaries – including the government – which drives a very wide wedge between the price the farmer receives and the price the consumer pays. Making the supply chain shorter and more efficient through competition would help producers as well as consumers. Additionally, improved information systems would make price discovery easier and reduce the arbitrage opportunities that attract intermediaries.
So, what are the transformations that Indian agriculture needs? From availability of water and power to ensuring the land under cultivation can produce more, how can Indian agriculture be made more efficient?