Thursday 23 January 2020




Inclusive and Sustainable Growth of Rural Economy

Augmenting farm income through innovative agricultural practices is the key to inclusive development in rural sector. The concept of inclusive growth came into being with the launch of the eleventh five year plan. It is a critical aspect determining the sustainability of future agricultural growth in India.
Some of the researchers who link advancements in agriculture to an inclusive and sustainable growth opine as follows:
According to Richard (2004) , agriculture  growth  and  rural  development  had a  significant  potential  to achieve  inclusive  growth  among the Asian  countries.    Hasan  and  Quibria  (2004)  believed  that  rural poverty  was a common phenomena  countries  where agriculture  was  the  main source of livelihood.  Hence the growth  of  the agrarian sector  was  the  key to  poverty  reduction  and  inclusive  growth. This would reduce  rural  poverty by  increasing  productivity  and  incomes.  According to OECD (2006), agriculture connects economic growth and the rural poor.
 Sharma et al., (2010) believed that an inclusive growth was essential to develop agriculture on sustainable manner  by reducing  disguised  unemployment  in  the  farm  sector  in  the  way  of  shifting labor to  the  non-farm  sector  and  increasing  average  size  of  land  holding. This would   result in an increase in marginal productivity of labour.  
Hence, the focus of concern was to engage the farmers in allied areas of agriculture. Now-a- days, farmers are engaged in floriculture, honeybee breeding etc.
 Birthal et  al., (2012)  supported the above view when they proposed  that  diversification  of    agriculture  through  livestock production  would  accelerate  the  agriculture  growth  and  it  provide  livelihood  support  to  the  small  and marginal  land  holders.    Agriculture  growth  and  rising  farmers  income  was an  important  aspect  for  inclusive growth in agriculture sector. 
However, economic  growth  scenarios  of  India  as  well  as  the  major  growing  states  have  not  been successful  in  combining  growth  with  equity  and  making  growth  inclusive.   The  trickle-down  process  of growth  has  eluded sectors  such as  agriculture  where  labour  is  concentrated  (Bhalla, 2008).    Rao  (2009) observed   that   regional   disparity,   rising   income   inequality,   inequality   of   land   holdings   and   high dependency  of  workforce  were  important  obstacle  for  inclusive   growth  in  agriculture  or   equitable development in the all sectors of the economy.
Perhaps the first step in this direction would be to educate the farmers towards adoption of latest techniques and good agricultural practices.
Initiatives by the Central and State governments in this regard must adopt a multipronged approach. Water, roads and cold storage facilities are essential prerequisites for a good crop. Thereafter its distribution through a proper channel would ensure a good return to the farmers. These facilities would empower the farmers.
The third is the presence of an enforcement mechanism to oversee the smooth functioning of the entire production and distribution system. This may include a technical support system in the form of extension facilities from the Agricultural Universities. The gram panchayats would resolve the legal issues and conflicts of interest at the grass root level. These two bodies are already in place and functioning effectively. However a monitoring body from the state government could carry out random checks to ensure that there is no mismanagement of funds at this level and that the timelines are being adhered to.  This mechanism should also include a grievance redressal and counseling centre for the farmers.   
Hence this cycle comprising of three Es, namely, educate, empower and enforce would certainly lead to an inclusive and sustainable growth of the rural economy and the aim of doubling farmers income as envisioned by honorable PM Narendra Modi  would  soon be realized.





Ms Suchitra Srivastava

Associate Professor

Department of Management Studies

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