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EDITORIAL ANALYSIS : The MP Model In Agriculture

 

Source: Indian Express

 

  • Prelims: Indian Economy(GDP, BOP, GVA, Economic reforms, BIMARU, agricultural reforms, etc
  • Mains GS Paper III: Indian economy and issues related to planning, mobilization of resources, Effect of liberalization on the economy etc

 

ARTICLE HIGHLIGHTS

  • India is today a $5 trillion economy.
    • If the current growth trend continues, the country is likely to be a $5.4 trillion economy by 2027 (as per IMF forecast).

 

INSIGHTS ON THE ISSUE

Context

The ‘BIMARU:

  • Acronym has been used to refer to Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh, to imply they have lagged in terms of economic growth, healthcare, and education.
  • BIMARU means “sickly” in Hindi.
  • The term was used to highlight the backwardness, especially with regard to poor performance in demographic indicators and contribution to population explosion.

 

How has India performed?

  • As per IMF: It took India almost 59 years since Independence to become a $0.95(zero point nine five)trillion economy in 2006.
  • It became a $3(two point three)trillion economy by 2016 — it added $1.35 trillion in 10 years.
    • And in 2022, it became a $5(three point five)trillion economy by adding $1.2(one point two)trillion in just six years.
  • If India stays this course, the country could rise to a $25 to $30 trillion economy by 2047.

 

Case of Inclusiveness:

  • Looking at the record of the laggard states, especially the BIMARU states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh).
  • Performance of the agricultural sector that engages the largest share of workforce — 5 per cent in 2020-21.
  • With development, the workforce moves out of agriculture to higher productivity jobs in urban areas,
    • especially in the construction of new cities and the infrastructure required to run these urban centers.

 

Performance of GDP at the state level(their agriculture sectors in particular — over the period 2005-06 to 2021-22)

  • The country averaged a GDP growth of 6.7(six point seven)percent per annum in this period and its agri GDP growth stood at 8(three point eight)percent per annum.
  • Overall GDP growth:
    • Gujarat topped the list at 9(eight point nine)percent
    • Uttarakhand (8.7 percent)
    • Telangana (8.6 percent)
    • Haryana (8 percent).
  • At the bottom of this list were:
    • Jammu and Kashmir (5.2 per cent)
    • Assam (5.4 percent)
    • West Bengal (5.5 percent)
    • Uttar Pradesh (5.6 percent)
    • Jharkhand (5.7 percent).

 

Agri-GDP growth in BIMARU states(case of Madhya Pradesh)

  • It has clocked the highest growth rate in agriculture at 3(seven point three)percent.
  • Its overall GDP growth is a respectable 7.5(seven point five)percent.
  • The state’s agri-GDP growth is way above the all India agri-GDP growth
  • MP has made its mark as a top-notch player in tomato, garlic, mandarin oranges, pulses (especially gram) and soybean cultivation.
    • Pulses and oilseeds fix nitrogen and use very little water, saving on fertilizer and power subsidies, and ensuring environmental sustainability.
  • MP is also the second-largest producer of wheat (after UP), and the third-largest milk producer after UP and Rajasthan.
  • It is following a well-diversified portfolio in agriculture while doubling irrigation coverage from 24 to 45.3(forty five point three)percent of its gross cropped area over the last two decades.
  • MP is the only state whose agriculture contribution to overall GDP has increased to 40 percent, as against 8(eighteen point eight) percent at the all-India level.

 

Other BIMARU states:

  • Rajasthan has also done well in agriculture recording an annual average growth rate of 7(five point seven)percent, followed by UP and Bihar with 4.5(four point five)percent and 4.4(four point percent respectively.
  • Jharkhand and Punjab:
    • Jharkhand: It has performed exceptionally well in agriculture with a growth rate of 6.4 percent per annum, largely driven by diversification towards horticulture and livestock.
    • Punjab: Its agri-GDP growth was a meager 2 percent per annum over this period.

 

Way Forward

  • In the next 25 years: The country’s focus should be on infrastructure construction, including in rural areas, and skilling a large mass of the working population for higher productivity jobs.
  • MP is an example of doubling the contribution of horticulture in its value of agriculture and allied sector.
  • Punjab had diversified to high-value horticulture, or even some pulses and oilseeds, but it didn’t register higher agricultural growth and saved precious groundwater and power subsidies.
    • The methane and nitrous oxide emissions that ensue as a result of paddy cultivation could also have been much less.
    • Punjab’s policymakers need to think about.

 

QUESTION FOR PRACTICE

Do you agree that the Indian economy has recently experienced recovery ? Give reasons in support of your answer.(UPSC 2021) (200 WORDS, 10 MARKS)