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International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
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Vol. 8, Issue 2 (2025)

Agriculture as the backbone of India’s Economy: An analysis of contribution, barriers and policy reforms


Tariq Mehmood

Agriculture remains a cornerstone of India’s economy, contributing significantly to national income, employment, and rural livelihoods despite a declining share in GDP. Drawing on official statistics, national surveys, and international datasets, this study examines the structural role of agriculture, its contribution to economic growth, and the persistent challenges that constrain its potential. The findings highlight a pronounced imbalance between agriculture’s GDP contribution (around 17%) and its large employment share (approximately 40-46%), reflecting low labour productivity and substantial regional disparities. A comprehensive review of literature identifies key constraints such as low and uneven productivity, inadequate post-harvest infrastructure, fragmented markets, limited access to credit and insurance, and increasing vulnerability to climate risks. The study also synthesizes evidence-based policy directions, emphasizing investment in public goods, market modernization, financial inclusion, diversification, agro-processing, and climate-resilient practices. By integrating secondary data with conceptual analysis, the research underscores the need for a holistic, technology-driven, and sustainability-oriented agricultural strategy to enhance productivity, improve rural livelihoods, and support inclusive economic transformation in India.
Pages : 1134-1140 | 1433 Views | 1265 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Tariq Mehmood. Agriculture as the backbone of India’s Economy: An analysis of contribution, barriers and policy reforms. Int J Finance Manage Econ 2025;8(2):1134-1140. DOI: 10.33545/26179210.2025.v8.i2.660
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