RBI Analysis: Decomposition of Agricultural Growth in India - Role of Horticultural Diversification and Challenges
SDG 2: Zero Hunger
SDG 12: Responsible Consumption and Production
Institutions: Ministry of Agriculture and Farmers Welfare | Reserve Bank of India
The RBI analysis of agricultural growth in India from 1992-93 to 2022-23 reveals that yield improvements, diversification towards horticulture, and increased cropping intensity have been the main drivers of growth. Horticulture, especially fruits and vegetables, has contributed significantly to output growth, benefiting small and marginal farmers by offering higher income opportunities.
The study identifies challenges such as yield fluctuations, inadequate cold storage infrastructure, and price volatility, which create instability in farmers' incomes and hinder the full potential of horticultural diversification. Government initiatives like the Mission for Integrated Development of Horticulture and Agriculture Infrastructure Fund aim to mitigate these issues by enhancing technology adoption and improving post-harvest infrastructure.
Going forward, strengthening linkages between farmers, export markets, and urban consumers, alongside focused research on climate-resilient practices, is essential to sustain agricultural resilience and inclusive growth.
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https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/05ARTICLES28082025E03B4167B88F4086B949B3FA6F792DBB.PDF