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Written by A S MITTAL / Thenewsdose.com

The growing income disparity between the organised government sector and the unorganised agrarian majority is more than just an economic issue; it’s a clarion call for action.

As India sets its ambitious goal of becoming a developed nation by 2047, the vision of ‘Viksit Bharat’ compels us to confront a crucial issue: what will the socio-economic reality of the country’s farmers be when the nation celebrates its centenary?

Consider the projections tied to the forthcoming Eighth Pay Commission, which is set to take effect on January 1, 2026. Current entry-level basic salaries under the Seventh Pay Commission could increase from ₹18,000 to as much as ₹44,280. If this trend continues, an entry-level government employee could earn over ₹1.25 lakh per month by 2047. The government salaries have surged with each revision, reflecting the nation’s growing fiscal strength and improved living standards.

In stark contrast, the income of the average Indian farmer has lagged significantly behind, often trailing inflation and rising input costs. According to the National Sample Survey Office (NSSO), the average monthly income of an agricultural household is a mere ₹10,218, just one-fourth of what a government employee earns at the entry level.

This growing income disparity between the organised government sector and the unorganised agrarian majority is more than an economic issue; it’s a clarion call for action. If we fail to address this gap now, we risk forming two distinct nations: a thriving ‘Viksit Bharat’ in our cities and a struggling ‘Vanchit Bharat’ in our villages. Ignoring this challenge will lead to an economically fractured Bharat—prosperous in urban areas yet beleaguered in rural regions.

The Agrarian Gap in a Rising Economy

Despite employing nearly 42 per cent of India’s workforce, agriculture contributes only about 15 per cent to the national GDP (Economic Survey 2024–25). This glaring disparity illustrates how stagnant farm productivity and inadequate value realisation continue to hinder the sector. The average size of operational landholdings has shrunk to 1.08 hectares, severely limiting efficiency and scalability.

Moreover, agricultural R&D spending in India has stagnated over the past two decades, hovering around 0.4 per cent of the sector’s GDP—far below the 1-3 per cent benchmark observed in developed agricultural economies such as the US, Israel, and the Netherlands. The limited scope for increasing landholdings and resources, such as water, poses a significant challenge. Without innovation-driven productivity growth, we risk relegating our farmers to subsistence-level earnings while the rest of the economy advances.

Redirecting Resources: From Subsidies to Productivity

India’s current agricultural policy is overly reliant on input subsidies, consuming over ₹4 lakh crore annually on fertilisers, electricity, irrigation, the PM Kisan Samman Nidhi scheme (₹6,000 per year), the PM Fasal Bima Yojana, and procurement operations. However, these initiatives are insufficient for fostering long-term productivity and sustainability. By reallocating even one-third of this spending toward research, extension services, and infrastructure, we could achieve significantly greater economic benefits.

Farmers need efficient water management systems rather than free electricity; they require soil health-driven nutrient solutions rather than blanket fertiliser subsidies; and we must provide institutionalised, technology-linked, credit subsidies for the cultivation of high-yield, export-oriented cash crops, not just loan waivers.

Technological Leapfrogging: The Missing Revolution

The world’s leading agricultural economies have achieved prosperity not through subsidies but by leveraging science, technology, and institutional reform. For instance, Israel has become a global leader in precision irrigation and water-use efficiency despite its arid climate, thanks to strong partnerships between universities, start-ups, and agricultural cooperatives.

The Netherlands, a country smaller than Haryana, has risen to become the world’s second-largest agricultural exporter. This success is attributed to significant public and private investment in agri-tech R&D, data-driven farming practices, and innovative greenhouse technologies. China has effectively tackled rural poverty through targeted R&D and digital extension services, achieving income parity between its rural and urban populations.

India’s agri-tech ecosystem is finally moving in this direction. The emergence of start-ups focusing on drone-based spraying, soil mapping, farm-gate logistics, and digital marketplaces is promising. Initiatives like the Agriculture Infrastructure Fund, the Digital Public Infrastructure for Agriculture (DPIA), and the PM-Kisan Drone Yojana represent essential steps forward. However, these efforts remain fragmented and underfunded.

We have the opportunity to redefine our agricultural landscape, but it requires immediate and decisive action. We cannot afford to neglect our farmers any longer.

Learning from Milestone Nations 

Japan’s transition from a developing to a developed economy in the 1960s was anchored in rural modernisation, including universal literacy, rural cooperatives, and mechanised farming. Similarly, South Korea’s Saemaul Undong (New Village Movement) in the 1970s transformed its agrarian landscape before industrialisation took hold.

India’s Viksit Bharat vision will require a similar foundation. Rural India cannot remain merely a beneficiary; it must become a co-author of growth. Ensuring that farmers double or triple their incomes by 2047 demands consistent policy commitments rather than populist shifts every election cycle.

A New Deal for the Rural Producer

By 2047, India’s workforce is expected to be younger, more urban, and digitally literate. However, unless we empower rural producers through structural reforms, the social divide could deepen. Four key measures could transform the agricultural landscape:

First, the National Crop Damage Compensation Fund

Instead of relying on slow and often disputed insurance claims, a transparent, corpus-driven compensation fund administered at the district level can provide immediate relief to farmers affected by floods, droughts, or pest attacks. The PM Fasal Bima Yojana currently insures only 50 million farmers, but delayed claim settlements and disputes over premium sharing have eroded trust in the scheme. A dedicated compensation mechanism can restore that trust and ensure timely support.

Second, Investment in Agricultural R&D

India’s agricultural research expenditure, set at ₹9,000 crore for 2023–24, is less than half of what is required to sustain innovation-led growth. Increasing this investment to at least 1 per cent of agricultural GDP could unlock breakthroughs in drought-resistant crops, biofertilizers, climate-resilient seeds, and post-harvest technology. Additionally, linking Krishi Vigyan Kendras (KVKs) to real-time digital advisory systems can deliver research directly to farmers’ smartphones.

Third, Institutional and Market Reforms

Fragmented landholdings and poor value-chain integration remain structural bottlenecks. Encouraging Farmer-Producer Organisations (FPOs) with market linkages, contract farming with safeguards, and warehouse receipt financing can enhance bargaining power. The electronic National Agriculture Market (e-NAM) should evolve into a fully interoperable platform that allows farmers to sell their produce nationwide and in overseas markets, supported by reliable, affordable logistics, while incentivising exports.

Four, Addressing Climate Change

By 2047, Indian agriculture will confront new climatic challenges. The World Bank projects that agricultural income could decrease by 15-18 per cent due to climate-induced yield shocks if adaptive practices are not scaled up. With over 55 per cent of India’s sown area remaining rain-fed, the sector is especially vulnerable to unpredictable monsoon patterns, as recently observed in Punjab.

Investing in climate-smart agriculture—such as micro-irrigation, solar-powered cold chains, and regenerative soil practices—can help safeguard incomes and reduce carbon intensity. India’s G20 Presidency outcomes on global food security, along with the ICAR-NASA collaboration on climate data, offer promising avenues for innovation-driven resilience.

The Road to 2047: Inclusive Prosperity 

India’s path to development is irreversible, but its character is not predetermined. Whether Viksit Bharat becomes a shared national achievement or a dual economy hinges on how the government redefines its spending priorities. The focus must shift from consumption-based welfare to productivity-led sustainable empowerment.

The narrative of India’s rise will be incomplete if the hands that feed the nation are left behind. A Viksit Bharat worthy of its goal must ensure that, by 2047, the farmers are not just survivors but stakeholders in prosperity.

-The Author is Vice-Chairman Sonalika ITL Group, Vice-Chairman(Cabinet minister rank) of the Punjab Economic Policy and Planning Board, Chairman of ASSOCHAM Northern Region Development Council. 

Views expressed in the opinion piece are personal and solely of the author. They do not necessarily reflect the news dose.com views.