Review of India's Agricultural Sector: Economic Contribution, Subsidies, Trade, and Regulatory Protection

Abstract

India's agricultural sector remains a vital pillar of the national economy, contributing significantly to employment, food security, rural development, and economic stability. Although the sector's share in Gross Domestic Product (GDP) has gradually declined due to the expansion of industry and services, agriculture continues to support a substantial proportion of the population and serves as the primary livelihood source for millions of rural households. This review examines the economic contribution of India's agricultural sector, focusing on its role in GDP generation, employment creation, and rural income enhancement. It further analyzes the importance of agricultural subsidies, including input subsidies for fertilizers, irrigation, electricity, and credit support, which are designed to improve productivity and farmer welfare. The study also explores India's agricultural trade performance, highlighting export growth, major agricultural commodities, global competitiveness, and challenges associated with international market integration. Additionally, the review investigates the regulatory and protection mechanisms implemented by the government, such as Minimum Support Price (MSP), public procurement systems, tariff policies, crop insurance schemes, and food security programs. The findings indicate that while government interventions have contributed significantly to agricultural growth and stability, challenges related to productivity, sustainability, market access, climate change, and fiscal burden persist. The review emphasizes the need for balanced policy reforms that enhance competitiveness, encourage technological innovation, strengthen supply chains, and ensure sustainable agricultural development. Overall, the study provides a comprehensive understanding of the economic significance, policy framework, and future prospects of India's agricultural sector in the context of evolving domestic and global economic conditions.