The critical nexus: Agriculture as the foundation of Viksit Bharat

Prime Minister Narendra Modi’s Independence Day 2025 address laid out an ambitious blueprint for a “Viksit Bharat” by 2047, with Atmanirbharta — self-reliance — at its core. The strategy recognises that strengthening local food systems is indispensable to national progress, especially as small and marginal farmers, who make up 85 per cent of India’s agrarian population, are central to rural livelihoods and food security.

Empowering these farmers through robust, decentralised food systems does not merely serve agricultural advancement — it is pivotal to realising the holistic goals of Viksit Bharat.

Here are the current performance metrics for agriculture that support Viksit Bharat 2047 vision.

Current agricultural foundation is impressive yet incomplete

Despite progress across key agricultural and rural indicators, major gaps threaten the Viksit Bharat 2047 vision. The average landholding is just 0.7 hectares; only 7 per cent of farmers benefit from the Minimum Support Price; and 61 per cent depend on rain-fed agriculture, exposing millions to climate risk. Micro-irrigation covers only 15 per cent of farmland, while post-harvest losses in perishables range from 20-40 per cent, undermining food security and farmer incomes. Many smallholders remain excluded from formal markets and technology, limiting self-reliance and equitable growth.

Small farmers continue to struggle with fragmented landholdings and limited bargaining power, remaining excluded from high-value markets and advanced inputs, hampering self-reliance. While the 5 per cent annual agricultural growth rate signals sectoral resilience, much of this growth is regionally uneven and small producers often do not benefit proportionally. Food production is at an all-time high (353.96 million tonnes), yet post-harvest losses, inadequate storage infrastructure and poor distribution mean not all regions enjoy food and nutrition security.

Direct income support schemes like Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) have boosted rural prosperity, yet gaps in land record digitisation and beneficiary validation leave some eligible farmers excluded. Credit access for smallholders is up to 76 per cent, but a quarter still rely on informal lenders. 

The Lakhpati Didis initiative supports women’s economic empowerment, but scaling success requires overcoming deep-rooted social, financial and technological barriers in many states. Despite generating 2,500+ million person-days of employment through MGNREGA, much work remains seasonal and not always linked to durable asset-building, which could enhance long-term productivity.

Productivity gains in rice and wheat remain modest and while coarse cereals show promise for climate resilience, broader adoption is held back by weak market linkages and inadequate extension support.

Village-level foundation and women’s economic empowerment

The “Viksit Gram” concept, championed by the Union Minister of State for Rural Development Pemmasani Chandrasekhar, envisions villages where “every family has a pucca house, every village is connected by roads, every rural youth has employment opportunities and every woman is financially independent”.

This directly supports local food systems through infrastructure development. So far, 7.56 lakh kilometres of rural roads have been built under PMGSY, connecting farmers to markets, reducing transport costs and cutting post-harvest losses.

India’s rural transformation is increasingly driven by women, with 14.8 million “Lakhpati Didis” now earning Rs 1 lakh or more annually through Deen Dayal Upadhyaya Antyodaya Yojana, with a target of 30 million by 2047.

Over 100 million rural women are organised into nearly 9.1 million self-help groups (SHG), collectively linked to banks with deposits exceeding Rs 11 lakh crore, powering entrepreneurship and local food systems. Women-led enterprises — spanning agri-business, food processing and dairy collectives — strengthen supply chains and foster innovation.

With 80 per cent of rural women engaged in agriculture, including 36 million farmers and 61.5 million labourers, their expanding leadership — despite land access challenges — is a proven economic multiplier for Viksit Gram and Viksit Bharat.

The small farmer paradox

Despite owning only 24 per cent of total operated land, small and marginal farmers contribute 41 per cent of India’s food grain production and 70 per cent of vegetable production. This inverse relationship between farm size and productivity demonstrates that supporting small farmers and local food systems is economically efficient.

Closing the technology gap will provide sharper solutions: scaling digital extension, AI and IoT for real-time crop advisory and introducing village-level “Digital Krishi Sakhis” for hands-on support akin to Drone Didis.

Affordable agri-tech through public-private partnerships and shared equipment models, with smart devices at the Farmer Producer Organisation (FPO) and panchayat level, is essential. Digital platforms — including FPO-led models — should pool resources, enable transparent payments, ensure traceability and allow direct access to e-NAM markets. 

Expanding financial inclusion through micro-credit and insurance, along with decentralised processing and cold storage hubs, can slash post-harvest losses and drive value addition. Digital literacy training and village-level “tech champions” will aid adoption. Prioritising rural broadband, fast-tracking successful pilots and incentivising climate-smart agri-tech can empower smallholders, fuel Viksit Gram and deliver inclusive growth for Viksit Bharat 2047.

Equally important is the promotion of local indigenous knowledge and productive seed varieties. Integrating time-tested agricultural wisdom with innovative practices preserves biodiversity, builds climate resilience and sustains productivity for future generations.

Multiplier effect for economy

Studies suggest that spending on local food systems generates a higher local economic multiplier compared to conventional supply chains. A United States analysis suggests each dollar spent locally creates up to $1.90 in local economic activity, circulating more money and supporting jobs.

In India, research — including an exploratory study on Telangana’s Rythu Bazar — finds that smallholder farmers participating in local food markets and collectives receive higher prices and immediate cash, boosting both income and the regional economy. 

Studies indicate that integrating local production, processing and direct marketing — especially through farmers’ collectives — improves incomes, creates rural employment and expands the multiplier effect. FPOs enhance collective bargaining capacity, facilitate direct consumer access, enable vertical integration and broaden financial inclusion, amplifying the economic and social benefits of local food networks across India.

Converging policies for impact

Mahatma Gandhi National Rural Employment Guarantee Act is increasingly focused on asset creation, prioritising infrastructure for local food systems such as cold storage, processing units and rural market roads. The PM Krishi Sinchai Yojana integrates solar-powered micro-irrigation to lower costs and enable “solar as a third crop” income streams for farmers. Skill development under Deen Dayal Upadhyaya Grameen Kaushalya Yojana is being tailored to food processing, agri-value addition and entrepreneurship, aligning rural youth training with emerging local enterprise opportunities.

Other policy integrations include leveraging the Agriculture Infrastructure Fund for cold chains and processing, connecting Union Ministry of Micro, Small and Medium Enterprises and food processing programmes with FPOs and SHGs and operationalising convergence portals (Union Ministry of Food Processing Industries/Union Ministry of Agriculture and Farmers' Welfare) to maximise scheme benefits.

Empowered panchayats are pivotal for coordinating these diverse schemes, ensuring that financial, technological and institutional resources translate into inclusive, community-driven development for each village. Achieving 100 per cent financial inclusion by 2047 requires tailored products for local food enterprises — seasonal credit, crop insurance and working capital for processing units.

Making the vision a reality

Local food systems offer a pathway that simultaneously addresses:

• food security for a projected 1.6 billion people;

• rural employment and income generation;

• environmental sustainability through reduced carbon footprints;

• cultural preservation of traditional food practices; and

• economic resilience through decentralised supply chains.

This sustainable transformation requires moving “from plough to platform and from dependency to dignity”. By 2047, India’s villages should not just feed the nation — they should be thriving centres of innovation, entrepreneurship and prosperity.

Success will be measured not only in production statistics but also in the prosperity of the 85 per cent of farmers who form the foundation of Viksit Bharat. Local food systems are not just about agriculture — they are about creating an inclusive, self-reliant and sustainable rural economy that makes every village a pillar of national strength.

Abhay Kumar Singh is a development professional

Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth