Why reports of agriculture’s demise are greatly exaggerated
Live MintBengaluru/New Delhi: Farmers may be looking for alternative avenues of income, but it is too soon to write off the significance of agriculture in rural India, data from the recently released Nabard All India Rural Financial Inclusion Survey shows. An initial reading of the survey findings seems to suggest that earnings from farm-related activities—cultivation and livestock rearing—contributed just 43% to average monthly income of agricultural households in 2015-16, suggesting the growing importance of non-farm sectors in rural India. The fact that farm incomes comprised 57% of overall incomes of agricultural households despite a drought only reinforces the importance of the farm economy in rural India. Agricultural households accounted for 58% of all rural households, data from the 2012-13 NSSO survey shows. The NAFIS data also shows that 13% of agricultural households had only a single share of income, while 50% of them had two sources of income.