The survey, which evaluates current economic performance and sets goals for future growth, further said that once the incomes of smallholders increase, they will demand manufactured goods, spurring a manufacturing revolution. “That is what happened in China between 1978 and 1984 when the real incomes of farmers doubled in just 6 years. India is well-placed to emulate this.”

According to the document, the performance of the agriculture sector remains critical for the economy’s growth and has been growing at an average growth rate of 4.18 per cent over the last five years. The growing significance of allied sectors such as animal husbandry, dairying, and fisheries in enhancing farmers’ income suggests that greater emphasis should be placed on tapping into the potential of these activities to boost farmers’ incomes, it said.

The survey stated that promoting crop diversification towards oilseeds, pulses, and horticulture requires addressing critical issues such as investment in agri-infrastructure, credit accessibility, and appropriate market institutions. It said MSP (Minimum Support Price) has incentivised crop diversification and there is evidence that MSP has a positive and statistically significant effect on retail prices of all crops, with a stronger effect for those crops where procurement is substantial, such as paddy and wheat.