The MP Model in agriculture

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Last Updated21/02/2023

India is today a $3.5 trillion economy. As per the IMF forecast, If the current growth trend continues, the country is likely to be a $5.4 trillion economy by 2027.
There are lessons from Madhya Pradesh’s agriculture model for inclusive sustainable growth.

India seems to be on the right path and is doing pretty well especially when compared to its progress in the first six decades after 1947.
As per IMF, it took India almost 59 years since Independence to become a $0.95 trillion economy in 2006. But then it became a $2.3 trillion economy by 2016 it added $1.35 trillion in 10 years.
In 2022, it became a $3.5 trillion economy by adding $1.2 trillion in just six years.
If India stays this course, the country could rise to a $25 to $30 trillion economy by 2047.

Inclusiveness measurement and performance: Measured by looking at the record of the laggard states, especially the so-called BIMARU states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh), and also the performance of the agricultural sector that engages the largest share of workforce 46.5% in 2020-21.
GDP at the state level: The country averaged a GDP growth of 6.7% per annum in this period and its agri GDP growth stood at 3.8% per annum. This is satisfying, though not as outstanding as China’s performance.
Major states: Gujarat topped the list in overall GDP growth at 8.9 % closely followed by Uttarakhand (8.7%), Telangana (8.6%) and Haryana (8%). At the bottom of this list were Jammu and Kashmir (5.2%), Assam (5.4%), West Bengal (5.5%), Uttar Pradesh (5.6%) and Jharkhand (5.7%).
Madhya Pradesh (MP): MP is the only state whose agriculture contribution to overall GDP has increased to 40%, as against 18.8% at the all-India level its model should aptly be described as inclusive and sustainable.
Jharkhand: Jharkhand has performed exceptionally well in agriculture with a growth rate of 6.4% per annum, largely driven by diversification towards horticulture and livestock.
Punjab: In contrast, the Green Revolution champion Punjab hasn’t done well. Its Agri-GDP growth was a meagre 2% per annum over this period.

Highest growth rate: Madhya Pradesh has clocked the highest growth rate in agriculture at 7.3%. Its overall GDP growth is a respectable 7.5%.
Agri-GDP growth is above India level: The state’s agri-GDP growth is way above the all India agri-GDP growth and the state is a shining example of doubling the contribution of horticulture in its value of agriculture and allied sector.
Well-diversified portfolio in agriculture: MP has made its mark as a top-notch player in tomato, garlic, mandarin oranges, pulses especially gram and soyabean cultivation. MP is also the second-largest producer of wheat after UP, and the third-largest milk producer after UP and Rajasthan.
Doubled irrigation coverage: It is following a well-diversified portfolio in agriculture while doubling irrigation coverage from 24 to 45.3% of its gross cropped area over the last two decades.

Madhya Pradesh agriculture model suggests that a well-diversified portfolio in crops is behind the high growth in the farm sector. This is inclusive and sustainable and offers a path for other Indian states.