Farm sector’s continued poor performance, an area of concern for Tamil Nadu

Tamil Nadu, a southern economic powerhouse, presents a fascinating case study in India's evolving economic landscape. While the state consistently ranks among India's top economies, demonstrating impressive overall growth, a closer look reveals a significant underlying structural challenge: the persistent underperformance of its primary (farm) sector. This phenomenon is not unique to Tamil Nadu but highlights a broader national trend of sectoral transformation, where the secondary (manufacturing) and tertiary (services) sectors increasingly drive economic expansion, often leaving agriculture struggling.

Historically, India has been an agrarian economy, with agriculture contributing the lion's share to its GDP and employing the majority of its workforce. However, post-economic liberalization in 1991, and especially in the last two decades, India has witnessed a significant structural shift. The services sector, followed by industry, has emerged as the primary engine of growth, a pattern often observed in developing economies transitioning to higher income levels. Tamil Nadu exemplifies this trend, with its robust manufacturing base (automobiles, textiles, electronics) and thriving services sector (IT, healthcare, tourism) propelling its Gross State Domestic Product (GSDP) upwards. This impressive growth, however, masks the distress in the agricultural sector, which continues to grapple with a myriad of issues.

Key stakeholders in this scenario include the millions of **farmers and agricultural laborers** whose livelihoods are directly dependent on the sector's performance. Their income stability, access to credit, and overall well-being are directly impacted. The **State Government of Tamil Nadu** is a crucial stakeholder, responsible for formulating and implementing agricultural policies, providing subsidies, developing irrigation infrastructure, and ensuring market access. The **Central Government** also plays a significant role through national schemes, financial allocations, and policies related to minimum support prices (MSP), crop insurance, and inter-state trade. **Consumers** are indirectly affected by fluctuations in food prices and supply stability, while **industries** like food processing, textiles, and agro-based manufacturing rely heavily on agricultural inputs.

This continued poor performance of the farm sector in Tamil Nadu, despite overall growth, matters profoundly for India. Firstly, it underscores the challenge of **inclusive growth**. While the state's economy grows, a significant portion of its population, particularly in rural areas, may not be benefiting equally, leading to widening income disparities and potential social unrest. Secondly, it impacts **rural development and poverty alleviation**. Agriculture remains the largest employer in rural India, and its stagnation can exacerbate rural distress, leading to increased rural-urban migration, putting pressure on urban infrastructure and resources. Thirdly, for a country like India, **food security** is paramount. A struggling agricultural sector, even in a prosperous state like Tamil Nadu, can have long-term implications for the national food basket and self-sufficiency. Tamil Nadu is a significant producer of rice, sugarcane, groundnut, pulses, and cotton, and its agricultural health is vital for national supply chains. Finally, it highlights the need for a balanced approach to economic development that doesn't overlook the foundational sector.

From a constitutional perspective, agriculture is primarily a **State Subject** under Entry 14 of the **Seventh Schedule** of the Indian Constitution. This means state governments have the primary legislative and executive powers over agriculture. However, the Central government also influences agriculture through entries in the Concurrent List (e.g., Economic and Social Planning – Entry 20) and through national policies and funding. The **Directive Principles of State Policy (DPSP)** are also highly relevant: Article 38 mandates the state to secure a social order for the promotion of welfare of the people, aiming to minimize inequalities. Article 39 directs the state to secure the right to an adequate means of livelihood, while Article 43 speaks of securing a living wage. Most pertinently, Article 48 directs the state to organize agriculture and animal husbandry on modern and scientific lines and to preserve and improve the breeds and prohibit the slaughter of cows and calves and other milch and draught cattle. Various central schemes like the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), and the e-NAM platform, alongside state-specific initiatives, aim to address these challenges.

Looking ahead, the future implications are significant. Tamil Nadu, like other states, will need to implement targeted policies to rejuvenate its agricultural sector. This includes promoting **crop diversification**, encouraging **climate-resilient agriculture** through sustainable practices, improving **irrigation efficiency** (given increasing water scarcity), enhancing **market linkages** and value addition through food processing, and leveraging **technology** (precision farming, AI, IoT) to boost productivity and efficiency. The state also needs to address issues of land fragmentation, farmer debt, and access to institutional credit. Failure to address these structural imbalances could lead to persistent rural-urban divides, social inequalities, and a less resilient overall economy, despite impressive headline growth figures. The challenge lies in achieving 'growth with equity' and ensuring that the benefits of economic progress are shared by all sectors and sections of society."