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India is predominantly a rural country with 2/3(two third) population and 70% workforce residing in rural areas. Rural economy constitutes 46 per cent of national income. Traditionally, agriculture is the prime sector of rural economy and rural employment. The transition in composition of output and occupation from agriculture to more productive non-farm sectors are considered as an important source of economic growth. Economic studies on rural India have focused mainly on changes in rural employment, by sectoral aggregation between agriculture and non-agriculture. In India there needs to have planning and implementation for development of entrepreneurial programs are essential because of over-dependence on agriculture for employment. Entrepreneurship development in rural industries appears to be the best potential alternative to find employment avenues for the rural population. Since Entrepreneurship is one of the key driver for economic development of any country, promotion for agriculture entrepreneurship is key element to turn agricultural more productive and profitable for rural people. The present study examines long-term changes in Employment and Future Growth in Rural area, Modern Agriculture as output growth and employment and Adaptation of new agriculture model to overcome basic challenges in Indian Agriculture. Also the Study analyses the changing behavior in Agriculture sector in recent year in India. For this study, Secondary data has been considered for analysis. The findings of the study may be used to suggest strategy for future development of India's rural economy.
The 'Make in India' Strategy adopted by the Prime
Minister Shri Narendra Modi aims to facilitate
investment, foster innovation, entrepreneurship,
enhance skill development in the country. Mahatma
Gandhi has rightly pointed out that “India lives in
villages”. Villages comprise the core of Indian society
and represent the real India. Rural entrepreneurs are
those who carry out entrepreneurial activities by
establishing industrial and business units in the rural
sector of the economy. In other words, establishing
industrial and business units in the rural areas refers to
rural entrepreneurship. Entrepreneurship can play an
important role in rural development. Agriculture
continues to be the backbone of rural society. 70 Percent
farmers held by small & marginal farmers are resulting
in overcrowding on the agricultural land and
diminishing farm produce. This results in migration of
farm worker in large numbers to the urban areas. Land
being limited and unable to absorb the labor force in
agriculture, there is a need to develop rural industries
to solve rural unemployment and rural migration to
Growth and development of rural economy is an essential pre-condition to the development of the country as a whole. The gap between rural and urban disparities should be lessened. The standard of living of the rural population is not up to mark and need to improve. Entrepreneurship in rural sector considering available sources may provide an answer to the above problems.
Indian rural sector is no longer primitive and isolated. Therefore, if entrepreneurships encouraged in rural and tribal areas looms large to solve the problems of poverty, unemployment, and economic disparity, poor utilization of rural capacity, low level of standard of living and backwardness of Indian economy. Rural industrialization is viewed as an effective means of accelerating the process of rural development. Government of India has been continuously assigning increasing importance and support for the promotion and growth of rural entrepreneurship. According to latest definition of Government of India, "Any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant and machinery is classified as a village industry." Rural entrepreneurship is a new field in the area of entrepreneurship research. It has become one of the supportive factors for rural economic development and agribusiness. In this backdrop, the present paper addresses the problems and challenges for development of entrepreneurship in the context of rural India.
In context of Indian scenario where large scale of people are living in rural area, it becomes necessary to develop the economic environment for rural people to make the rising India. Although there are so many promotional schemes are governing by the government but due to various factors like illiteracy, non-availability of facilities, life-style challenges, lack of knowledge about the new farming system, lack of resources etc. people from rural area still not moving to advance farming.
Entrepreneurship is the act of being an entrepreneur, who starts any economic activity for being selfemployed. The entrepreneurial activity is governed by varying combination of socio-economic, psychological, cultural and other factors: Caste/religion, Family background, Level of education, perception, Occupational background, Migratory character, Entry into entrepreneurship, Nature of enterprise, Investment capacity and Ambition.
Considering the growing unemployment in rural areas and slow growth of the agricultural sector, it is necessary to tap the opportunities for promoting entrepreneurship in agriculture, which in turn can address the present problems related to agricultural production and profitability. An “agricultural entrepreneur” is an individual or group with the right to use or exploit the land or other related elements required to carry out agricultural, forestry or mixed activities. (Suarez,1972)In a simple word, we can define Agri-entrepreneur as “People who is developing the employment using agriculture as a business.
Piore and Sable (1984), they concluded in their book, “The second industrial Divide” that rural economy will be more effective if government try to improve business condition in rural areas. Petrin (1994) in article found that entrepreneurship can play an important role in development of rural area to a greater extant. It works as vehicle to increase personal satisfaction for people and families of rural areas. Gavian et al. (2002), in their study , that have find that SMEs are plat well poised to react the increased demand by creating job. Sherief, (2005) focused on factors of rural entrepreneurship will helpful for its improvement . in this study they found that development of entrepreneurship in rural area is most essential to accelerating economy development. Mehta, (2011), in this study, he found that many Indian origination including MNCs creating business opportunity in rural area of India. The study will be supportive for the different organizations to figure arrangements and approaches so as to help the rural entrepreneurship in India. This may make the Indian rural business sector as a basic power in the worldwide e conomy. In hor t i cul tur e , ut i l i z ing new entrepreneurial exercises is moderately simple since agriculturists for the most part have numerous valuable assets available to them, for example, land, structures, apparatus, work, systems, and so on. Sharma, Swati, Vyas and Divya (2011) demonstrated that different social, financial, political and environmental issues in provincial regions in creating nations like India make challenges in livelihood, diminishing rural generation and expanding nourishment lack. This has come about a colossal effect on the residential generation, livelihood and so forth. To a specific degree, these issues can be understood by creating entrepreneurship in rural India.
All data have been collected through articles, journals, magazines, books, and website etc. the objective of this paper is to bring out the growth, Opportunity and Prospective of Agropreneurship in India.
India has the 10th largest arable land resources in the
world. With 20 agri-climatic regions, all 15 major
climates in the world exist in India. The country also
possesses 46 of the 60 soil types in the world. Growth in
Gross Value Added (GVA) by agriculture and allied
sectors is estimated at 3 per cent in 2017-18**. Strategic
geographic location and proximity to food importing
nations favor India in terms of exporting processed
foods. During 2017-18* crop year, food grain
production is estimated at record 284.83 million tones.
In 2018-19, Government of India is targeting food grain
production of 285.2 million tones. India is the largest
producer of spices, pulses, milk, tea, cashew and jute;
and the second largest producer of wheat, rice, fruits
and vegetables, sugarcane, cotton and oilseeds. India is
currently the world's fourth largest producer of
agrochemicals. India has the largest livestock
population of around 512 million.
Also India is one of the largest manufacturers of farm
equipment such as tractors, harvesters and tillers. India
accounts for nearly one-third of the overall tractor
Tractor sales in the country are expected to increase 11- 13 per cent in FY19, while the tractor industry is expected grow at 8-10 per cent between FY17-22.
Note: *as per 4th advance estimates,
** as per 2nd advance estimates
Source: Ministry of Agriculture, Government of India, MOSPI, BCG, Crisil
As per Report of 'India Brand Equity Foundation', Indian agriculture sector has made significant progress in Agriculture and Allied Sector, below progress chart has been shown the progress per year in US $ billion: Source: Ministry of Agriculture, Print Release, RBI, Aranca Research, MOSPI, Central Statistics Office (CSO)
There are two major agricultural seasons in India:
Kharif and Rabi. Kharif season lasts from April to
September (summer); rice (paddy) is the season's main
crop. Rabi season lasts from October to March (winter);
wheat is the season's main crop. As of October1 2018,
total area sown with kharif crops in India reached
105.24 million hectares .
Progress of Kharif and RABI corps are shown in below graph:
Since 2010, production as well as yield of both major
crops - rice and wheat has increased significantly. As
per fourth advance estimates, production of rice is
estimated at record 112.91 million tons while
production of wheat is estimated at 98.70 million tons in
2017-18 crop year.
Production of horticulture crops in India is estimated at record 306.82 million metric tons (MMT) in 2017-18, implying a CAGR of 3.82 per cent between FY08-18. Below Graph shows the ratio of Increasing Production Note: * As per 4th advance estimates, **as per 3rd advance estimates, 1as of September 26, 2018, *** estimate as per the Indian Cotton Federation 211.2
Source: Ministry of Agriculture and Farmers' Welfare ØIncreasing Production in Fruits from 2007-08 to 2017-18
As per the First Advance Estimate the area under fruit crops during 2017-18 is 6.4 m. ha with a total production of 94.8m. MT. During the period (2007-08 to 2017-18), production of fruits increased by about 44.6% while the area increased by about 9.7%. (2007-08 to 2017-18) Comparative details of area, production and productivity of fruit crops are given are in Figure 1.
Sources http://www.dowrorissa.gov.in/Training Programme/2018/FEBRUARY/ICAR/materials/dy3 /Overview%20of%20Organic%20Farming.pdf India has retained its status as the second largest producer of fruits in the world.The country is first in the production of fruits like mango, banana, sapota, pomegranate and aonla. India ranks second in global production of fruits and vegetables and are a leading exporter of mangoes and bananas.
Vegetables are an important crop in horticulture sector,
occupying an area of 10.1 million a during 2017-18 (1st
Estimate) with a total production of 180.7 million
tonnes with average productivity of 17.8 tonnes/ha. In
fact vegetables constitute about 59% of horticulture
production. During the period (2007-08 to 2017-18),
area and production of vegetables increased by 30%
and 41% respectively. The comparative details are
depicted in the Figure 2.
Sources http://www.dowrorissa.gov.in/Training Programme/2018/FEBRUARY/ICAR/materials/dy3 /Overview%20of%20Organic%20Farming.pdf
Simple random sampling was used to survey ten
manufacturing companies in Port Harcourt, Rivers State
from Manufacturers Association of Nigeria
Sample size of seventy (70) was determined using
Krejcie and Morgan (1970).
India continued to be second largest producer of vegetables after China. India is a leader in production of vegetables like peas and okra. Besides, India occupies the second position in production of brinjal, cabbage, cauliflower and onion and third in potato and tomato in the world. Vegetables such as potato, tomato, okra and cucurbits are produced abundantly in the country.
India is on the 18th rank with contributing 0.6 percent
share in global floriculture trade. During the last
decade, export increased at a CAGR of 4.33 percent. The
domestic Indian market is growing at the rate of 25 per
cent per year in the country as a whole. About 249
thousand hectares area was under cultivation in
floriculture in 2014-15. The states like Karnataka, Tamil
Nadu, Andhra Pradesh, West Bengal, Maharashtra,
Rajasthan, Delhi and Haryana have emerged as major
floriculture centres in recent times.
Flowers are categorized into cut flowers and loose flowers as followings:
Fig.1 : Showing leading states in Cut Flower Production
and Loose Flower Production in India
Entrepreneurial Opportunity in Agriculture
Nowadays, Easy access to technology, emergence of
micro financing, liberalized government rules,
awareness and training programs on agri and allied
sectors and finally changing mindset of the highly
qualified people to go for self-employment in the field of
agriculture have contributed significantly in enhancing
the potentiality for entrepreneurship in India.
Agriculture have several areas of entrepreneurship which include the activities like Dairying, Goat earing, Rabbit rearing, Floriculture, Fisheries, Shrimp Farming, Sheep rearing, vegetable cultivation, nursery farming, farm forestry.
The possible areas of entrepreneurship in agriculture are:
Diversification in agriculture involve shift in cropping
pattern from traditionally grown crops to more
remunerative crops like oilseeds, pulses, fodder crops,
horticulture, medicinal and aromatic plants,
It also includes livestock and fishery enterprises and small scale agro-based industries. Diversification increases the employment opportunities, optimum use of resources and profitability.In above graph Importance of Agriculture Diversification has been explained as Forces to Impacting the diversification
India has a lot of potencial in the field of Organic Farming, this is started mostly as a small farm agriculture system with operation also being farm less than 1 acre in size. Form Farms under 10 acres in size, farming is mostly labor intensive and requires lesser mechanization. Also Organic Farming tends to reduce the cost as it removes the extra cost of synthetic fertilizers used in conventional farming method. Organic farming results in clean very good quality products. Given the current state of Indian agriculture, Organic Farming seems to have a lot of scope in Uplifting the condition of Indian Farmers. The importance of organic farming is growing very fast particularly in international market. This sector provides great business opportunities to agro-based entrepreneur. Area under organic farming is increasing but unable to meet the demand of organic produce.
Floriculture is the growing of cut flowers, potted flowering and foliage plants, and bedding plants in greenhouses and/or in fields. There are several thousand different species of flowers and plants that are grown as commercial crops. Cut flowers include such crops as roses, freesia, alstromeria and snapdragons. Some of the favourite flowering potted plants that are available year-round are African violets, orchids, cyclamen and potmums (potted Chrysanthemums). Some seasonal flowering plants are an important part of our traditions, for example, poinsettias for Christmas and Easter lilies for Easter. Maharashtra, Karnataka, Andhra Pradesh, Haryana, Tamil Nadu , Rajasthan , West Bengal have emerged as major floriculture centers.
About 249 thousand hectares area was under Cultivation in floriculture in 2015-16. Production of flowers are estimated to be 1659 thousand tons loose flowers and 484 thousand tons cut flowers in 2015-16.
The country has exported 20703.46 MT of floriculture products to the world for the worth of Rs. 507.31 crores/78.73 USD Millions in 2017-18. U S A, Netherland, U K, Germany and United Arab Emirates were major importing countries of Indian floriculture during the same period.
Fruits & Vegetable Seed in India is being viewed as a high growth Industry. Most seeds normally remain viable for 2 or 3 years if stored under good conditions. Therefore, buy only from seed firm of known integrity. High yielding, high price seeds should have 90% germination. For germination of seeds adequate moisture, temperature and aeration are essential. The requirement of temperature for various fruits and vegetable seeds varies markedly. Some seeds do not germinate at low temperature while some others at high. Usually germination is optimum in between 400 F and 600 F.
The major seeds which are grown in India are Beet Seeds, Cabbage Seeds, Cauliflower seeds, Fruit Seeds, Onion seeds, Pea Seeds, Pomegranate seeds, Radish Seeds, Tamarind Seeds and Other Seeds etc.
The country has exported 14463.14 MT of Fruits and Vegetables Seeds to the world for the worth of Rs. 670.9 crores/ 104.03 USD Millions during the year 2017-18.
U S A, Netherland, Pakistan Ireland, Bangladesh and Thailand were major importing countries of Indian seeds during the same period.
The Indian Council of Agricultural Research (ICAR) is
an autonomous organization under the Department of
Agricultural Research and Education (DARE), Ministry
of Agriculture and Farmers Welfare, Government of
The Council is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country. With 101 ICAR, institutes and 71 agricultural universities spread across the country this is one of the largest national agricultural systems in the world.
The ICAR has played a pioneering role in ushering Green Revolution and subsequent development in agriculture in India. Through its research and technology development that has enabled the country to increase the production of foodgrains by 5.4 times, horticultural crops by 10.1 times, fish by 15.2 times, milk 9.7 times and eggs 48.1 times since 1951 to 2017. It has played a major role in promoting excellence in higher education in agriculture. It is engaged in innovative areas of science and technology development and its scientists are internationally acknowledged in their fields.
There are several schemes available to promote new startups, facilitating training to farmers on agrientrepreneur. Listed below some of the major schemes operated in India to boost the Agriculture as an entrepreneur.
Although there are so many schemes available for the farmers in respect of Agriculture, Rural development. But still there are some challenges which cannot be ignore and all the responsible body like Central Govt., State Govt., Local Authorities and Corporate leaders need to overcome with some solutions. There are some 125 IUJ Journal of Management Vol. 7, No. 2, Dec. 2019 basic challenges has been highlighted below as following:
Shortage of Funds - Lack of finance available to Agri
entrepreneurs is one of the biggest problems. Major sources of finance in rural areas are loans from regional rural banks or from zamindary but their rate of interest are usually very high.
Lack of infrastructural facilities -
The growth of Agri entrepreneurs is not very healthy in spite of efforts made by government due to lack of proper and adequate infrastructural facilities.
Risk element - Agri. entrepreneurs have less risk bearing capacity due to lack of financial resources and external support
Competition - Major problems faced by marketers are
the problem of standardization and competition from
large scale units
Mediators (Distribution Channel) - The Agriculture entrepreneurs are heavily dependent on distribution channel for marketing of their products who pocket large amount of profit.
Lack of Advance technology - Information technology is not very common in rural areas. Legal formalities Agri-entrepreneurs find it extremely difficult in complying with various legal formalities in obtaining licenses due to illiteracy and ignorance Lack of Modern Machinery – The growth of agriculture is based on advance supporting machinery and tools. In Indian context farmers is not having such capability to cultivate the farms with modern machinery which result as time taken processing for agriculture.
Gross values added by agriculture and allied sectors are
attending satisfactory growth. India rank 2 nd in global
production of fruits and vegetable continuous to be a
leading exporter of mangoes and banana; along with
producing potato, brinjal extra in abundant quantity.
India is rank significantly on the promotion of global
floriculture trade. There are numerous opportunity of
agropreneurship by means of diversification, organic
farming, and floriculture with the development of
hybrid seeds of fruits and vegetables.
There are several government schemes to promote new startups in the field of agropreneurship like agri-udaan program, state agriculture marketing bank, NCOSAMB besides providing adequate subsides to the player in this field.
After this study , it can also be found that besides the positives being under taken to cater there are several challenges like financial, marketing, and management challenges in order to make a prolific statement in the sector.
Agricultural entrepreneurship shares many
characteristics of "generic" entrepreneurship, but also
has its distinct features due to the specific context of the
agricultural sector. With better industrial and
entrepreneurial education discipline, entrepreneurs
will naturally take advantage of the vast human
resource availability. It is clear that there is a great
scope for entrepreneurship in agriculture, only
effective management of agri elements an individual
can tap this potentiality with risk bearing capacity, and
a quest for latest knowledge in agriculture sector can
prove to be right agriculture entrepreneurs.
The agriculture sector has a large potential to contribute to the national income while at the same time providing direct employment and income to the numerically larger and vulnerable section of the society. Agriculture entrepreneurship is not only an opportunity but also a necessity for improving the production and profitability in agriculture sector. Floriculture production and market is booming now days due to increase in demand both in national and international market. USA and United Kingdom are two best markets for India floral export, but national market is very much fragmented, that gives emerging of many associations. Understanding of major market at both brick and click way, gives the stakeholders a better way of understanding of floral market. A shift from 'agriculture' to 'Agroepreneurship' is an essential pathway to refresh Indian agriculture. While the share of pure agriculture in GDP may decline, the share of Agri Entrepreneurship is bound to go up with the demand for value added products continuously increasing.
Agri entrepreneurship is also the answer to removal of rural poverty in India. Therefore, there should be more stress on integrated rural development programs. The problem is that most of the rural youth do not think of entrepreneurship as the career option. Therefore, the rural youth need to be motivated to take up Agri based entrepreneurship as a career, with training and sustaining support systems providing all necessary assistance. There should be efficient regulated market and government should lend its helping hand in this context.
Following are the recommendation has been
underlined to make new India as Agri India: