Over the years Indian economy has diversified from a mainly agricultural economy. In 1950 agriculture contributed about 55% of GDP with about 80% population being dependent on agriculture. In 2019 contribution of agriculture to the GDP was 15-17% with about 50% population depending on agriculture. It is a well known global fact that greater the contribution of agriculture and allied activities in GDP and/or employment, the more economically backward a country is.
Apart from these universal truths, the Indian farm/agriculture sector is further riddled with problems of extremely small holdings ( no advanced cum prosperous country of the world has a land holding of less than about 16 hectares per individual), whereas in India 95% individual holdings are less than 1 hectare. Additionally the procedures and controls on selling of farm produce coupled with the middlemen, commission agents, arhatiyas and corruption empowered cabals of all kinds make best use of economic compulsions of hapless and helpless farmers.
