Describe the Impact of Globalisation on Indian Agriculture

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Impact of Globalisation on Indian Agriculture and on several aspects of the county’s economy has been significant. However, agriculture in India faltered. Being one of the primary occupations in the rural areas of India, agriculture is of great importance. Globalisation has had a great impact on it.

The process of contact and integration between individuals, organizations, and governments on a global scale is known as Globalisation. Since the 18th century, Globalisation has accelerated due to advancements in communications and transportation technologies.

Impact of Globalisation on Indian Agriculture

The impact of globalisation can be seen during colonisation. In the nineteenth century, European traders came to India to trade Indian spices exported to various countries. Farmers in south India were encouraged to grow these crops due to high demand. Staple crops were profitable and had a good export potential in the limited market.

Here are some of the agricultural Impact of globalisation:

  • High financial returns
  • Rural social order transformation
  • Extraction of natural resources
  • Forced labor

When the Indian economy opened up to the global market in 1990, Indian agricultural products struggled to compete, despite being a major producer of rice, cotton, coffee, rubber, tea, jute, and spices. This was due to the fact that agriculture is heavily subsidised in many developed countries. The need of the hour is to help marginal farmers by providing subsidies and making agriculture profitable.

Effects of Globalisation on Agriculture

Agriculture is still being impacted by globalisation. It can contribute to the national economy with government support and policies that benefit agricultural activities. Some other effects of Globalisation on Agriculture have been listed below.

  • Any event in another part of the world can have an impact on the price of agricultural commodities in India.
  • Possibility of Exploitation: Despite low labour costs and high productivity, our products cannot compete with heavily subsidised agricultural products from other countries.
  • The availability of modern agricultural technologies such as food processing industries, farming equipment, etc.
  • Increased output and productivity
  • National Income Growth
  • New job opportunities
  • A rise in trade share Growth of agricultural exports
  • Poverty reduction

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