| Event Title: | ISAS Closed Door Session |
| Topic: | India’s Agrarian Distress and its Economic and Political Implications |
| Date/Time: | 02 July 2018 | 14:00 - 01:56 |
| Venue: | ISAS Board Room, Level 9, 29 Heng Mui Keng Terrace |
| Speaker/s: | Dr Ashok Gulati |
| Description: | The Seminar by Dr Ashok Gulati, Academic Visitor to the Institute of South Asian Studies, NUS and Infosys Chair Professor for Agriculture, was chaired by Professor C Raja Mohan. Dr Gulati mainly discussed about the agrarian distress that has been affecting the whole of South Asia, its implications on the social, political and economic landscape on the region and measurements to tackle this crisis in the long term. He also shared his insights on the how the current measurements can be improved and made sustainable for long term progress in the industry.
Agriculture is one of the most important industry for the whole of South Asia, especially India. According to the 2011 census, 54% of the workforce are engaged in such farm-related work. It is the main source of income and livelihood for many in the rural and even urban areas. More importantly, agriculture production has been seen to have a multiplier effect on other industries such as services as well. For example, while in India, agriculture directly contributes to about 16% of the Gross Domestic Product (GDP), because of the fact that the food and beverage industry depends largely on agricultural products for sales, agriculture can actually contribute up to 25-30% of the GDP. As such, it is important to ensure that the government devotes enough resources and designs effective policy reforms to ensure that this industry is able to sustain itself. From 2002-2014, the state of Gujarat where Mr Narendra Modi served as the Chief Minister, registered the highest rate of agricultural growth amongst all other states at 8% per annum which was unheard of in Indian history. The main driver of this growth came from the cotton revolution. During this period, Monsanto, a multinational agrochemical and agricultural biotechnology corporation helped to develop the BT cotton trade that brought in many profits. The success of the agriculture sector in Gujarat, mainly in the Saurashtra region, during this period manifested into political gains for Modi who managed to retain his power for three consecutive terms. However, over the last 4 years, this situation has changed drastically. Owing to the massive agrarian crisis in many parts of Gujarat, many farmers have become increasingly dissatisfied and frustrated with the government. This has been reflected during the Gujarat elections in 2017 where Mr Modi lost power over the Saurashtra region. The case of Gujarat is a classic micro-state level example of the spill over effect of the agrarian distress onto the political landscape. |