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Link between Jobs, Farming, and Climate

Link between Jobs, Farming, and Climate

Tag:GS-3|| Economy|| Agriculture|| Sustainable Agriculture & Organic Farming

 What is the issue?

  • In September 2019, a teenager Greta Thunberg addressed the United Nations climate change summit, which had an impact.
  • But, the Indian government is all-absorbed by the news of slowing economy.

What should we concern about?

  • Economic growth slowdown
    • It is true that India’s economic growth has slowed over the past few quarters— over the past 2½ years if we go through annual growth rates.
    • The goal of the Indian government is to boost the economy.
    • Those who have heard the address of Greta Thunberg may not be as worried about economic growth as the government is about it.
    • Mindless consumption
    • Globally, the cause of climate change is industrial growth powered by mindless consumption.
  • Income levels
    • But India does need some growth as income levels here are still very low.
    • However, even with less production, the issue of low incomes can be tackled as long as it is of the appropriate type.
    • Therefore, slowing growth in India cannot be defined as a crisis.

 Rural unemployment

  • Unemployment is the only economic attribute that reacts positively to the issue of whether it is actually in crisis.
  • Periodic Labour Force Survey Report 2017-18 points to a dramatic increase in the unemployment rate since 2011-12.
    • In addition to the’ Urban Females ‘ category, the estimate of unemployment shows that it has been the highest in the 45 years since 1972-73.
    • It’s double what it was in 2011-12, even for‘ Urban Females.’
    • It’s four times the median of ‘Rural Males’ for the 40 years up to 2011-12.
  • These statistics will reassure us that there is a severe employment situation in the country.
  • Government responses to slow growth
    • A number of measures have been introduced, the most notable of which is a cut in the corporate tax rate.
    • The lowering of tax was intended as a solution for declining corporate investment.
    • But if the degree of corporate investment represents a certain underlying reality, we can only get to the root of the problem by tackling the latter.
    • Urban demand drives a large part of corporate sales.
    • The government is not listening to their voices because they are less coordinated than some other corporate groups.
    • The rural image is important not only because there are the largest numbers, but also because of their low incomes.
    • This means that the future growth of demand for much of industrial production is likely to come from there.

 Why is there a decrease in production?

  • Crop agriculture
    • Recent crop farming history is one of the reasons why rural income is so slow-growing. It has shown no growth since 2008-2009.
    • It would be compensated in good years by households incurring consumer debt in poor crop years.
    • It means that even in good years, consumption does not grow significantly.
  • Low export growth
    • Other factors vary from low growth in exports to a banking sector crisis.
    • Low agricultural output explains weak domestic demand significantly.
  • Unstable agricultural production
    • Unstable agricultural production reduces the demand for agricultural labour, and subsequently the supply of agricultural labour, resulting in increased unemployment.
  • Investment
  • The investment rate has been reported to have decreased.
  • This is real, but it may be a result of poor farming
  • Private investment is both driven and driven by demand production.

What might be the long-term solution?

  • Agriculture performance
    • Any long-term solution to the unemployment problem linked to slow economic growth should start with agricultural production.
    • Observing crop farming performance since 2008-09, India may be experiencing something completely new.
    • India has long recognized a crop yield cycle correlated with annual rainfall fluctuations, but we are now experiencing stagnation.
    • Now, unlike in case of a cycle recovery cannot be presumed easily.
    • Agricultural scientists’ expertise is needed to confirm the factors that this state is responsible for.
  • Ecological Factors
    • Consideration could be given to the role of environmental factors in causing agricultural stagnation.
    • Land loss leads to scarcity which raises agricultural costs.
    • Most of these findings are man-made specifically because they contribute to the over-exploitation of earth’s resources.
  • Need for a Deeper Adaptation
    • In order to address these factors, a deeper adaptation is needed.
    • Intelligent leadership, allocation of resources and improvements in farming behavior would all have to be combined for this.
    • The volatile agricultural sector, which makes economic growth fragile, has failed to provide an adequate response to economic policy.
    • Policy focus is disproportionately on the tax rate, the ease of doing business in the non-agricultural sector and a fussy adherence to a dubious fiscal-balance target.
    • It is time to draw in the public agricultural institutes and farmer bodies for their views on how to save the sector.

Way forward

  • Action on multiple fronts, including investments in human capital, the rebirth
     of the productive industries, and initiatives to promote small entrepreneurship will be needed to address the severe unemployment in the country.

 Mains model question

  • What measures the government need to take to increase the public as well as private investment thereby helping in generating employment? Explain