India accounts for only about 2.4% of the world’s geographical area and 4% of its
water resources, but has to support about 17% of the world’s human population and 15% of
the livestock. Agriculture is an important sector of the Indian economy, accounting for 14%
of the nation’s GDP and about 11% of its exports. Agriculture in India is currently growing at
an average compound annual growth rate (CAGR) of 2.8%. About half of the population still
relies on agriculture as its principal source of income and it is a source of raw material for a
large number of industries. Accelerating the growth of agriculture production is therefore
necessary not only to achieve an overall GDP target of 8% and meet the rising demand for
food, but also to increase incomes of those dependent on agriculture and thereby ensure
inclusiveness in our society (Mehta et al, 2014).
There was a record food grains production of 259.32 million tonne during 2011-12, of
which 131.27 million tonne was during kharif season and 128.05 million tonne during the rabi
season. The increases in production of wheat, bajra, maize, groundnut and total oilseeds can
mainly be attributed to increase in yields, whereas the growth in production of gram, tur,
pulses, soybean and cotton is driven by a combination of both expansion in area and increase
in productivity. This situation necessitates the role of mechanization in terms of minimal use
of inputs, time saving and labour saving.
Increasing demand for industrialization, urbanization, housing and infrastructure is
forcing conversion of agricultural land to non-agricultural uses. The scope for expansion of
the area available for cultivation is limited. As per agriculture census 2010-11, small and
marginal holdings of less than 2 hectare account for 85% of the total operational holdings and
44% of the total operated area. The average size of holding for all operational classes (small
and marginal, medium and large) have declined over the years and has come down to 1.16
hectare in 2010-11 from 2.82 hectare in 1970-71 (Mehta et al, 2014).
Agricultural wages have traditionally been low, due to low productivity and large
disguised unemployment in agriculture sector. However, in recent years there is sharp
increase in agricultural wages due to economic growth and adoption of employment
generation policy like the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) and increase in minimum wages under the Minimum Wages Act. However,
agricultural wages, in general, are still much lower than the industrial wages. This further
strengthens the necessity for agricultural mechanization in a manner that is inclusive and
suitable for Indian conditions.