Reviving economy via agriculture

The intent should be accompanied by concrete policy measures on the ground 

Amid the ongoing measures to contain the spread of COVID-19 and the resultants challenges it presents, Nagaland Chief Minister Neiphiu Rio in the recent past has been batting the concept of a ‘self-reliant’ economy, noting  that this is a responsibility as well a challenge to move ahead.

One of the foremost mechanisms to achieve the objective, he stressed, was through Agriculture and Allied Sectors. The mantra was repeated many times last week if one follows the gist shared by the Chief Minister on micro blogging site Twitter after meetings with various stakeholders over the week.  

The sudden dawning of the fundamental importance of Agriculture and Allied Sectors, designated as primary sector of an economy, seems a pragmatic approach for a state limited by topography and other challenges in the other sectors. 

The unfolding challenges presented by the COVID-19 could be another contributing factor behind this realisation. For the Chief Minister, who is also Minister in-charge of Finance, more or less has nothing to say about the sector when he presented the state budget in February.

However, recognising the role of agriculture as a crucial generator towards a ‘self-reliant’ economy is a critical step and the realisation should not be a one-time affairs generated by current predicament for invigorating the sector, which in turn could revive the state’s dependent economy. 

To delineate intention and ground scenario, one need to look at the sectoral break-up in the State’s Gross Domestic Project.  Nagaland is basically an agrarian State with about 60 percent of its population engaged in the sector and the largest employer of the workforce with 45.47 % of the working population engaged in agricultural activities, informed the annual Nagaland’s Economic Survey compiled by the Department of Economics and Statistics.

The sector still remains as one of the largest contributors to the economy of the State; however, its share in the Gross State Value Added (GSVA) has been declining over the years as per the survey - from 31.05% in 2012-13 has declined to 27.61%in 2018-19. 

While secular decline in primary sector and corresponding increase in two other sectors – secondary and tertiary sector – is considered as normal trajectories of the progress of an economy, the case of Nagaland can be considered an exception. 

The decline is accompanied by virtually no growth in secondary sector – basically related to manufacturing and other activities, and enormous share of tertiary sector - largely driven by government sector employment and central largesse. As a result, the fall in share of primary sector is cause for concerns as it might actually be illustrative of fall in the real progress of the economy. 

It is not that the state is lacking in ‘vision’ to revive the sector. Incidentally, during Rio’s previous tenure as the Chief Minister, the Department of Agriculture released a vision document attractively titled as “Vision 2025 -Food for All.” Predictably, achieving self sufficiency and to improving productivity to achieve economically and commercially viable levels were some of the primary objectives. 

“It is hoped that this vision document will serve as a guide not only for Agri & Allied Departments but for the people of the State in general...to improve the economy of the State and people making Nagaland a better place to live in,” it philosophised. 

Evidently, nearly a decade after and only five years to go, the vision seems to be only on paper and proposal of what the department intent to do, not what it is actually doing. 

The re-recognition of the vitality of the sector by the Chief Minister is most welcome.  However, the ‘pipe dream’ must be accompanied by concrete policy measures and changes on the ground to revive and revitalise the sector.