EXPLORING DIVERSIFICATION IN INDIAN AGRICULTURE: EVIDENCE FROM INDIA'S RECENT DECADE

Agriculture diversification encompasses a range of activities apart from crops, and this diversification is an important strategy in addressing the issues confronting the agricultural sector of India. Some of these issues include climate change, market volatility, and risk reduction. This paper explores the trend and intensity of agricultural and crop diversification in India from 2014-15 to 2023-24. The study is based on secondary data from government reports, namely the Economic Survey and the Agriculture Statistics. The study focuses on the contribution made by crops, livestock, forestry, and fisheries to Gross Value Added in the sector. The two statistical tools have been used to measure crop diversification i.e., the Herfindahl-Hirschman Index (HHI) and Simpson's Index of Diversification (SID). The findings of the study indicate that in the last ten years, the process of diversification has constantly increased crop diversification as well as the diversification of agricultural activities as it reflects a constant downward shift of HHI and the SID is increasing accordingly. These are a testament to the increased significance of diversification in the agriculture sector which not only enhances its resilience to climate change but also the stability of farm earnings.