The plight of farmers in rural India is very pathetic because of the absence of finance, irrigation facilities and means of transportation. It all these facilities are provided to them, the income and employment of the agricultural sector can be increased as all of these are growth stimulating agents.
If irrigation facilities are provided to the farmers, many of them would be able to harvest a second crop during the rabi season in addition to the harvest of the Kharif season. This will provide employment to people for an additional period of time. Subsequently, it will result in the generation of more employment opportunities within the agricultural sector itself. This will reduce the problem of underemployment prevalent in the sector. This will increase production.
If an investment is made in the development of infrastructure, transportation and storage facilities, especially in the rural areas that stand cut-off from the cities, the farmers will be able to sell their products in both the domestic and foreign market. This will provide productive employment opportunities to farmers and the people engaged in the service sector like transportation, storage and trade.
The important crisis of the rural agricultural sector is the dominance of moneylenders who charge a higher rate of interest. If the banks and other local institutions give farmers loans at a reasonable rate of interest, they will be able to meet all their financial requirements for the purchase of seeds, equipment, tractors and other tools. They will be able to modernise their production.