THE MULTIFACETED IMPACT OF MINIMUM SUPPORT PRICE (MSP) ON INDIAN AGRICULTURE: A COMPREHENSIVE ANALYSIS

Abstract

The agricultural sector serves as the foundational pillar of the Indian economy, providing livelihoods to over 50% of the nation's populace and sustaining millions of lives.1 While its contribution to the national Gross Domestic Product (GDP) has seen a gradual decline, currently standing at approximately 18–20% compared to over 30% in the pre-liberalization era, its significance in employment generation remains profound. Agriculture employs nearly 45-50% of the Indian workforce, predominantly in rural regions. This disproportionate contribution to employment relative to GDP indicates the presence of low labour productivity within the sector.