RETHINKING CROP INSURANCE IN INDIA: EVALUATING THE DYNAMICS OF AGRICULTURAL INSURANCE IN INDIA THROUGH THE LENS OF PRADHAN MANTRI FASAL BIMA YOJANA

Abstract

India's economy is heavily dependent on agriculture, which accounts for about 18% of GDP (gross value added), according to the Economic Survey 2021–2022. As a result, crops become essential resources that affect the country's economy as well as the lives of farmers. Farmers can choose to insure their crops through the Pradhan Mantri Fasal Bima Yojana, a program intended to offer coverage against various hazards linked with farming, to protect this important asset. This study explores the performance and developmental elements of the current agriculture insurance programs in India by doing a thorough assessment and analysis of the literature using the content analysis approach. A lopsided benefit pattern, insufficient government backing, an unworkable subsidy system, and protracted delays in claim settlement are all present in the Pradhan Mantri Fasal Bima Yojana (PMFBY). It is advised that to solve these problems, a demand-driven strategy that is technologically integrated be used. Distinguishing crop insurance from political affiliations is crucial. This change is necessary because farmers will benefit from the crop insurance program considerably more than insurers, administrators, and politicians will because of the PMFBY's speed, diversity, and verifiability.

Keywords: PMFBY, Agriculture Insurance, Farmers, Economic Development