Readiness for agricultural transformation

Agricultural transformation lies at the core of poverty reduction, food security, and improved nutrition. With few exceptions, countries that have moved toward middle-income status have been initially driven along that path of economic growth by the transformation of their agriculture sector. Yet many countries today remain stalled in their journey. Globally, about one in nine people are hungry and one-third of the population suffers from malnutrition.¹The potential impact from unlocking agricultural transformation is large. In India, for example, McKinsey research suggests that addressing key agriculture sector constraints could create an increase in agricultural output of $175 billion and an 85 percent average increase in farmers’ incomes by 2025.²