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Comparative growth of private and public investment in Indian agriculture
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Is Indian agriculture stagnating?
Rising food inflation has been a big concern of policy makers and many of them are of the view that food inflation in India is driven by supply side constraints. Even though India is an agrarian economy, investment in agriculture has continued to decline from 19% of total investment (1950) to 8.5% (2000). The public sector investment has declined from 42% (1980s) to 21% ( 2000s).
Traditionally, private sector investment in agriculture has been more than public sector investment but productivity and income levels has been low. This is a mjor concern for a growing economy like India. The sector needs major reform and policy changes to improve productivity, yields and efficiency.
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