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1 October 2010
Author: Rajiv Kumar, ICRIER
Agriculture has emerged as the key constraint to achieving rapid growth and improving equity in India. It is also clear that while land, the principal productive asset, is almost entirely under private ownership, the sector is characterised by extensive government intervention and a visible lack of large-scale corporate investment.
As a result of insufficient investment, the agricultural sector – except perhaps in the Punjab, Haryana and the Terai region of Uttar Pradesh – remains backward. This is evident across the entire range of cultivation and irrigation practices, the lack of new technology, non-existent back-end infrastructure and logistics, abysmal research, and very low levels of processing of agro-output. No wonder, then, that with 60 per cent of the population working in agriculture, it contributes a mere 17 per cent of the GDP. ....

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