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After initiation of economic reforms in 1991, the Indian economy moved from low
growth to high growth path. According to Subramaniam A (2008) the country is witnessing a
third trajectory of growth; from 3% it went to 6% and in the last four years it became around
9%. Presently, India emerged as one of the fastest growing economies across the world
(World Economic Outlook, 2008). During this period, India has experienced improvements in
almost all sectors of the economy except agriculture, although agriculture contributes 18% in
total Gross Domestic Product (GDP) and provides the main livelihood for more than 60% of
the nation's population. This figure shows that agriculture continues to be the dominant
sector in the Indian economy.
Since independence, India has made much progress in agriculture. Indian
agriculture, which grew at the rate of about 1% per annum during the 50 years before independence,
has grown at the rate of about 2.6% per annum in the post-independence era. Expansion of
area was the main source of growth during the 1950s and 1960s. After that the contribution
of increased land area under agricultural production has declined over the time and increase
in productivity became the main source of growth in agricultural production. Another
important facet of progress in agriculture is its success in becoming independent in foodgrains.
Indian agriculture has progressed not only in output and yield terms but the structural changes
have also contributed. All these developments in Indian agriculture are due to a series of
steps initiated by the Indian Government. Land reforms, inauguration of Agricultural
Price Commission (APC) with the objective to ensure remunerative prices to producers,
new agricultural strategy, investment in research and extension services, provision of
credit facilities, and improving rural infrastructure are some of these steps. |
