Agriculture, Rural Development and Economic Survey of India, 2012

[kumar Ratan]

Hi All,

Economic survey of India is presented by Finance ministry every year, before Budget. The Economic Survey of India has a full separate chapter on Agriculture and its contribution in Indian Economy. Based on this chapter an article has been published in The Economic Times. 

Economic Survey 2012: Minimum farm growth needed for inclusive growth and development of rural areas

 

The Economic Survey has warned that more than half the population is dependent on a sector whose share in the economy is shrinking, leading to a bigger urban-rural divide and threatening national food security. 

"Achieving minimum agricultural growth is a prerequisite for inclusive growth, reduction of poverty levels, development of the rural economy and enhancing of farm incomes," the Survey has said. 

But it offers no path-breaking solutions on how to meet the target of 4% annual agricultural growth, raising concern that the government might be running out of ideas on how to bootstrap the sector which employs close to 60% of India's workforce. 

In 2011-12, agriculture and allied sectors grew 2.5% and their share in the GDP fell from 14.7% in 2009-10 to 13.9% in 2011-12. Agriculture's share in the economy's overall gross capital formation also declined from 8.3% in 2008-9 to 7.2% in 2010-11. 

The Survey believes the big challenge before the government is how to address "welfare of agricultural producers and consumers simultaneously". 

On one hand, it is necessary to ensure that "right quantities of food items" are there in the common man's food basket for nutritional security. 

On the other hand, the government has to ensure farmers are adequately compensated for the "risk" in rain-fed agriculture without straining food and fertiliser subsidy to breaking point. The Survey says rising population is fuelling demand for foodgrain, sugar and edible oil. 

The urban middle class is consuming more protein such as milk, pulses, meat, and eggs, along with fruits, vegetables and processed food. Rural poor living on Rs 100 per day from MNREGA and daily wage scheme still can't afford these expensive items, the Survey said. 

Farmers are unable to meet demand because they remain hampered by low capital investment, obsolete technology, and shortage of basic inputs such as water, fertilisers, seed, and energy. But there is no attempt to offer out-of-box solutions. 

Instead, the Survey argues that the current "comprehensive and coordinated efforts" to improve crop productivity, develop rural infrastructure, improve irrigation, strengthen marketing infrastructure, and supporting investment in R&D will "in time" rejuvenate agriculture and bring about inclusive growth. Meanwhile, the Survey recommends "strategic" food imports to tide over shortages. 

(Please reflect on this article and share your views)

--
Kumar Ratan

(Project Manager, Harit Prayas)

JCSS, 64, Cantt., Bishop's House, Jhansi- 284001, Uttar Pradesh, India.

email:kumarra...@gmail.com

web page: www.haritprayas.blogspot.com

Mob: +91 9935395253 

--
Kumar Ratan

(Project Manager, Harit Prayas)

JCSS, 64, Cantt., Bishop's House, Jhansi- 284001, Uttar Pradesh, India.

email:kumarra...@gmail.com

web page: www.haritprayas.blogspot.com

Mob: +91 9935395253 

[Preeti Sharma]

Yea, its matter of great concern for all. In post industrial society the service sector's contribution is on consistent rise. On contrary the contribution of primary sector is decreasing alarmingly. I think the Government of India should follow the keynesian economic model in agriculture sector.

regards,

Preeti Sharma
 

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[SANJHA SAMVAD]

Dear Preeti

 

Please be more specific as to what this "KEYNESIAN ECONOMIC MODEL" and how it is related to the Indian Agriculture sector so that not only the followers but also the viewers of our blog may understand this model. Kindly also bring out reference to the concern you showed over the above post.

 

Regards

Priyanshi Jain

[Preeti Sharma]

Dear Priyanshi,

The Keynesian economic model was the outcome of the Great Economic Depression in 1930s. Later on in the year of 2008, Global meltdown after sub prime crisis in U.S.A, the keynesian economic theory re emerged and the economists, across the globe, advocated for this model. the details of this you can read on the following link;

http://en.wikipedia.org/wiki/Keynesian_economics 

As far as its implication for Primary sector of Indian economy is concerned it is very simple to understand. Basically the crux of this theory is that "the invisible hands of the market" may create problem for the economy. This is why the Government should come forward and make huge investment in the concerned sector. The investment by the public sector will create the demand and then the supply will come automatically with help of mixed economy players. Thus the demand and supply will bring life to slowing down economy.

When i say that the Keynesian economic model should be adopted by GoI, it implies that the Government should invest or increase public investment in agricultural sector. But on contrary the GoI is trying to withdraw the subsidy and pulling herself back from the primary sector. It will further make the things worst.

regards,

Preeti Sharma.  

[amod aryan]

HI,
The surveys are all bullshit of indian govt. they spend our money doing these illogical surveys.these all masterminds are here to plunder and steal. we and no one can do anything discussing over it.
thanks

 

Amod Singh

---

From: Preeti Sharma <preeti.s...@gmail.com>
To: sanjha-samvad-a-net...@googlegroups.com
Sent: Tuesday, 20 March 2012 1:57 PM
Subject: Re: Agriculture, Rural Development and Economic Survey of India, 2012

[Ashok Kumar Sinha]

Dear Friends,

Greetings!

we are in public domain so our communication should be proper rather than like below. 

thanks

Ashok Kumar Sinha

Development Consultant

09968395292

[kumar Ratan]

Dear Amod,

I do not agree with with your view on 'Economic Survey of India'.

I have been reading Economic survey of India since 2002 and I never felt that it is illogical document. Rather, to me, Economic survey of India is the most authentic document on  performance of Indian economy in a financial year, the challenges and the policy response by the Government.

Regards,

Kumar Ratan. 

[Mungreiphy Shimray]

Hi Ratan,

It is always amazing to see you all work very hard and with commitment.

Keep up the good work


Regards

On Sat, Mar 17, 2012 at 10:41 AM, kumar Ratan <kumarra...@gmail.com> wrote: