1) Role of agriculture in india…

Agriculture in India
Agriculture in India is one of the most important sectors of its economy. It is the means of livelihood of almost two thirds of the work force in
the country and according to the economic data for the financial year 2006-07, agriculture accounts for 18% of India's GDP. About 43 % of
India's geographical area is used for agricultural activity. Though the share of Indian agriculture in the GDP has steadily declined, it is still
the single largest contributor to the GDP and plays a vital role in the overall socio-economic development of India. 

One of the biggest success stories of independent India is the rapid strides made in the field of agriculture. From a nation dependent on
food imports to feed its population, India today is not only self-sufficient in grain production but also has substantial reserves. Dependence
of India on agricultural imports and the crises of food shortage encountered in 1960s convinced planners that India's growing population,
as well as concerns about national independence, security, and political stability, required self-sufficiency in food production. This
perception led to a program of agricultural improvement called the Green Revolution. It involved bringing additional area under cultivation,
extension of irrigation facilities, the use of improved high-yielding variety of seeds, better techniques evolved through agricultural research,
water management, and plant protection through judicious use of fertilisers, pesticides and cropping practices. All these measures had a
salutary effect and the production of wheat and rice witnessed quantum leap. 

To carry improved technologies to farmers and to replicate the

success achieved in the production of wheat and rice a National Pulse
Development Programme, covering 13 states, was launched in 1986.
Similarly, a Technology Mission on Oilseeds was launched in 1986 to increase production of oilseeds in the country and attain self-
sufficiency. Pulses were brought under the Technology Mission in 1990. After the setting up of the Technology Mission, there has been
consistent improvement in the production of oilseeds. A new seeds policy has been adopted to provide access to high-quality seeds and
plant material for vegetables, fruit, flowers, oilseeds and pulses, without in any way compromising quarantine conditions. To give fillip to the
agriculture and make it more profitable, Ministry of Food Processing Industries was set up in July 1988. Government has also taken
initiatives to encourage private sector investment in the food processing industry. 

However, there are still a host of issues that need to be addressed regarding Indian agriculture. Indian agriculture is heavily dependent on
monsoons. The monsoons play a critical role in determining whether the harvest will be rich, average, or poor. The structural weaknesses
of the agriculture sector are reflected in the low level of public investment, exhaustion of the yield potential of new high yielding varieties of
wheat and rice, unbalanced fertilizer use, low seeds replacement rate, an inadequate incentive system and post harvest value addition. 

There is an urgent need for second green revolution in Indian agriculture and taking it to a higher trajectory of 4 per cent annual growth.
Following steps need to be taken to achieve this objective:

 Doubling the rate of growth of irrigated area;

 Reclaiming degraded land and focusing on soil quality;
 Improving water management, rain water harvesting and watershed development;
 Bridging the knowledge gap through effective extension services;
 Diversifying into high value outputs, fruits, vegetables, flowers, herbs and spices, medicinal plants, bamboo, bio-diesel, but with
adequate measures to ensure food security;
 Providing easy access to credit at affordable rates.\

Agriculture
Last Updated: June 2010

 
Agriculture is one of the strongholds of the Indian economy and accounts for 14.6 per cent of the country's gross domestic product (GDP) in 2009-10,
and 10.23 per cent (provisional) of the total exports. Furthermore, the sector provided employment to 58.2 per cent of the work force.

The Indian Agricultural Scenario

The total geographical area of India is 328.7 million hectares of which 140.3 million hectares is net sown area, while 193.7 million hectares is the gross
cropped area, according to the Annual Report 2009-10 of the Ministry of Agriculture.
Production

According to Annual Report 2009-10 of the Ministry of Agriculture, production of foodgrains during 2009-10 is estimated at 216.85 million tonnes (MT)
as per 2nd Advance Estimates.

India has become the world's largest producer across a range of commodities due to its favourable agro-climatic conditions and rich natural resource
base.

India is the largest producer of coconuts, mangoes, bananas, milk and dairy products, cashew nuts, pulses, ginger, turmeric and black pepper. It is also
the second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

The US Department of Agriculture (USDA) has pegged India's rice output up by 13 per cent at 99 million tonnes in 2010-11.

About 85 per cent of the country's total rice output is grown during the kharif season (between June and September), while the rest of the 15 per cent is
cultivated during the rabi season (between November and February).

Further, according to the USDA, India's cotton production may increase by over 6 per cent to a record 25 million bales in 2010-11, provided India
receives normal monsoon this year.

Cotton output is pegged at 23.5 million bales (one bale equals 170 kg) in 2009-10 marketing season (August-July).

Exports

According to the government's agri-trade promotion body, Agricultural and Processed Food Products Export Development Authority (APEDA), India's
exports of agricultural and floricultural products, fruits and vegetables, animal products and processed food products was worth US$ 8.1 billion in 2008-
09, an increase of 13.88 per cent from US$ 7.11 billion in 2007-08.

Exports during April-December 2009-10 were worth US$ 54.16 million.

India's agri-export turnover is expected to double in the next five years, according to APEDA. Agri-export turnover is set to rise to nearly US$ 18 billion
by 2014.

At present, around 70 per cent of the country's agricultural and processed food exports are to developing countries in the Middle East, Asia, Africa and
South America.

Indian seed companies are eyeing the export markets in SAARC (South Asian Association for Regional Cooperation) and African countries with a host
of hybrid seeds and best farm practices. While some of the companies like J K Seeds, Namdhari Seeds, Nuziveedu Seeds, Nath Seeds, Rasi and Vibha
Seeds have already ventured into the export markets in the region.

Investments

The public and private sector investment in agriculture have been steadily increasing since 2004-05. While public sector investments in agriculture have
increased from US$ 3.61 billion in 2004-05 to US$ 5.5 billion in 2008-09, private sector investment has increased from US$ 14 billion in 2004-05 to
US$ 25.5 billion in 2008-09, according to the Annual Report 2009-10 of the Ministry of Agriculture.

 Indian Farmers Fertiliser Cooperative (IFFCO), the fertiliser producing and distribution cooperative, is planning to set up an
institute at its plant in Paradeep in Orissa. In the proposed institute, farmers would be trained on best crop practices of cereals,
pulses, oilseeds, vegetable and horticultural crops etc
 2) Impact of liberalization on agricultural sector

Impact of economic reforms on Indian agricultural sector: Application of geomatics technology

to reduce marginalisation and vulnerability of small farmers in India

Impact of Economic Reforms Process on Indian Agricultural Sector 

Agricultural sector is the mainstay of the rural Indian economy around which socio-economic privileges
and deprivations revolve, and any change in its structure is likely to have a corresponding impact on the
existing pattern of social equality. No strategy of economic reform can succeed without sustained and
broad based agricultural development, which is critical for

 raising living standards,

 alleviating poverty,
 assuring food security,
 generating buoyant market for expansion of industry and services, and
 making substantial contribution to the national economic growth.

Studies also show that the economic liberalization and reforms process have impacted on agricultural
and rural sectors very much. 

According to [Bhalla97], of the three sectors of economy in India, the tertiary sector has diversified the
fastest, the secondary sector the second fastest, while the primary sector, taken as whole, has scarcely
diversified at all. Since agriculture continues to be a tradable sector, this economic liberalization and
reform policy has far reaching effects on (I) agricultural exports and imports, (ii) investment in new
technologies and on rural infrastructure (iii) patterns of agricultural growth, (iv) agriculture income and
employment, (v) agricultural prices and (vi) food security [Bhalla93]. 

Reduction in Commercial Bank credit to agriculture, in lieu of this reforms process and
recommendations of Khusrao Committee and Narasingham Committee, might lead to a fall in farm
investment and impaired agricultural growth [Panda96]. Infrastructure development requires public
expenditure which is getting affected due to the new policies of fiscal compression. Liberalization of
agriculture and open market operations will enhance competition in "resource use" and "marketing of
agricultural production", which will force the small and marginal farmers (who constitute 76.3% of total
farmers) to resort to "distress sale" and seek for off-farm employment for supplementing income. 

Marginalisation of Small farmers 

A central issue in Agricultural Development is the necessity to increase productivity, employment, and
income of poor segments of the agricultural population. Among the rural poor, the small farmers
constitute a sizeable portion in the developing countries. Studies by FAO have shown that small farms
constitute between 60-70% of total farms in developing countries and contribute around 30-35% to total
agricultural output [Randhawa & Sundaram90]. 

Liberalisation era (1990-91) began in India when over 40% of rural households were landless or near
landless, and over 96% of the owned holdings and 68.53% (over 2/3rd ) of owned land belonged to the
size groups (marginal, small and semi-medium). The decade of 1981-82 to 1991-92 seems to have
witnessed a marked intensification of the marginalisation process - the percentage of small owners
increased from 14.70% to 21.75%. 
Small farmers emerged as the size group with the largest share of 33.97% in the total land, which is just
doubled during this decade. As regards the Large Farmers, they were 1 % of the total owners in 1990-
91 but owned nearly 13.83% of the total land. An interesting, but speculative, inference is that the
changing position of the large owners represents the other side of the marginalisation process, i.e., the
presence, and possibly growing strength, of a small but dominant and influential group in agriculture.
Analytical reports reveal that marginalisation process could gather further momentum in the years
ahead to become an explosive source of economic and political turbulence, due to the features of
prevailing policy-cum-market environment in the country. 

Trend towards a greater casualisation (erratic and low-paid work) of the workforce that was witnessed in
the 1980s appears to have continued in the1990s. Low productivity and inability to absorb the growing
labour force make the agricultural sector in India witness to a pervasive process of marginalisation of
rural people. This process is likely to get intensified in the coming years, raising formidable problems in
achieving sustained development of rural areas and rural people[VMRao&Hanumappa99]. 

Both Information Technology, Genetic Engineering and Bio-Technology, which are the "drivers" of
globalisation with their complementarities of liberalisation, privatisation and tighter Intellectual Properties
Rights, are bound to create new risks of marginalisation and vulnerability. Information Technology is
able to produce a penetrating and clinical mapping of the land, encompassing the physical, chemical
and biological features, and groundwater resources, and forecast of climatic conditions in a focussed
manner, that even small geographical segments - the small farms - can be benefited through the
guidance provided by the ways in which natural and human resources can be optimally combined with
appropriate technologies, inputs and options to enhance and diversify agricultural production [KVS2K].
Information Technology will facilitate dissemination of information on development, education,
extension, husbandry, marketing, production, and research, to agricultural farmers. 

Indian Agricultural Sector 

The Indian Agricultural sector provides employment to about 65% of the labour force, accounts for 27%
of GDP, contributes 21% of total exports, and raw materials to several industries. The Livestock sector
contributes an estimated 8.4 % to the country GDP and 35.85 % of the agricultural output. India is the
seventh largest producer of fish in the world and ranks second in the production of inland fish. Fish
production has increased from 0.75 million tons in 1950-51 to 5.14 million tons in 1996-97, a cumulative
growth rate of 4.2% per annum, which has been the fastest of any item in the food sector, except
potatoes, eggs and poultry meat. The future growth in agriculture must come from [GBSingh2K] viz.,

 new technologies which are not only "cost effective" but also "in conformity" with natural climatic
regime of the country;
 technologies relevant to rain-fed areas specifically;
 continued genetic improvements for better seeds and yields;
 data improvements for better research, better results, and sustainable planning;
 bridging the gap between knowledge and practice; and
 judicious land use resource surveys, efficient management practices and sustainable use of
natural resources.
 3) directions of export in india

India’s exports by regions and principal countries( Rs in crore)

Regional % %
Apr.-
and 1998- change Apr.- change
1997- Oct.1999
principal 99(Provision over Oct.199 over
98 (Provisiona
countries al) previou 8 previou
l)
s year s year

Europe 41524 45087 8.58 24780 27892 12.55

I) ECM 33986 38114 12.14 20722 2316 11.78

Austria 317 330 4.10 172 215 -87.79

Belgium 4518 5458 20.80 3172 3266 2.96

Denmark 591 797 34.85 382 482 26.17

Finland 216 311 43.98 199 121 -39.19

France 2823 3544 25.54 1836 2109 14.86

Germany 7149 7929 10.91 4189 4425 5.63

Greece 347 412 18.73 233 223 -429

Ireland 249 285 14.45 164 192 1707

Italy 4145 4480 8.08 2346 2498 6.47

Luxembour 12 16 16.66 9 13 44.44

g

Netherld 2987 3285 9.97 1777 2231 25.54

Portugal 414 453 9.42 253 290 14.62

Spain 1644 2152 30.90 1105 1327 20.09

Sweden 618 634 2.58 337 355 5.34

UK 7956 8028 0.90 4548 5418 19.12

EFTA 1678 1616 -3.69 933 969 3.85

Norway 288 239 -17.01 125 129 3.20

Switzerlnd 1366 1360 -0.43 797 829 4.01

East 4772 4501 -5.67 2586 3202 23.82

European
countries

Bulgaria 34 39 14.70 26 19 -26.92

Croatia 22 23 4.54 15 9 -40

Czech. 94 144 53.19 70 81 15.71

Hungary 132 151 14.39 89 85 -4.49

Poland 326 398 22.08 219 232 5.93

Rumania 57 73 28.07 51 36 -29.41

Russia 3542 3038 -14.22 1712 2330 36.09

Slovakia 22 28 27.27 6 39 516.66

Slovenia 39 58 48.71 43 17 -60.46

Ukraine 226 145 -35.84 99 119 20.20

Rest 1088 856 -21.32 539 556 3.15

ofEurope

Cyprus 120 106 -11.66 57 84 47.34

Malta 30 26 -13.33 15 18 20

Turkey 907 716 -21.05 463 451 -2.59

Asia and 50613 51246 1.25 27941 32488 16.27

Ocenia

ESCAP 36419 34520 -5.21 18406 22067 19.89

Afghanista 79 54 -31.64 32 46 43.75

n

Australia 1629 1640 0.67 995 1067 7.23

Banglades 2923 4168 42.59 2253 1417 -37.10

h

China 2668 1724 -35.38 893 1161 30.01

Fiji 2 39 18.50 23 47 104.34

Hong Kong 7180 7924 10.36 4254 5669 33.26

Indonesia 1625 786 -51.63 302 639 111.58

Iran 638 667 4.54 325 414 27.38

Japan 7056 6945 1.57 3866 4083 5.61

Korea Rep 1738 1154 -33.60 551 1031 87.11

Malaysia 1821 1337 -26.57 715 1070 49.65

Maynamar 183 218 19.12 63 87 38.09

Nepal 632 628 -0.63 279 328 17.56

N.Zealand 267 238 -10.86 151 178 17.56

Pakistan 532 466 -47.46 209 203 -2.89

Philippines 887 499 -43.74 253 344 35.96

Singapore 2898 2188 -24.49 1138 1686 48.15

Sri Lanka 1818 1851 -1.81 1009 1181 17.04

Thailand 1278 1345 -5.24 724 1005 38.81

Vietnam 471 526 11.67 295 338 14.57

Rest of 14194 16726 17.83 9535 10421 9.29

Asia &
Oceania

Baharin 240 211 -20.71 148 117 20.94

Taiwan 1501 1299 -13.45 784 665 -15.17

Iraq 42 149 254.76 94 97 3.19

Israel 1313 1492 13.63 905 1190 31.49

Jordan 257 289 12.45 164 147 -10.36

South 140 211 50.35 53 288 443.39

Korea

Kuwait 691 688 -0.43 439 394 -10.25

Lebanon 99 113 14.14 57 69 21.05

Oman 408 490 20.09 295 287 -2.77

Qatar 167 167 0 103 83 -19.41

Saudi 2565 3253 26.82 1815 1724 -5.01

Arabia

Syria 211 255 20.85 119 169 42.01

UAE 6290 7795 23.92 4412 4952 12.23

Yemen 214 262 22.42 136 207 52.20

AFRICA 7135 8836 23.84 4980 4853 2.55

Algeria 63 107 69.84 52 40 -23.07

Benin 77 112 45.45 53 68 28.30

Canary 76 55 -27.63 27 20 -25.92

Congo 53 97 83.01 59 55 6.77

Egypt 942 1153 23.46 570 572 0.35

Ethiopia 251 266 5.97 193 150 -22.27

Ghana 182 262 43.95 140 155 10.71

Ivory 49 277 465.30 195 83 -57.43

Coast

Kenya 461 613 32.97 351 301 -14.24

Liberia 34 14 -58.12 6 18 -19.40

Libya 144 102 -29.16 67 54 -19.40

Malawi 40 42 5 29 52 79.31

Mauritania 13 23 76.92 13 32 146.15

Mauritius 671 662 -1.34 385 467 21.29

Morocco 105 123 17.14 55 71 29.09

Mozambiq 801 1038 29.58 46 87 89.13

ue

Nigeria 111 96 -13.51 525 703 33.90

Senegal 108 144 33.33 101 50 -50.49

Sierra 5 9 80.00 6 5 -16.66

Leonne

Somalia 78 122 56.41 138 33 -76.08

Sudan 166 234 40.96 125 182 45.6

Swaziland 4 8 100.00 2 7 250

Tanzania 256 361 41.01 197 209 6.09

Tunisia 55 93 69.09 57 67 17.54

Uganda 164 191 16.46 115 104 -9.56

Zaire 83 30 -63.85 25 12 -52

Zambia 99 76 -23.23 44 37 -15.90

America 29518 36037 42.41 20494 24578 19.92

North 26893 32848 22.14 18903 22788 20.55

Canada 1610 2006 24.59 1116 1432 28.31

USA 25283 30842 21.98 17787 21356 20.06

South 1779 1736 -2.41 1064 1008 5.26

Argentina 345 311 -9.85 200 171 -14.5

 Bolivia 3 4 33.33 3 2 -33

Brazil 533 585 9.75 345 334 -3.18

Chile 448 334 -25.44 198 203 2.52

Colombia 119 101 -15.12 71 67 -5.63

Paraguay 24 26 8.33 15 21 40

Peru 80 88 10.00 52 82 57.69

Uruguay 126 156 23.80 103 64 -37.86

Venezuela 84 112 33.33 65 59 -9.23

Other 846 1453 71.74 527 782 48.38

American
&
Carribean
countries

Bahamas 4 7 75.00 2 24 1100.00

Barbados 6 34 466.66 8 33 312.50

Cuba 2 15 650.00 8 6 -25.00

Guatemala 18 18 0.00 12 20 66.66

Guyana 4 9 125.00 6 7 16.60

Mexico 412 1039 152.18 312 356 14.10

Panama 149 99 -33.55 62 94 51.61

Netherland 22 27 22.72 15 25 66.66

s

Nicaragua 2 5 150.00 2 6 200.00

Trinidad 42 33 -21.42 22 20 -9.09

and
Tobago

Total 13010 141604 8.84 78545 89940 14.50

exports 1
(includin
g re-
exports)

India has adopted the globalization policy since 1991, and an attempt is made to examine exports behavior during post reform period and
to test the validity of Constant Market Share Model (CMS). It is found that there was an improvement in increasing export. CMS analysis
has indicated that share in exports increased due to increase in volume of world trade (56.7 percent) and competitiveness in international
market (53.5 percent). While India has lost (10.2 percent) market share due to dismantling of the then USSR, it is gained in Asia and
European regions. Thus CMS analysis suggested that, openness has led to growth of Indian trade.
I. INTRODUCTION

One of the paradigms in international trade, which is widely accepted is that potential benefits of open trade outweigh the costs. The
unsustainable and often growth--decelerating effects of inward-looking development strategies glorified in sixties, have given way for
recognizing the positive link between openness and export, and export and growth. The Classical and neo-classical economists' argument
that international trade could be ah engine of economic growth has come to the fore. As pointed put by Krueger (1998) that trade policy is
integrally tied up with overall development strategy. Third World countries started realizing that unbounded protectionist approach to
international trade would limit their ability to exploit the resource endowments of their countries, and dependence mainly/only on
domestic market would constrain their growth /development prospects. Therefore promotion of foreign trade particularly of exports has
now become leading effort of development of many developing countries. Of late, many developing countries have opted for import
liberalization and export promotion.

From the middle of eighties, especially, 1991 onwards India has changed its track from planning--public sector-regulation
fundamentalism to marketisation-privatization -liberalization regime in its development pursuits. This has turned out to be quite a shift
from inward looking policy of import substitution towards a more outward- oriented policy of liberalization in order to place the economy
on the path of export-led growth. This U-turn could be attributed to many factors such as liquidity crisis due to imports exceeding exports,
low global credit rating of India, disenhancement with forty years of in-ward looking development strategy, powerful resurgence of
"conservative" economic thinking arguing in favor of liberalization high rates of inflation, huge budget deficits and "prescriptions" of
IMF and World Bank for availment of credit facilities. The reforms initiated in the area of foreign trade sector are rated to be the most
successful of all reforms initiated since 1991.

It is in this perspective of liberalization; a study of the impact of India's external sector reforms has become pertinent. Citation of the
results of the few studies on this topic would be in order so as to place the present study in the proper perspective. The study by Kishore
Sharma (2000) has identified export prices, real appreciation of Indian rupee, higher domestic / international demand and FDI as the
major determinants of export performance. Srinivasan (2001) while recording an improvement in export performance of India in 1990s,
recognizes that India still lags behind compared to other South East Asian Countries. Arvind Virmani (2003) in his study of Indian
economic performance during the pre-reforms and post-reforms periods has also focused on India's external sector performance especially
export performance during the post-reforms period. The present study is an attempt to answer three important questions. First, what have
been the magnitudes of the changes that have taken place with respect to share of India's exports in GDP and her exports in world
exports? Second, whether considerable shifts in composition and direction of trade have occurred during the reforms- regime. Third, what
components would account for export growth in terms of competitiveness, expansion of world trade, composition, and market
distribution?