Agriculture Sector Pattern and Structure of Growth: Economic YouTube Lecture Handouts

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Overview

  • Indiaีšs production of food grains has been increasing every year, and India is among the top producers of several crops such as wheat, rice, pulses, sugarcane and cotton.
  • India is the highest producer of milk and 2nd highest producer of fruits and vegetables.
  • In 2013, India contributed 25 % to the worldีšs pulses production, 22 % to the rice production and 13 % to the wheat production.
  • It also accounted for about 25 % of the total quantity of cotton produced, besides being the second highest exporter of cotton for the past several years.
  • Contributes 15 % to GVA and 50 % of population depends on agriculture for their livelihood.
  • Basis for Industrial Development as Agriculture offers raw materials like jute, sugarcane.
  • It is also a market for Industrial goods. Nearly 50 % of the industrial demand comes from rural areas. E. g. tractors, fertilizers, seeds etc.
  • Share in International trade is considerable. Share of Agri-allied in total trade stood at 12 % with net exports. Thus, a shift from self-sufficient to market led production.
  • Share of agriculture in GDP stood at around 50 % during 1950ีšs and to employment at 70 % .
  • During 1600 - 1750ีšs Indiaีšs share in International Trade was 35 - 40 % but in 1950 it fell to 3 % .

Planning Periods

  • 1st Plan (1951 โ€“ 56) : It aimed at solving food crisis, hence, highest priority to agriculture with allocation of more than 14 % of the total plan outlay.
  • 2nd Plan (1956 โ€“ 61) : This plan saw significant reduction in agricultural outlay. It was 11.7 % of the total plan outlay. Reliance was given on Heavy industries.
  • 3rd Plan (1961 โ€“ 66) : The 3rd Plan fixed ambitious targets of production for all agricultural crops. Intensive Agricultural District Programme (IADP) , followed by High Yielding Variety Programme (HYVP) were introduced.
  • 4th Plan (1969 โ€“ 74) : This plan aimed at systematic application of science and technology to improve agricultural practices. The allocation to agriculture sector was 15 % of the total plan outlay. Bank Nationalization was done and Green revolution was introduced.
  • 5th Plan (1974 โ€“ 78) : The 5th Plan was the only period, when the actual food grain production exceeded the targeted production.
  • 6th Plan (1980 โ€“ 85) : Agriculture growth rate in this plan was 3 % as against the targeted 3.8 % . The plan is hailed as the Second Green Revolution because of the result of expansion in supplies of inputs and services to farmers, agricultural extension etc.
  • 7th Plan (1985 โ€“ 90) : Total plan outlay on agriculture was 6 % and except cotton, none of the targets fixed for various sectors was achieved. Deceleration was there.
  • 8th Plan (1992 โ€“ 97) : Agriculture growth rate in this plan was 44 % on account of weather and climate conditions being favorable. Also, new LPG policies aided the development.
  • 9th Plan (1997 โ€“ 2002) : Agriculture growth rate in this plan was 44 % . Set targets were not achieved and hence, 9th Plan was a failure on agriculture front.
  • 10th Plan (2002 โ€“ 07) : This plan adopted the National Agricultural Policy (NAP) , 2000 and therefore, envisaged better management of resources, soil and water, so as to promote sustainable and inclusive agriculture.

12th 5 Year Plan

  • Sector grew at 3 % . Problems like shrinking land base (Land fragmentation) , dwindling water resources, adverse impact of climate change, shortage of farm labour and increasing costs and uncertainties associated with volatility in international markets emerged.
  • Distribution of more institutional credit equitably, greater focus on small and marginal farmers, improving productivity in rain-fed areas, retaining youth in agriculture and funding for research was focused.
  • New Policies like Crop insurance, soil testing etc. were focused on.

Practice Question

Q 1. Indian planners after Independence were attracted to the following economic model

1. Socialist

2. Mixed Economy

3. Capitalist

4. None

Answer: 1

Q 2. During which 5year plan, Green revolution was started in INDIA

A) 3rd 5 year plan

B) 4th 5 year plan

C) 6th 5 year plan

D) 7th 5 year plan

Answer: B

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