Asian Journal of Research in Business Economics and Management
Year : 2013, Volume : 3, Issue : 8
First page : ( 65) Last page : ( 78)
Online ISSN : 2249-7307.

Economic impact of liberalization on Indian agricultur

Dr. Gangshetty R. V., Assistant Professor, Dr. Madari D. M., Assistant Professor, Somannavar Nayana M., Research Scholar

Department of Economics, Karnataka State Women's University, Bijapur, India

Online published on 9 August, 2013.

Abstract

Agriculture sector plays a strategic role in the process of economic development of a country. It has made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. It is seen that increased agricultural output and productivity tends to contribute substantially to an overall economic development of a predominantly agricultural and over populated country. A very significant issue in the development policy has been whether the economic growth should be promoted by adopting planning and controls or through free market system in which private sector and foreign investors are permitted to play an important role. Now regarding the conditions of Indian agriculture, it can be observed that the county has achieved self sufficiency in foodgrains production. But considering its huge potential there is still vast scope to raise the productivity in Indian agriculture. However, to evolve a long-term solution to promote price stability, to bring about equilibrium in balance of payments and above all, to ensure higher rate of economic growth, the newly elected Congress Government with Dr. Manmohan Singh as Finance Minister adopted in 1991 what is popularly called New Economic Policy (NEP) on the advice of IMF and World Bank. A very significant issue in the development policy has been whether the economic growth should be promoted by adopting planning and controls or trough free market system in which private sector and foreign investors are permitted to play an important role. Now regarding the conditions of Indian agriculture, it can be observed that the county has achieved self sufficiency in foodgrains production. But considering its huge potential there is still vast scope to raise the productivity in Indian agriculture. This paper highlighted the significance or rationale of liberalization, its advantages and positive and negative impact especially on Indian agriculture.

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