The Indian Economy Since 1991, 2nd Edition

Appendix 7

Agricultural Policy Reforms

Agricultural Policy Reforms, 1992–93

• The trend growth rate in agriculture, which is around 2.2 per cent per annum at present, needs to be raised to around 3 per cent to accelerate GDP growth. For this, action on several fronts including investment, land tenure, availability of credit, pricing policies and technology is needed.
• The expenditure in both the centre and the states should be restructured to contain the growth of current expenditure and increase investment. Public investment in agriculture and rural development should be stepped up.
• Institutional constraints relating to land tenure should be removed. Consolidation of holdings should be given due importance to produce a viable small farmer economy. ...