A study on the role of FDI in promoting Indian Agriculture and Government initiatives
Author(s):
Dr. Raghu. C
Keywords:
Capital scarcity, Supplementing domestic capital, Agriculture, FDI, Poverty.
Abstract
Agriculture has a greater role to play in the economic development of a country. Apart from contributing 17% to national income, it provides largest employment opportunity for larger segment of the population. In India more than 49% of the population, still depends on agriculture. Hence Indian Agriculture is regarded as the “back bone of Indian economy”. During 2015-16, around 275 Million tonnes of food grains was grown in the country, apart from this agriculture supplies fodder to animals, cattle & livestock. Not only in India, around 2/3rd of the world population is dependent on agriculture for their livelihood. Agriculture also supplies raw materials to industries like raw cotton to cotton industry, sugar cane for sugar industry, oil seeds for edible oil industry, jute for jute industry, Wheat for Biscuits industry etc. These industries are known as ‘Agro based industries’. The prosperity of these agro based industries is directly dependent upon the availability of inputs from the agricultural sector. World Development Report 2000, published by World Bank, states that 1.1 billion people are surviving on less than US $ 1 a day and around 2.1 billion people are surviving on less than US $ 2 a day, of whom between two thirds to three quarters live in rural areas of developing countries. Thus if the war on poverty is to be won, developing countries need to place more importance on agricultural sector (IFAD, 2002). Adequate capital supply is inevitable for economic growth and needed to reduce poverty and raising standard of living. Achieving all these goals requires huge capital to be invested. When domestic capital available is not sufficient, it must be compensated through other means and FDI is an important source to supplement the capital scarcity faced in the country. This paper analyses the role of foreign direct investment on Agricultural sector and government initiatives in order to promote such FDI in the country.
Article Details
Unique Paper ID: 152857

Publication Volume & Issue: Volume 5, Issue 7

Page(s): 411 - 415
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