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Impact Of Reforms On Agriculture

Updated: April 2, 2011 12:59 pm

There has been significant changes and transformation in Indian agriculture during the last 50 years. The decades of 1960s, 1970s and 1980s witnessed high growth in public investments in agricultural, which improved infrastructural base for growth of agriculture. But in the decades of 1990s, the declining trend in public investments for infrastructure development for agriculture was seen. The same period (since 1991) has been marked by reforms involving, among other things, change in exchange rate and liberalisation of external rate. Measures have been taken to promote integration of domestic economy with global economy. These changes in turn have affected domestic prices of several commodities. In this perspective, the book, which contains six chapters, traces economic reforms and their impact on agricultural and industrial sectors. It highlights that economic reforms were mainly intended to remove the bottlenecks, which acted as obstacles in industrial production. To pursue this goal, industrial licensing was abolished in all but 18 industries. Later, the government delicensed several others. Chapter one deals with introduction and causes of economic reforms. In this chapter, the full story of the way the reforms finally began to happen in 1991, can be seen from the crisis which engulfed the Indian economy. Second chapter deals with historical background of New Economy Policy (NEP). The book emphasises that while some of the policies are “new” as far as their implementation in India is concerned, they are conventional wisdom now for sometime as far as both the academic opinion and the sanction of actual practice around the world are concerned. Statistics bear testimony to the fact that the genesis of the economic crisis in India, which surfaced in 1991, lies in the large and persistence macro-economic imbalance that developed over the 1980s.

                The book underlines the impact of NEP on the agricultural sector in India. The reforms had an impact on the agricultural sector through the central government effort to withdraw the fertilizer subsidy and place greater emphasis on agricultural exports. It is required to develop agricultural resources information system using geomatics technology with public funding to reduce the process of marginalisation of small farmers and risk such as variation in output process, etc, in India. This will facilitate to evolve “Small Farmer Development Strategy” making full use of frontier technologies (Information Technology and Bio-Technology) and during the linkages between research, technology and production on one hand, and effectiveness of the delivery system and extension network to carry the benefits of set to the farmers on the other. The book also deals with the impact of economic reforms on development of agricultural sector in Uttar Pradesh. Agricultural sector is the prime mover of economic growth in Uttar Pradesh. The state has immense significance in the context of food security of the country. Further, the book highlights the impact of new economic policy on development of industrial sector in Uttar Pradesh. The new industrial policy is dynamic in nature. It provides a package of facilities and incentives to entrepreneurs and industrial units. The prime object of this policy is to ensure creation of maximum employment opportunities and eradication of poverty. Top priority has been accorded to infrastructural facilities. Finally the book deals with conclusion and policy recommendations. The book will be of great help to students, researchers, academicians and also to policymakers so as to accelerate development in the field of agriculture.

By Ashok Kumar

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