Investment and Subsidies in Indian Agriculture: One Variation on a Theme by Dr Raja J Chelliah

Raghbendra Jha

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

One of the principal elements of the economic reforms program initiated in 1991 was to reduce the fiscal deficit of the central government which, at that time, faced a solvency crisis. This reduction was at least partially achieved by reducing transfers to state governments. As a result, state government budgets faced crises and agriculture, being largely a state subject, was denied adequate investment. This paper reviews the performance of Indian agriculture, particularly in the post-reform period. It attributes this lacklustre performance to the stagnation of agricultural investment whereas there has been a contemporaneous rise in agricultural subsidies. Thus while current operations are being subsidised to some extent resource for augmentation of productive capacity in agriculture are dwindling.
Original languageEnglish
Title of host publicationDevelopment and Public Finance: Essays in Honour of Raja J. Chelliah
EditorsD.K. Srivastava and U. Sankar
Place of PublicationNew Delhi
PublisherSage Publications Inc
Pages296-303
Volume1
Edition1st
ISBN (Print)9788132107422
Publication statusPublished - 2012

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