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Indian Agri Growth 2004

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Submitted By mohitrakyan
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wthQ1. The performance of Indian agriculture has improved for better in the years since 2004-05. Discuss the factors behind these outcomes.

Agriculture provides employment to over 50% of the workforce and the forward and backward linkages associated with its growth have a considerable effect on the incomes of the non agricultural sector. Contributing not only to the overall growth of the economy, but it's role in reducing poverty by providing employment and food security, makes it one of the most inclusive growth sectors of the Indian economy.

The deceleration in growth during the period 1997-2004, occurred in almost all the states and sub-sectors, including horticulture, livestock and fisheries where growth was expected to be high. While there was an emphasis on price factors following the economic reforms of the 1990s due to the implementation of the WTO agreement, it was at the cost of non price factors like research and extension, irrigation and credit. Aided by fluctuating rainfall, undeveloped irrigation facilities, groundwater depletion and the absence of a sign of a second green revolution along with a sharp decline in agricultural productivity in states like Punjab and Haryana gave an impression of a depressing scenario with agricultural growth, amounting to only 1.6% per annum. However there have been positive developments in the last decade with the introduction of new policies and initiatives by the government which have led to an emergence of a positive picture with growth now 3.5% per annum.

POLICIES
The turning point came with the Mid-Term Appraisal of the Tenth Five Year Plan (2002-03 to 2006-07), which reviewed the trend in agriculture and proposed steps to address the malaise. * First, the Union Budget allowed for increase in allocations for departments concerned with development and research of agriculture, animal husbandry,

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