Investment and Subsidies in Indian Agriculture
نویسنده
چکیده
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. ASARC Working Paper 2007/03 Raghbendra Jha Investment and Subsidies in Indian Agriculture
منابع مشابه
Agricultural Subsidies in India Boon or Curse
A progressive agriculture serves as a powerful engine of economic growth of any country. It helps in initiating and sustaining the development of other sectors of the economy. In view of this, after independence the Government of India adopted a positive approach and specific programmes like new agriculture technology were introduced. Indian farmers being poor were not in a position to buy thes...
متن کاملInvestment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia
The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific re...
متن کاملInvestigating the Welfare and Environmental Effects of Research and Development Subsidies and Energy Consumption Taxation to Reduce Air Pollution in Iran
Recently, sustainable development and policy on improving the quality of the environment have attracted economists. The use of fossil fuel tax and subsidies to research and development are among the tools that can reduce air pollution by creating economic incentives and relative price adjustments. In this regard, the present study uses a Computable General Equilibrium (CGE) model to examine env...
متن کاملThe Effect of Agricultural Production Subsidies Reduction in the Economic Variables of Agricultural Sector of Iran: Multifunctional Assessment in CGE Model
The production of public goods like amenity value of the landscape, food security, preservation of rural communities and rural lifestyle, by agricultural sector is a subject that has been widely accepted by experts. However, in many policies and political analyses carried out, solely the production of private goods by the agricultural sector is paid attention and the important function of publi...
متن کاملRural Investment and the Dynamic Cost of Income Uncertainty
This paper studies optimal investment and the dynamic cost of income uncertainty, applying a stochastic programming approach. The motivation is given by a case study in Finnish agriculture. Investment decision is modelled as a Markov decision process, extended to account for risk. A numerical model for computing the dynamic uncertainty cost is presented, applying the classical expected value of...
متن کامل