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Indian agriculture reform plans will prove inadequate

Monday, July 10, 2017

Subject

The outlook for Indian agriculture.

Significance

In the agricultural year 2016-17 ended in June, Indian agriculture seems to have put two bad crop years behind it and may be set for a reasonable performance in 2017-18 as well. Performance last year was helped by a good monsoon; these conditions may continue over the coming year. However, this has coincided with a rise in farmer protests.

Impacts

  • The effect on the non-agricultural sector is in itself reason for the government to intervene to address the sector’s woes.
  • The size of India’s rural vote is also an incentive.
  • The reliance on credit rather than government spending to boost agricultural growth is a key long-term concern.

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