IRMA STUDY MATERIAL

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1. Macro-economics ........................................................................................................ 3
1.1. Tenth plan............................................................................................................. 4
1.2. Eleventh plan ........................................................................................................ 6
1.3. Vision 2020 .......................................................................................................... 7
2. Land............................................................................................................................ 9
2.1. Soil type................................................................................................................ 9
2.2. Waste land .......................................................................................................... 10
3. Agriculture ................................................................................................................ 11
3.1. Food grains ......................................................................................................... 13
3.2. Commercial crops............................................................................................... 14
3.3. Cropping season ................................................................................................. 15
3.4. Agriculture exports ............................................................................................. 15
3.5. Irrigation ............................................................................................................. 16
3.6. Revolutions......................................................................................................... 17
A brief description of the major revolutions: ................................................................ 18
3.7. Agriculture: At A Glance ................................................................................... 18
3.8. India and world: comparison in agriculture........................................................ 20
4. Agri Business ............................................................................................................ 21
4.1. Fertilizer and pesticides ...................................................................................... 21
4.2. Food processing.................................................................................................. 24
4.3. Agriculture machinery........................................................................................ 25
4.4. Agriculture markets ............................................................................................ 27
4.6. Agriculture finance ............................................................................................. 28
5. Forest ......................................................................................................................... 30
6. Agriculture Allied Activities..................................................................................... 31
6.1. Horticulture......................................................................................................... 31
6.2. Poultry ................................................................................................................ 31
6.3. Dairy ................................................................................................................... 32
6.4. Sericulture........................................................................................................... 32
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6.5. Fish ..................................................................................................................... 33
6.6. Animal Husbandry.............................................................................................. 33
7. Land reforms ............................................................................................................. 35
8. NGOs......................................................................................................................... 37
9. Development schemes and indicators ....................................................................... 41
9.1. HDI index............................................................................................................... 42
9.2. IRDP....................................................................................................................... 43
9.3. Self Employment programs.................................................................................... 43
9.4. Wage Employment programs................................................................................. 44
9.5. Education................................................................................................................ 44
9.6. Health ..................................................................................................................... 46
10. Micro finance ......................................................................................................... 47
11. Cooperatives........................................................................................................... 48
12. Retail revolution and farmer .................................................................................. 50
13. ITC e-Choupal........................................................................................................ 52
14. WTO and Indian agriculture .................................................................................. 56
15. Important Institutions ............................................................................................. 58
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1. Macro-economics
India is the second fastest growing major economy in the world, with a GDP growth rate
of 9.4% for the fiscal year 2006–2007. The average for last three years is close to 9%.
Beating Japan, the economy of India is expected to be the third largest in the world as
estimated by purchasing power parity by the end of this fiscal year. When measured in
Dollar terms, India is the twelfth largest in the world. Currently its GDP has more than
US $1.0 trillion. But per capita income of the country is low at $3,800 at PPP and $735
at nominal1 due to country’s huge population. In the World Bank classified India as a
low-income economy in 2006, but India will probably move into the lower middleincome
country classification of per capita income by 2008. Indian foreign exchange
reserves are increasing at rapid rate. During August, 2007, it was $230 billion. With the
recent surge in inflows, no wonder by the time you will read this document it would be
more than $250 billion.
Following graph compares the growth rate of major economies2.
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2 Source : International Monetary Fund, The Economist and the OECD
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The PPP picture is brighter. Following graph tells that it’s not far when we will catch up
china and America3.
GDP on PPP bas is
0
2
4
6
8
10
12
14
16
US
China
India
Japan
UK
Russia
Brazil
Korea
Australia
HK
Singapore
US $ t r il l ion
1.1. Tenth plan
During tenth plan (2002-07) period India has seen the growth like never before. The table
below is showing the sectoral growth rates and ICOR under Different Sectors of the
economy
3 *Estimates by IMF: World economic outlook , September 2006
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Tenth Five year Plan in a nutshell (2002-07)
Macro-economics parameters of the tenth plan are given below. The most noticeable is
the increase in the savings and investment rate. If an economy wants to grow with the
rate of 9% or more its investments rate must be more than 35%. Investment comes from
savings so higher savings rate is prerequisite of higher growth. Can you guess which
country has highest savings rate. Obviously China!
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Parameter 10th plan Post Plan
Domestic Savings Rate (%
of GDPmp)
26.8% 33%
Current Account Deficit (%
of GDPmp)
1.6% 3.1%
Investment Rate(% of
GDPmp)
28% 36%
GDP Growth Rate (% per
annum)
7.9% 9.4%
Export Growth Rate(% per
annum)
12% NA
Gujarat, Karnataka and Delhi were grown fastest with the growth rate in state GDP was
more than 10%. Bihar and Kerala were among the slowest with growth rate in state GDP
was 6.5%. Insurgency hit north eastern (NE) states were worst performers with growth
rate hovering at the lower 5%.
1.2. Eleventh plan
Eleventh plan (2007-11) is under the finalization process. Most of the policies and targets
are already finalize and reports on it are available on the planning commission website.
Targets growth rate for agriculture sector4 is 4 %.
Growth rate for agriculture sector achieved during 10th plan: 1.8%
Parameter Target for 11th plan
GDP growth rate 9%
Domestic Savings Rate (%
of GDPmp)
33%
Current Account Deficit (%
of GDPmp)
2.8%
Investment Rate(% of
GDPmp)
35%
4Montek Singh Ahluwalia, planning commission,
http://planningcommission.nic.in/plans/planrel/53rdndc/dchndc53.pdf
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In the table below, the projections for sectoral growth and Import-Export growth rates are
given.
1.3. Vision 2020
Inspired with president Kalam, country has prepared a vision for 2020. Committee
headed by K C Pant has prepared the vision document in 2002. Few high lights are given
below.
Vision 2020 at
glance5
5 Report of the committee on vision 2020 planning commission,
http://planningcommission.nic.in/plans/planrel/pl_vsn2020.pdf
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2. Land
Following tables shows some facts about the Indian land. India which is 7th largest
country has 2nd largest cultivable land and largest irrigated land in the world.
Parameter Indian value World Rank
Total Area 329 million hectares 7th
Land Area 297 million hectares 7th
Percentage of World Area 2.42 per cent 7th
Forest Area6 63 million hectares (19.4 %
of the total area)
Areable land 162 million hectare (43% of
Total)
2nd (USA 1st)
Irrigated Area 55 million hectares (40% of
total Arable land)
1st
Rain irrigated Area 60%
Cereals production 231 in year 2001 3rd behind China, USA
2.1. Soil type
India- Land – Soils
Soil States Useful in production of
Alluvial soils cover about
24% of the total land.
Found in Indo-Gangetic
Plains (Punjab, Haryana,
UP), in the valleys of
Narmada and Tapti in
Madhya Pradesh and the
Cauvery in Tamil Nadu.
These soils are considered
very good for the
production of wheat, rice
other cereals, pulses, oil
seeds, potato, sugarcane,
etc.
Black soils Found in the States of
Maharashtra, Gujarat,
Madhya Pradesh,
Karnataka, Andhra Pradesh,
Tamil Nadu, Uttar Pradesh
and Rajasthan.
These are also considered
good for cultivation of
cotton, cereals, pulses, oil
seeds, citrus fruits,
vegetables, etc.
6 Source: Data as of year 1999, planning commission website. The data on forest cover varies as different
agencies have different definition of what constitute a forest
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Red soils Found in Tamil Nadu,
Karnataka, Kerala,
Maharashtra, Andhra
Pradesh, Madhya Pradesh,
Bihar and West Bengal.
These are most suited for
rice, ragi (millet), tobacco
and vegetable cultivation.
2.2. Waste land
Wasteland is a degraded land which does not fulfill their life sustaining potential.
Wasteland can result from inherent / imposed disabilities such as by location,
environment, chemical and physical properties of the soil or financial or management
constraints.
Wastelands statistics indicate that about 63.85 million hectares, which account for
20.17% of the total geographical area (328.72 million hectares) exist as wastelands in
India7.
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7 Source: 1:50,000 scale wasteland maps prepared from Landsat Thematic Mapper/IRS LISS II/III Data
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3. Agriculture
The Indian Agricultural sector provides employment to about 65% of the labour force,
accounts for 18.5% of GDP in 2005, contributes 20-21% of total exports, 14.7% of the
total export earnings, and raw materials to several industries.
Area, Production and Yield of Food grains Along with Percentage Coverage under
Irrigation in India
Year Area
(Million
Hectare)
Production
(Million Tonne)
Yield (Kg./Hectare) % Coverage
under
Irrigation
1950-51 97.32 50.82 522 18.1
1990-91 127.84 176.39 1380 35.1
2000-01 121.05 196.81 1626 43.4
2006-07* 124.07 211.78 1707 NA
Growth in Agriculture
Annual average Growth Rate (Percent)
Five Year Plan and Years Growth rate of agriculture
and allied sectors
Overall GDP Growth Rate
Eight five year Plan 4.7 6.7
Ninth five year Plan 2.1 5.5
2003-04 10 8.5
2004-05 .07 6.9
2005-06 2.3 7.5-8
Growth Rates
Growth rates 2004-05 2005-06
GDP 7.5% 8.2%
Agriculture .7% 2.3%
Industrial Sector 8.6% 9.0%
Service sector 9.9% 9.8%
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Food Crops
Crop Area
Rice West Bengal, U.P., Andhra Pradesh
and Haryana.
Wheat Punjab, Haryana and U.P and
Madhya Pradesh
Millets Tamil Nadu, Maharashtra, Gujarat,
Madhya Pradesh, U.P. and Haryana.
Barley U.P., Punjab and Haryana.
Maize Bihar, U.P., Punjab, Rajasthan,
Maharashtra and Gujarat.
Pulses Punjab, Rajasthan, Maharashtra,
Bengal and Gujarat
Sugarcane U.P., Bihar, Maharashtra.
Non-Food crops or Cash crops
Tea Assam, West Bengal, Kerala.
Coffee Karnataka, Kerala and tamil nadu.
Oilseeds Orissa, U.P., Maharashtra, Gujarat, Andhra
Pradesh.
Tobacco U.P., bihar, Tamil Nadu, Karnartaka and
Gujarat.
Cotton Maharashtra, Gujarat, Andhra Pradesh and
tamil Nadu
Jut West Bengal, Assam, Bihar and Orissa
Rubber Tamil Nadu, Karnataka and Kerala
Silk Karnataka, West Bengal, Assam and
Kashmir.
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3.1. Food grains8
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Food grains Production in Millions tones
Following table shows the Crop-wise Production of Food Grains in Kharif/Rabi9
Crop-wise Production of Food Grains in Kharif/Rabi
Season in India
(2004-2005 and 2005-2006)
(Million Tonnes)
Crop 2004-05 2005
-06
Kharif Rabi
Tot
al
Khar
if
Rabi Tot
al
Rice 79.04 14.4
6
93.5 75.45 12.35 87.
8
Wheat - 79.5 79.5 - 75.53 75.
53
Maize 12.66 2.42 15.0
8
12.54 2.85 15.
39
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9 Source: Department of Agriculture and Cooperation, Ministry of Agriculture, Govt of India.
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Pulses 6.1 9.2 15.3 - - -
Total Coarse
Cereals 28.69 7.83 36.
52
Total Pulses 5.78 9.37 15.
15
Total
foodgrains
113.8 111.
3
225.
1
109.9
2
105.0
8
215
Cotton* 15 - 150 165 - 165
Jute ** 106 - 106 101.2 - 101
.2
Sugarcane
(Cane)
Continued in Kharif
and Rabi
- 270
0
- - 237
.5
Note : * : Cotton lakh bales of 170 kg each
** : Jute and Mesta lakh bales of 180 kg. each.
3.2. Commercial crops
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3.3. Cropping season
The Indian crops can be divided into three groups in which two are major namely Kharif
& Rabi-
Kharif crop- The Kharif season is during the southwest monsoon (July-October). During
this season, agricultural activities take place both in rain-fed areas and irrigated areas.
Kharif crop includes Rice (Paddy), Jowar, Bajra, Maize, Cotton, Sugarcane, Seasamum,
Soyabean, and Groundnut.
Rabi crops- The Rabi season is during the winter months, when agricultural activities
take place only in the irrigated areas. This crop is sown in October last and harvested in
March/April every year. These crops include Wheat, Jowar, Barley, Gram, Tur,
Rapeseed, and Mustard.
Zayad Crop- In some parts of the country a crop is sown during March to June every
year. Zayad crops include Melon, watermelon, Vegetables, Cucumber, Moong, Urad etc.
Kharif and Rabi season comparison: Comparison of major food grains and total
production of rice and wheat. The comparison can also be seen in the table shown in the
sections of food grains and commercial crops.
Grains 2004-05
in million tonnes
Rice 87.8
Wheat 73.03
Rabi (all food grains) 103.4
Kharif (all food grains) 102.9
Total (all food grains) 206.3
3.4. Agriculture exports
The Agri-export and EXIM policy 2004-09 emphasized the importance of agricultural
exports and announced the following measures to boost the agri-ecports:
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