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Topic : GDP
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Created by : K LAXMINARAYANA RAO, Freelancer  | 03 17 2010 12:34:58 +0000
Activity:  371 views;  last activity : 07 06 2010 20:18:09 +0000

India will create history this year, reports The Economist. For the first time ever, India's manufacturing will contribute more to its GDP than agriculture. However, we are confused. We do not know what to call such a phenomenon. Manufacturing sector's victory or agriculture's defeat? The Economist has preferred to call it the latter. It bemoans how the agriculture output in India has been a productivity disaster. Soils are getting insensitive to the use of fertilizers and dependence on monsoons has barely come down. And it rubs further salt in the wounds by pointing out the rapid strides that China has taken in agriculture. The truth is that while India has freed industry, agriculture remains a tightly controlled entity. Just to give an example, fixed prices exist for 25 commodities even now and input like fertilizers are subsidized. The end result? There is no incentive for the farmer to switch to other crops.

Furthermore, with the Government using most of the funds towards subsidies, there is hardly anything left for improving infrastructure or spending on research. As the article points out, India needs to stop seeing agriculture as a problem to be nursed and start thinking of it as an opportunity to be grasped. We couldn't have put it better.

 
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It is the victory of Manufacturing Sector Vs It is the failure of Agriculture
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That Manufacturing is growing in India is a news by itself and it is able to do so overriding electricity and other infrastructure woes is yet bigger news one can only marvel at (if true).

Yet where it is happening, is it manufacturing or at best assembling activity given a boost by higher purchasing power triggered by 6th Pay commission and just a transitory surge, are several issues that may require revisit. If an increase in export of iron ore and import of finished steel is being termed manufacturing activity, at best it is flawed vision.


By Ravindra Sharma, Managing Consultant, CHEF-India  03 18 2010 05:33:58 +0000
 
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I hope some of the manufacturing industries are also depends on agricultural sector either directly or indirectly. Therefore, it is not the total failure of agriculture sector. Unfortunate in India is there is no national agricultural policy after the independence. Now the time has come to take the "agriculture as an industry" and make the agriculture as self sustain model to the farmer.


By Kumara Swamy, Project Associate, IIIT-H  03 18 2010 04:00:04 +0000
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I think it is a victory. Recent days the manufacturing sectors are really doing good. Many foreign companies have started their manufacturing plant in India. This is a major reason for the increase in GDP compared to the agriculture. I may feel happy being into manufacturing industry, but agriculture being the backbone of India should look into new strategies to increase their contribution.


By Isha Verma, Sales/BD Manager, Larsen & Toubro  | 03 18 2010 10:24:19 +0000
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High prices of food items are due to less production, as market rule. After dubling the prices is any farmer get surity of two time meals ?No' is it that food producer get there appropriat returns as much as Manufacturing ind. get. Why Farmers sybling do their paternal busines. Why not they join manufacturind Ind. I think it is a red symbol for Green revolution.


By Chandresh Kumar, Planning Engineer, TEMA INDIA LTD  | 03 28 2010 06:58:48 +0000
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The government has been doing something for the agriculture sector , but it is not enough. The Union budget outlay for agriculture was Rs. 2700 crores in 1996 , which in this budget is Rs. 10000 crores.

However , the major reason for farmer suicides in most areas of the country is because farmers have shifted from food crops to cash crops. Prices for these crops are entirely market driven , and when there is a surplus and prices drop , farmers do not get any return on their investment. In the case of food crops , the crop could still be used by the farmers to sustain themselves till another season.

Another reason for India's poor performance in the agricultural sector is the loss while in storage. Lakhs of tonnes of food crops rot while in FCI silos.

All this shows that the government emphasis on agriculture is not as much as it should be. Considering that over 60 % of India's population is in the agricultural sector , the government should do much more to boost this sector of the economy.


By K. NARAYAN, None, None  | 03 18 2010 05:20:40 +0000
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There is growth in the manufacturing sector and there is no second openion about the progress we have been making in the manufaturing sector. Thanks to the private efforts and the proactive policy of the Government, including the economic stimulous. How ever the failure of Agricluture sector over the years is the main reason for manufacturing sector replacing the agriculture sector as the top contributer to the GDP. While both Government and the Private is wasting their energy and funds on developments that require leasty preiority like the recent BT Brinjal, we are forgetting main food crops totally. If only we would have concentrated on improving the productivity of Oil seeds, Pulses and other food grains and put in efforts to retrive the present losses of coomodities due to poor and unscientific handling , storage and distribution; concentrated on improving the productivity of agri crops which are currently being imprted like raw cashew nuts, oilseeds ect to feed the processsing facilities already crested in the country, Agriculture would have remained as top contributor to the GDP.


By K LAXMINARAYANA RAO, Freelancer  | 03 17 2010 12:34:58 +0000
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