FDI IN AGRICULTURAL SECTOR IN INDIA: STATUS AND CHALLENGES

Commerce

Agriculture has a greater role to play in the economic development of a country. Around 2/3rd of the world population is dependent on agriculture for its livelihood. As per 2011 Census, In India, 69% of the total population lives in villages and more than 49% of the total working population are dependent on agriculture. Apart from contributing 17% to national income, it provides largest employment opportunity for larger segment of the population. In India more than 49% of the population, still depends on agriculture. Indian Agriculture is regarded as the back bone of Indian economy. Agriculture supplies food grains to people. To raise the standard of living of the people and to enable them to use the benefits of science and technology, miraculous advances in agriculture, industry, transport, communication, education, health services and other fields, it is almost essential that, capital formation should take place at a higher rate than before, so that the big development projects may be financed properly. When domestic capital available is not sufficient, it must be compensated through other means and FDI is an important source to supplement the capital scarcity faced in the country. In view of this, significant improvements are required to boost agricultural performance and growth in order to increase output through technological innovations and efficiency.FDI plays a very significant role in increasing growth in the agricultural sector by offsetting the investment and technological gaps, mainly as a result of limited income and sources of credit. This paper analyses the impact of such FDI on Agricultural sector.

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