Rooted In The Past

For the past several years, India has had good monsoons. Yet there is little reason to celebrate. For, despite this bounty, agricultural growth has actually slowed, from 3.4 per cent in the early years of the current plan to 0.9 per cent in 1995-96.

Policy-makers need to worry because the deceleration has come at a time when the agricultural sector urgently needs to adjust its focus from self-sufficiency to a market orien- tation in readiness for the new global trade order.

Agricultural economists, though, are not surprised. This is because the key reason for this slump has been so evident in recent years that it is even mentioned in the latest Economic Survey Update.