FDI in Agriculture Sector in India with Special Reference to Academicians

Abstract

Agriculture is the backbone of Indian economy. Nearly 70% of the society’s livelihood is dependent on agriculture and account for 19% of India’s GDP. To promote agriculture growth and to eliminate poverty, agricultural investment is mandate. National Savings is not able to meet the requirements of agricultural need for growth and development, thus global investment is inevitable to meet the investment requirement in agriculture. FDI in agriculture sector boosted up to Rs.611.28 Crore till December 2017. According to Indian scenario FDI up to 100% is allowed under the automatic route but subject to certain conditions mentioned in FDI policy. FDI in agriculture sector is inevitable factor that drives agriculture to attain sustainability through foreign investment. Foreign investment in agriculture also enables farmer to implement new techniques in farming that increase the yield and production capacity along with fund inflow. Farmers in India undergoing many turbulence because of inadequate fund, unequal distribution of subsidies, exorbitant interest rates, obsolete technology, traditional farming pattern, inadequate crop rotation, monsoon failure and natural calamities. It is remarkable evidence that FDI in agriculture remove poverty, hunger, ensure growth and development. Agriculture investment can be segregated as private or public and foreign or domestic. Many researches have shown a positive result on going ahead with FDI in many sectors. It is notable that national savings are not able to match the growing need of the economy, thus FDI is inevitable factor to promote agriculture and all other sector. This paper concentrates on the FDI inflow in Agriculture sector in India and the challenges faced by the sector in meeting the investment. Both primary and secondary data’s are used to support this study. Primary data’s are with special reference to academicians to analysis their overview of FDI in agriculture. Secondary data’s are pooled from government source and websites. This paper enable to find out the need for FDI in agriculture and how to meet the challenges faced during the critical period.