Liberalisation, the state and agriculture in India

Abstract

Indian state embarked upon a comprehensive reform of the economy in late 1980s, and there is more or less consensus amongst policy makers regarding liberalization. The reform process in India has not encountered much resistance from pressure groups because it has not made much headway in respect of debureaucratising and depoliticising the management of the infrastructure and in decentralizing rural development. It is important in this context to look at the macroeconomic policy changes and its impact on agricultural sector. This article attempts to analyse the performance of Indian agriculture under liberalisation. We know that in the recent past Indian agriculture is being neglected. The benefits of liberalisation could not hitherto reach the rural poor because of the failure of economic reforms to penetrate into the vital agricultural sector. The article also attempts to analyse the adverse impact, if any, of free market conditions on the rural poor and suggests changes to revamp agriculture so as to make it more competitive.