The agriculture subsidies are integral part of the farmers life in India. The agriculture subsidies plays very important role in agriculture sector in every country. The every year's government of India spends lot of money in various agriculture subsidies for growth of agriculture sector. The total arable & permanent cropland is 169,700 thousand hectors in India. The authors used only secondary data for research. This paper basically focuses on overview of agriculture subsidies in India with help of provisions of funds for agriculture in five years plans and annual budget. The authors also study types of agriculture subsidies and distribution criteria in India. Last few years the percent investment in agriculture sector is increases & percent of agriculture subsidies is decreases in India. To know the percentage agriculture subsidies in developed countries and developing countries, also number of dependent on agriculture sector. Keyword- Agriculture, Annual budget, Five years plan, Investment & Subsidies I. Introduction Indian Government play vital role in agriculture sector development. The government role is diverse and varied. Some of the cited reasons for vital role are self-sufficiency, employment creation, support to small- scale producers for adopting modern technologies and inputs, reduction of price instability and improvement of the income of farm households. This vital role can take a number of forms such as import-export policies and domestic policies like price support programmes, direct payments, and input subsidies to influence the cost and availability of farm inputs like credit, fertilizers, seeds, irrigation water, etc. Of all the domestic support instruments in agriculture, input subsidies and product price support are the most common. Various benefits are cited in justifying input subsidies: economic, environmental and social (World Bank 2008). Input subsidies can bring economic benefits to society. Inputs like fertilizers, irrigation water and electricity have a significant share in agricultural subsidies in India and fertilizer subsidy has attracted much attention of policymakers, and researchers in the recent past. An agricultural subsidy is a governmental financial support paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. A subsidy, often viewed as the converse of a tax, is an instrument of fiscal policy. Derived from the Latin word subsidium, a subsidy literally implies coming to assistance from behind. The objective of subsidies, by means of creating a wedge between consumer prices and producer costs, lead to changes in demand/ supply decisions. The forms of subsidies are a cash payment to producers/consumers is an easily recognizable form of a subsidy. However, it also has many invisible forms. Thus, it may be hidden in reduced tax-liability, low interest government loans or government equity participation. If the government procures goods, such as food grains, at higher than market prices or if it sells as lower than market prices, subsidies are implied 1.1) Review of Indian Agriculture Sector Indian agriculture has an extensive background which goes back to 10 thousand years. At present, in terms of agricultural production, the country holds the second position all over the world. In 2009, agriculture and it contributed 16 % of the Gross Domestic Product of the country. In addition, the sector recruited about 52% of the entire manpower. In spite of the fact that there has been a gradual fall in its contribution to the gross domestic product of the country, agriculture is currently the biggest industry in India.
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