INVESTMENT IN AGRICULTURE SECTOR

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The share of Gross Capital Formation in agriculture in the Gross Domestic Product at 1993-94 prices has been estimated at 1.3 per cent in 2000-2001 and 2001-2002 as compared to 1.4 per cent in 1999-2000. This reflects the decline in public sector investment in agriculture. However, Gross Capital Formation in agriculture in absolute terms has increased from Rs.17,304 crore in 1999-2000 to Rs.18,057 crore in 2001-2002 at 1993-1994 prices.

Keeping in view the relatively low investment in agriculture vis-à-vis its share in GDP, efforts are being made to boost investment in agriculture. The Union Budget, 2003-04 proposed a new central sector scheme on Hi-tech Horticulture and Precision Farming. Major components of the scheme are use of hi-tech interventions like fertigation, use of biotechnological tools, green food production and hi-tech green houses. The centre has also been implementing long term programmes like Accelerated Irrigation Benefit Programme, Drought Prone Area Programme, Desert Development Programme, National Watershed Development Project for Rainfed Areas, Integrated Wasteland Development Programme, and Integrated Afforestation and Eco-Development Project Scheme. These programmes are likely to increase capital formation in agriculture by the public sector and induce the private sector to increase investment in agriculture.