LIBERALIZATION AND INDIAN AGRICULTURE SECTOR
Dr. Pravinaben N. Pandya.

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The increasing economic integration of the Indian economy with global processes has brought considerable challenges at the door of its agricultural sector. These challenges have arisen from two broad sets of problems. In the first place, a number of major crops have been witnessing a decline in productivity growth, in particular over the past decade. Second, and perhaps more important from a short run perspective, is the fact that Indian agriculture faces unfair competition from cheap imports, which poses an enormous threat to the livelihoods of the farming communities. It is quite clear, therefore, that a comprehensive framework needs to be evolved, one that addresses the specific problems that the agricultural sector faces at the present juncture.
The above-mentioned trends in the use of SPS measures and TBT hold significance for India for yet another reason. Suggestions have been made in some quarters that Indian agriculture should focus on exports to provide impetus for its growth. These suggestions are based on the assumption that the relatively low cost agriculture in India will have the competitive advantage in the global market place, which can help generate additional markets. However, as food standards become increasingly important in the larger markets, mere price advantages that countries like India enjoy, can contribute precious little in obtaining additional market access. India would therefore have to invest heavily in upgrading its production facilities - from the farm to the processing units - to have a look-in into the larger markets. But with investments in agriculture decreasing steadily from the mid-1980s, it would require a complete turnaround in the government's priorities to reverse the trend. The larger issue that needs to be addressed in the context of the suggestions for an "export-oriented" agricultural sector in India is the impact such a policy orientation would have on the country's food security. Arguments advanced in this respect have been that the increase in the stocks of foodgrains is an indicator that the country has solved its problems relating to food security. As a corollary it was suggested that diversification of Indian agriculture should take place rapidly so as to better utilise the available resources
Impact of Economic Reforms Process on Indian Agricultural Sector
Agricultural sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolve, and any change in its structure is likely to have a corresponding impact on the existing pattern of social equality. No strategy of economic reform can succeed without sustained and broad based agricultural development, which is critical for raising living standards, alleviating poverty, assuring food security, generating buoyant market for expansion of industry and services, and making substantial contribution to the national economic growth. According to [Bhalla97], of the three sectors of economy in India, the tertiary sector has diversified the fastest, the secondary sector the second fastest, while the primary sector, taken as whole, has scarcely diversified at all. Since agriculture continues to be a tradable sector, this economic liberalization and reform policy has far reaching effects on (I) agricultural exports and imports, (ii) investment in new technologies and on rural infrastructure (iii) patterns of agricultural growth, (iv) agriculture income and employment, (v) agricultural prices and (vi) food security [Bhalla93]. Reduction in Commercial Bank credit to agriculture, in lieu of this reforms process and recommendations of Khusrao Committee and Narasingham Committee, might lead to a fall in farm investment and impaired agricultural growth [Panda96]. Infrastructure development requires public expenditure which is getting affected due to the new policies of fiscal compression. Liberalization of agriculture and open market operations will enhance competition in "resource use" and "marketing of agricultural production", which will force the small and marginal farmers (who constitute 76.3% of total farmers) to resort to "distress sale" and seek for off-farm employment for supplementing income.
Indian Agricultural Sector
The Indian Agricultural sector provides employment to about 65% of the labour force, accounts for 27% of GDP, contributes 21% of total exports, and raw materials to several industries. The Livestock sector contributes an estimated 8.4 % to the country GDP and 35.85 % of the agricultural output. India is the seventh largest producer of fish in the world and ranks second in the production of inland fish. Fish production has increased from 0.75 million tons in 1950-51 to 5.14 million tons in 1996-97, a cumulative growth rate of 4.2% per annum, which has been the fastest of any item in the food sector, except potatoes, eggs and poultry meat. The future growth in agriculture must come from [GBSingh2K] viz., new technologies which are not only "cost effective" but also "in conformity" with natural climatic regime of the country; technologies relevant to rain-fed areas specifically; continued genetic improvements for better seeds and yields; data improvements for better research, better results, and sustainable planning; bridging the gap between knowledge and practice; and judicious land use resourc surveys, efficiemanagement practices and sustainable use of natural resources.
Informatics for agricultural development requires coordinated inter-sectoral approach and application of appropriate Information Technology (IT) tools, in the areas of :- Agricultural Research,
Agro-meteorology, Agricultural Marketing, Agricultural Engineering and Food processing, Agricultural Extension and Transfer of Technology,
Credit & Co-operation, Crop Production and Protection, Environment & Forest, Fertilizers and Manure, Fisheries, Irrigation and Drainage Systems, Livestock, Dairy Development and Animal Husbandry, Rural Development and Planning, Soil and Water Management, Watershed Development, and Wastelands Development For increasing production at micro level, an inventory of currently used, potentially available, and an evaluation of the quantity and quality of these resources is required. This requires design and development of agricultural resources information system using state-of-the-art IT Tools, as given below, to facilitate effective agricultural planning and development :- Data warehousing (Data Bases & Model Bases) Expert Systems & Knowledge Bases
Networking (Internet, Intranet and Extranet) Geographical Information System (GIS) Application of Remote Sensing Data Multi-media Information System Decision Technology System E-Commerce & E-Governance, and Digital Library Decision Support Systems
Decision Support Systems (DSSs) can deliver the technology of management and the relevant knowledge which managers need to get their jobs done. Most of today's DSSs support the "choice" phase of decision making. Enhanced DSSs, known as Management Support Systems (MSSs), are attempting to fill the gaps in decision-making support, not provided by the traditional DSSs. For complete support of critical management activities of communication and decision making - including qualitative and creative processes - a collection of computer information system, as given below, is required:- Decision Support System (DSS) Group DSS (GDSS) Executive Information System (EIS)
Executive Support System (ESS) Expert System (ES) Idea Processing System (IPS) Management Information System (MIS) Office Automation System (OAS) Transaction Processing System (TPS) DSSs, Group DSSs, ESs, and components of ESSs and MISs primarily support the decision making process. "A complete set of enhanced DSS together with an IPS constitutes a Decision Technology System (DTS) which provides complete, integrated support for all phases of the decision-making process and delivers the complete technology of management for full decision support". Development of Decision Support Systems on the following areas facilitating Agricultural Resources Management are envisaged using the state-of-the-art IT tools :- Crop Suitability based on factor endowment Land Suitability Assessment; Land Productivity Assessment; Population Supporting Capacity; Land Evaluation and Land Use Planning; Land Degradation Risk Assessment; Quantification of Land Resources Constraints; Land Management; Agro-ecological Characterization for Research and Planning; Agricultural Technology Transfer; Agricultural Inputs Recommendations; Farming Systems Analysis and Development; Environmental Impact Assessment;
Monitoring of Land Resources Development. Livestock (cattle, buffalo, goat, & sheep) Farming Systems Water allocation in an irrigation system
Fodder Resources Development Water Bodies (Basin) planning systems using Watershed and Agro-Eco Region Planning Concepts
There have been a lot of research publications and also software products developed by various Agricultural Research institutions, both in India and abroad. It has been envisaged to utilize these packages and develop DSSs in districts for agricultural resources management.
Conclusion
This IT-led globalisation will certainly benefit the medium and large farmers who can invest on IT, as has happened during "green revolution". Since the agricultural development strategy has been mostly "growth-oriented" and therefore had a "built-in bias" in favour of Large farmers over Small farmers. Farmers can invest on computers to get access to Internet, but it is not possible for them to invest on "agricultural informatics" with decision support system using geomatics technology.
Reference
] Dhuruva Narayana,V.V & Prasad, B.S.N : "Soil and Water Conservation for better land & water management", Indian Farming 39(7):17-18
: Guissepi A.Forgionne 1991 "Decision Technology Systems : A Step Toward Complete Decision Support", Information Management Systems, Vol. 8, No 4, Fall 1991, Auerbach Publishers
K.V.Sundram : "The Small Framer Development Strategies For The Next Millennium", presented at National Institute of Rural Development, Hyderabad, 2000

GLOBAL RECESSION AND INDIAN ECONOMY

GLOBAL RECESSION AND INDIAN ECONOMY
DR. PRAVINABEN PANDYA

In macro economics, a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. An alternative, less accepted definition of recession is a downward trend in the rate of actual GDP growth as promoted by the business-cycle dating committee of the National Bureau of Economic Research The world is embroiled in a recession. Banks are failing, jobs are disappearing, wealth attached to property and stocks is evaporating. The hopes of so many that rest upon saving for the future is now destroyed. All those years of working and saving for retirement, wiped out by the recession in the past few months. The mass of people feel hopeless and worried about their future. Only the devotees of Lord Krsna are above the fray. This is a great time for spreading the message of Lord Caitanya. Lord Krsna says in the Gita, that four kinds of pious men begin to render devotional service unto him - the distressed, the desire of wealth, the inquisitive, and he who is searching for knowledge of the Absolute (BG 7.16). When a pious person is in distress, he will question his existence. Why do I work so hard to loose everything? Why do I have to struggle so hard to achieve flickering happiness? And, when he comes in contact with a Vaisnava and hears the true meaning and purpose of life, he begins his journey back to Godhead.
On the other hand, an impious soul will never accept Krsna as the Supreme Personality of Godhead. We have seen and heard Srila Prabhupada preach to many of the most respectful non-devotees of the world. No matter what Srila Prabhupada said, they never would accept. Still, these greatly fortunate demons, have received the pure transcendental sound vibration from the lips of a pure devotee of Krsna. And, it will have an effect if not in this life, then the next. Just as when medicine is taken by a patient, it takes time to see the result. The Holy name of Lord Krsna is His most powerful energy and it can overcome any influence of kali yuga. So, we who are followers of Srila Prabhupada should show compassion for those who are suffering as a result of what is happening in the world at this moment. We have an opportunity to approach many people who are looking for answers to their suffering, and they will be eager to hear. We have the the finial solution to their problems. It is to take to this process of Krsna Consciousness and go back home back to Godhead. We cannot overcome the dictates of the material energy. It is best to concentrate on purifying our selves and trying to save others.
IMPACTS OF RECESSION ON ASIAN COUNTRIES:---
The stagnation/decline of the traditional engines of growth. ( US, Euro Area, Japan, UK, Canada and Australia-all hovering less than 2% GDP growth, not just in the past 3-4 yrs but likely to be continue so, in the near future. There are a handful who are expected to have negative growth!) -the emerging engines of growth are certainly the BRICA region- BRIC nations and the ASEAN region! Contrary to perception, those countries with huge population -are likely to be more stable economies in future, as one can expect a much more robust domestic economy-and not be entirely dependent! ( A set of 11 emerging nations qualify here!!) -The emergence of SMEs and micro enterprises in the role of developing economies. -Perceived threat to nations like Japan where increased 'savings rate' -has throttled 'consumer spending' within the domestic economy. Add to it, the low population growth-and the resistance to immigrants, the nation is fast ageing!!

IMPACTS ON INDIAN ECONOMY:---
In the globalized market scenario, the impact of recession at one place/ indusrty/ sector perculate down to all the linked indusrty and this can be truly interpreated from the current market situation which is faced by the world since approx 2 month and still the situation is not in control inspite of various measures taken to fight back the recession in the market.
It is certainly true that the bad news from abroad – which shows no signs of easing up – has impacted upon domestic stock markets, investor expectations, and the exporting industries in particular. But it is also unfortunately the case that our own economy has been showing several causes for concern even before that external bad news started pouring in. There was the accelerating inflation, which particularly hit food and other items of essential consumption, and recently exacerbated by the increase in petrol prices. In addition there have been signs of decelerating growth, especially in industrial activity, and these cannot be ascribed only to reduced export orders, but are more likely to have domestic causes. Consider the index of industrial production, presented in Chart 1 (with base year 1993-94). The general index peaked in March this year, fell quite sharply thereafter and subsequently has been more or less flat at the lower level. This pattern essentially reflects the behaviour of the manufacturing index, which accounts for around 80 per cent of the weight of the general index. Such a pattern tends to be obscured by the standard way of presenting the industrial growth data, in terms of year-on-year monthly rates.
What is especially disconcerting is the evidence on electricity production, which shows hardly any increase at all but simply fluctuations around a flat trend for the past 18 months. Since electricity still remains substantially undersupplied, and its shortage can create supply bottlenecks for other production, this stagnation is worth noting. The use-based classification industrial production suggests that the slowdown in growth is spread across several important sectors. Chart 2 provides the evidence on recent trends in production in the basic, capital goods and intermediate industries. Once again, both basic goods and intermediate goods, which have strong backward and forward linkages with other industrial activity, have been stagnant and hardly increased at all over the past one and half years. The production of capital goods shows much greater volatility, with a sharp increase in March 2008 but decline thereafter from that peak.
Consumer goods are the most likely - and the first - to be directly affected by slowing demand in domestic and export markets. Chart 3 show that this too is not a recent problem, but one which has been clearly evident in the economy at least since the beginning of the current calendar year. The production of consumer non-durable goods, which account for the bulk of consumer goods (with more than 80 per cent weight) peaked in January 2008 and have fallen continuously since then. Consumer durables, onthe other hand, had benefited from a credit-financed boom that had elements of unsustainability that are eerily similar to the US credit-driven consumption boom. The significant expansion of retail credit, especially credit card debt and hire purchase schemes, had generated demand for consumer durables and automobiles, but such credit-driven expansion became increasingly problematic as interest rates increased and lenders became more concerned with the viability of this rapidly growing consumer debt.
The badly hit setor at present being the financial sector, and major issue being the "LIQUIDITY Crises" in the market. To curb the liquidity crises the RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity environment prevails. The current step to curb these being lowering of interest rates and reduction of PLR.However, the big-picture story remains unchanged – all countries in the world with current account deficits and strong credit cycles are finding it difficult to bring cost of capital down in the current environment. India is no different. New measures do not change our view on the growth outlook. Indeed, we remain concerned about the banking sector and financial sector. The BOP- Balance of Payment deficit – at a time when domestic credit demand is very high – is resulting in a vicious loop of reduced access to liquidity, slowing growth, and increased risk-aversion in the financial system.
Global recession hurting India ;-
The major impact of recession or economic slowdown is with the small exporters and importers in the country as most of them at he service sector in the IT industry has been the victim of global downswing as the profitability in most of the segments have reduced a lot.re facing the problem of heavy duties." For them it would probably end up as a positive impact while for larger IT companies it would get balanced out by reduction of outsourcing and increase for companies who actually are going to cut costs in order to meet the criteria of not going into loses for the impending slowdown." The problems of US slowdown has not only impacted the IT sector on all edges, it has perhaps made the Indian manufacturing and energy sector worrisome too. The challenges that Indian industry is encountering with is a universal problem of rising energy and fuel cost. It is always followed that as the energy prices go up there is a probability of recession. The second factor that we see today is the global developments in India Indian economy is insulated to some extent from the global environment, which is really not true, because we can very clearly see the impact of that for the past few months where there is definite indication of economic slowdown in the country. The slowdown is taking place as the result of rise in the costs of the materials all over the world, surging commodity prices, the impact of surging foodgrain prices. India's present economic crisis that has hit most of the countries across the world has been created by the investment bankers, Britain-based NRI businessman Lord Swraj Paul said in an event organized by FICCI Ladies Organization (FLO) in the national capital recently. Investment bankers have gone overboard by giving loans to people, which were more than their repaying capacity," Paul told reporters during the question answer session of the event. This crisis could be worse than what has been imagined, as the banks have not come out with the truth, The Indian economy is much less dependent on the external markets than the Chinese economy, the panel said in its review of the economy. While some export demand compression is likely to put an additional burden on our exports of goods and services, it is unlikely to be large enough to significantly depress growth. However, the flip side to this is that the pressure on prices of oil, food and other raw materials is likely to continue, making inflation management in 2008-09 quite challenging, The Rangarajan panel had already revised downward economic growth in India to 8.5 per cent for fiscal 2008-09 from the over 9 per cent rate projected by the government earlier. The independent economic think-tank, the Centre for Monitoring Indian Economy (CMIE) had, however, projected a 9.5 per cent growth rate for the economy. The Rangarajan panel had cited the slowing of manufacturing expansion following several rounds of monetary tightening, and sluggish output growth in power and mining as factors affecting growth. Finance minister P Chidambaram also told a meeting in Gurgaon that a slowdown in the US may have some impact on India's growth drastic. If the US goes into recession there will be global consequences and India will have to bear part of the global consequences," Chidambaram said. While the government is confident of maintaining growth momentum despite a surge in the value of the rupee against the dollar, record global crude oil prices and rising food prices are posing problems for policymakers. Global economic recession badly affects the Indian economy & industrial growth. Since we know that worlds economy is badly affected by the disastric ends of the worlds top bankers. Due to their Bankruptcy, their is scrcity of money in the market, also spread distrust among banks. So in the investments in the Indian s...
India nowhere close to recession: Chidambaram
While reiterating the strong position of the Indian economy amid global financial turmoil, Chidambaram expressed hope that the public had seen the worst as far as price rise in concerned. Commenting on the global economic crisis the minister said, “We must banish the fear of recession for Indian economy as we have weathered the global financial crisis. Global recession’s impact on economy has been muted as economic growth in India has been driven by domestic demand. While speaking on the effects of the global financial crisis on the Indian economy, Chidambaram admitted, “People should be ready for temporary effect of the global economic slowdown. The growth outlook remains quite robust yet this year it would be moderate at 7.9 percent. The foreign exchange reserve and foreign investment have been affected by it. Accepting the liquidity crunch in the economy, Liquidity has been tightened in the market. RBI has infused money into the market to meet the liquidity demands Asking people to repose their faith in the Indian economy, the Finance Minister commented, “Indian economy has been resilient to foreign shocks.” Talking about inflation, Chidambaram hoped that the worst is over. He said that RBI has taken measures like slashing interest rates and repo rate to curb inflation. As a result, inflation has come down from double digit figure to a single digit figure and commodity prices have started to ease since August, If the rate of inflation continues to decline, policy rates may also moderate and the bias in favour of growth may deepen... RBI's policy is now biased towards stimulating growth, Every economy will feel the effect of the US recession as it gets stronger. India will loose some jobs in the technology sector for programmersand such but will see an increase in back office workers and phone centers as US companies try to cut costs more and ship these jobs to India. legal aids will be required to prepare breafs for bankruptcy courts and defaulted credit card, home and auto loans. It is just starting and the ride from the top will be long. India will also see an increase in medical research centers and boitech medicine developement research. over all the out look for India in the next ten years is good if they can start focusing on infastructure like airports and highways. There new automobile will take the rest of the world by storm. but catch on slow here in the USA. need to develope a minivan type for around $4000 will be a hit in all the developing countries especially China.
Adverse Impact on Domestic Industry Next Year:--
According to both officials and industry sources here, the timing of the removal of QRs is disadvantageous for the Indian Industry as high oil prices may slow down the economy in the coming months and the industrial nations may like to export more at the cost of the developing countries. Indian industry that is already facing a stiff competition from both the developed countries as also China, Malaysia and some other East-Asian countries, will be facing further problems in selling their goods in the overseas market.In fact, in the exercises for formulating 2001-02 budget, the government this time is taking note of these two factors quite seriously, the impact of cheap imports on the dometic industries till now and the extent of the effect of the QRs removal on the domestic industry during the next financial year. The Federation of Indian Chambers of Commerce (FICCI) has already submitted its findings to the government on the adverse effects of cheap imports on the domestic industry. The Confederation of Indian Industry has also drawn the attention of the finance ministry following some indiscriminate imports of such goods. Decline in industrial growth rate raises the question whether it is going to be purely a temporary and irregular change or an indication of recession. A recent study made by the Institute of Economic Growth observes that the industry has indeed entered into a new phase of industrial recession. According to this study, the index of industrial production had passed through cycles in both pre and post reform periods and it appears that so far there is no long run change in the industrial production from structural reforms. An economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment.
CONCLUSION—
A slowdown in the US economy is bad news for India. Indian companies have major outsourcing deals from the US. India's exports to the US have also grown substantially over the years. The India economy is likely to lose between 2 to 3 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets deals in the US would see their profit margins shrinking. Right now exporters are feeling happy because dollar is strong against rupee but if rupee strengthens further against the dollar they may be in pressure, experts note that the long-term prospects for India are stable. A weak dollar could bring more foreign money to Indian markets. Oil may get cheaper bringing down inflation. A recession could bring down oil prices to $70. The whole of Asia would be hit by a recession as it depends on the US economy. Asia is yet to totally decouple itself (or be independent) from the rest of the world. Due to exposure of media & sensational news(because sometiems I feel media helps to deepen the panic more) common people in India is feeling insecure but frankly this is not the time to panic that much. No doubt today gloabal trade has become more interdependant and interconnected so the ripple effect had arrived but will settle down with time Recession is an accessory of capitalism which comes with its tool to manipulate business situation, that is the stock market. De link stock market to economy and there will be no recession or boosted situation. What lead the oil price increase in the world for last 4 or 5 years? There you will find the reason for recession. Not anywhere else. Oil is the major energy source for the world and its increase effect all the world in a similar way. To add the worry, US dollar become weak and all the currencies linked with it... So, when there is an unjustifiable oil price increase, a recession was on the making. Then, how the ’Economic think tanks’ at wall street could not identified it earlier?? As on today, the Sensex increased 6 plus percentage. Wondering what made this 6 percentage of economic growth in two days time...the same people will cry if the stock goes down tomorrow and ask government to intervene. The wise foreign investors will again go away with their money as long as there are people to give out their hard earned money on speculation even seeing economic death face to face..

GLOBAL FINANCIAL INSTITUTIONS

Global Financial Institutions – with special reference to Green Revolution

Dr. Pravinaben Pandya,

Banking and Economics Department.,

Dr. Subhsh Mahila Arts, Commerce and Home Science College, Junagadh. 362 001. Phone. (0285) 2670807
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It is the remarkable subject for study that the global situation adversely affects on Global Finance. Many economists suggest some important steps to remove some adverse effects. Among them, agriculture development, rural development, rural industrialization, rural marketing and agri-business developments are the main objects. So the green revolution is the significant factor for the same. The vast awareness of green revolution needs more and more money. So global finance is the main aspect and special role of global financial institutions is the remarkable aspect for researchers.
Many analysts widely perceived that Green Revolution was brought about largely to satisfy the needs of the corporate sectors of the industrialized countries who could rightly assess the enormous market potential of agro- chemicals particularly fertilizers and pesticides in the developing countries with fast rising population.
Global Financial Institutions:-
The agricultural policies along with many other polices were influenced right from the middle of the last century by the World Bank ( W.B.), International Market Fund ( I.M.F.) and similar Food and Agricultural Sector in particular.
The so-called green revolution with HYVs was eminently suitable for uptake of large quantities of inorganic fertilizers, but unlike the local cultivators. Because it is newly introduced once being less resistant to pests and diseases. It required large applications of chemicals pesticides. Besides imports, loans were granted for setting up fertilizer and pesticide factories with licenses from foreign manufacturers..
In fact, started from 1944 , for World Bank loans, the primary role of the bank had been to ensure the interest of the global corporate, so a s to enable them to capture the huge potential markets of the developing countries and the highest populated countries.
India would naturally based solely on imported inputs offered. A unique opportunity to have a tight grip on food and agriculture and all associated sectors is found with the help of global finance.
Policy of Global Finance:-
World Bank’s policy – oriented loans during the rise of green revolution covered financing of
· Irrigation project
· Seed corporations
· Fertilizer factories
· Pesticide factories…… etc. with licensing from appropriate MNCs
And so on. It includes more recent activites. Besides financial aspects, give it the role of a knowledge provider and funding for policy oriented research.
Conclusions of some studies:-
In India, there are 15 major studies have been undertaken during 2005 – 2008. It includes strategic issues
· For india’s water sector
· For Agricultural Marketing
· For value chain development.
All these studies objected for privatization. It had the named of “reforms” – which related or with off-repeated slogan of “Structural Reforms” of International Monetary Fund.

India and Global Finance:-
India’s corporate sector that represents one percent of the population, has a greater share of country’s income than 60% of the people who depend on farming, 77% of workers in the huge unorganized sectors earn less than 20 rupees per day. Data in 2008 show 400 wealthy persons of the country between them own wealth amount in to over 12.32 lakh crore in which 51 of them account for 31% of India’s GDP.
There is little doubt that reforms ushered in by the new world order of Liberalization, Globalization and particularly privatization has been great success in India.
World Bank and India:-
· A pertinent question has been raised in several quarter as to the need for World Bank Loans. World Bank’s lending to India in 2006- 2007 was worth US $ 3.8 billion ( on increase of 169% over the amount in the previous year) it is the highest lending by the bank to any country so far.
· In 2005 – 06 India paid a sum of Rs. 1487.3 crore as a interest to the bank. It is essential condition that one-fifth of the bank’s new soft loans are paid for repayments on past loans for this connection.
· The World Bank must keep on going soft loans to survive as its about dollar one billion yearly earning from accumulated capital is less than its administrative budge of over dollar 1.7 billion.
· The more recent trend of direct borrowings from World Bank by States with the permission from the centre should not be encouraged because of obvious reasons :
Reasons for not encouraging direct borrowings to States, By Central Government in India:-
(1) High yielding varieties (HYVs ) requiring high agro – inputs marginalizing locally adopted cultivators----
When HYVs were introduced in the country, there were in most cases location specific indigenous fully acclimatized cultivators with enough yielding potential to feed our population – which was half of what it is now. With adequate organic manures , green manures in particular, that could have boosted our productivity to sufficiently high level to feed the population. Unlike the present day commercially cultivated hybrids that require seed replacement for each sowing, the earlier HYVs were open – pollinated pure lines and mostly in the public domain, with an average seed replacement requirement of 3 or 4 years. Still there are skilled farmers in small pockets who are trying their level best to keep these varieties alive. The subsidy for the agro – inputs successfully tempted farmers to go for large scale adoption of the technology in the irrigated areas of the country. The pesticides applications in many such regions are somehow ushered in with the active support of the propesticide lobby and pesticide dealers.
(2) Technology Fatigue in Green Revolution :-
The so-called “Technology Fatigue” as an explanation of the decline of green revolution is an attempt to confuse the public on the issue – unfortunately, technology fatigue that happens in industrial technology has been equated with decline of soil fertility. Soil system and soil – water – plant relations that had been conveniently ignored by the proponents of technology fatigue. These are serious deliberate scientific lapses on the part of our agricultural research establishment.
Present Scenario of Organic Agriculture in the World and in India:-
The Foundation of Ecology and Agriculture ( SOEL ) Germany
The Research Institute of Organic Agriculture ( RIOL ), Switzerland.
International Federation of Organic Agriculture Movement ( IFOAM ).
These are the institutions which collected the world-wide information about organic farming. Ninenth edition in 2007 stated that organic agriculture under certifications being practiced in 120 countries of the world.
According to recent global survey compiled by Wilier and Ysseffi (2007 )--- area wise, Australia with 11,8 million ha. Under organic farming is the leading country followed by Argentina (3.1 million ha. ), China (2.3 million ha,) and USA ( 1.6 million ha.) , currently recording a noteworthy 30 % annual rise. In India, also, by September 2007, the total certified cultivated area under organic farming has gone up to 538171 hectors in 2006 – 07 with annual 100 % growth rate during the preceding two years.
Summary:-
The idea of second Green revolution to boost up productivity through signing of a bilateral agreement between India and USA in 2005 (known as Indian USA knowledge initiative in agriculture abbreviated as KIA ---- .The KIA would like to pave the way for further entry of US corporates in the agricultural trade and particularly a big share of India’s retail market. So World Bank and International Monetary Fund influenced right from the middle of last century to agricultural policies. Many researches starts to analyze the perfect position at world and India level. Most of analysists conclude that the global finance mostly satisfied industrialized countries’ corporate sector related with green revolution
References:-
A report of Rathindra Narayan Basu, Chairman, West Bengal State. Agri. Commission—Convocation address—17th April 2008.