INVESTMENT IN AGRICULTURE SECTOR
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.
