Union Budget 2010 and Indian Agrarian Crisis: Issues and Initiatives

Abstract

Agricultural sector in India is passing through a crucial and decisive phase as it coincides with globalization, economic liberalization and new international economic integrations. Ironically this phase has been marked by decrease in public investment in irrigation and infrastructure, lack of sound credit facilities and crop insurance schemes, farmers quitting farming, decline in agricultural production, weakening of the public distribution system and adverse climatic variations due to the global warming. All these have resulted in the slow and uneven growth of agriculture when compared to other sectors of Indian economy. Thus on one hand there is tremendous optimism and euphoria associated with the economic restructuring and reengineering of the Indian economy on the other hand the Indian agriculture is in the doldrums and it portrays a gloomy and sad picture. Budgetary allocation is an important tool which can revitalize and resurrect the Indian Agriculture sector. This article delves into the problem areas of Indian Agriculture particularly relating to rural indebtedness and financial exclusion. It also analyses the impact of budgetary allocations on agriculture growth in the long run with specific emphasis on Union Budget 2010.