Investment in Indian agriculture continues to lag despite rising demand and prices

A chart showing agriculture's terms of trade and share of gross fixed capital formation in India.

Despite accelerating growth in the overall economy, rising consumer demand, and supportive price and subsidy policies, growth and investment in Indian agriculture and agribusiness have remained weak since the early 1990s. There is evidence that numerous domestic policy interventions, along with weak infrastructure and limited institutional support for agricultural markets, have been a deterrent to new investment by agribusinesses and farmers. This chart may be found in the India topic on the ERS website, updated August 2011.

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