Agricultural growth, rural poverty and environmental degradation in India

This book studies agricultural growth, rural poverty, environmental degradation, and participatory rural institutions in India as a series of closely interrelated processes, and examines the implications for development strategy and policy in the context of the ongoing economic reforms.

Dr Hanumantha Rao observes that an encouraging feature of agricultural growth during the eighties has been its spread to the regions and crops that had hitherto lagged behind, resulting in a rise in real wages and decline in rural poverty in the less developed regions. The most disquieting feature has, however, been the decline in real public investment in agriculture, especially in irrigation, due to the paucity of resources caused by mounting subsidies.

In his study of the poverty alleviation programmes, the author finds that even though the poorest of the poor are relatively efficient in utilizing the assistance they receive, the schemes themselves are heavily dependent on the bureaucracy, leading to inefficiencies and

leakages. Environmental degradation is attributed to the slow rate of land-augmenting technological change and the inequitable distribution of gains resulting in pressure on the environment from the

poor as well as the affluent.

On account of the low rate of capital formation

and relatively efficient use of available resources, the author sees little scope for raising agricultural output in India merely by freeing the markets. On the basis of his study, Dr Rao recommends stepping up public investment in agriculture, especially in irrigation and research, as essential to raise the growth rate, and to realize the possible gains from trade as well as to ensure the equitable sharing of such gains. This is a book which will provide the reader with valuable insights into the Indian agricultural scene.