Some BJP stalwarts' remarks allow a startling peek into the mindset of a section of that party. The thinking goes along the lines of pushing the agricultural sector, but without giving any further incentive to industry. These activists advocate continuation, if not, a hike in farm subsidies, and added support of cottage and small-scale industries.Such premises could bring about an unwanted interference in the industry's functioning. Before arguing on behalf of the farm sector one has to look at the respective sectors' track record. The organised sector has operated under extreme hardship over the past 50 years; licensing, controls over distribution, limited access to markets, state controlled financing and nationalisation. Little wonder that Indian industry has not been able to deliver, but is still being flogged for it. Despite this, the industry has hiked its share of GDP pie and along with service sector it mainly comprises the economic engine. On the other hand, Indian farm output is just a third of global yields, despite getting huge subsidies in the form of fertiliser and electricity. Nearly 40 per cent of all agro produce is destroyed at the farm itself, due to lack of adequate storage and other infrastructure. Farm sector subsidy is a global phenomenon, but given on output. In other words farm subsidies have to be linked with productivity.Thus, the need is not to divorce agriculture from industry or establish the supremacy of one over the other, but rather to increase industry's participation in the farm sector, to hike farm productivity.
A great drawback of the Indian agro sector is its disproportionate number of dependents. Agriculture contributes to just 25 per cent of GDP but envelopes 70 per cent of the workforce, scratching out a meagre existence. The need now is to give industry the opportunity and support to grow rapidly and provide quality jobs to these sections.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.