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3 even more than 8 percent after the mid-2000s) until recently. It is notable at the same time that the agricultural sector growth started to clearly lag behind the GDP growth since the 1990s, which indicates that the Indian economy was plunged into a new developmental stage after the 1990s where widening disparity between agricultural and non-agricultural (or between rural and urban) sectors is one of the major problems for the economy. Now let us look into the agricultural sector development in India by dividing the whole period from the independence to the present time into several periods. 10.0 GDP Primary Industry 8.0 6.0 % 4.0 2.0 2004-05 2002-03 2000-01 1998-99 1996-97 1994-95 1992-93 1990-91 1988-89 1986-87 1984-85 1982-83 1980-81 1978-79 1976-77 1974-75 1972-73 1970-71 1968-69 1966-67 1964-65 1962-63 1960-61 1958-59 1956-57 1954-55 -2.0 1952-53 0.0 Year Figure 1 Economic Growth Rates in India (Three Year Moving Averages) 1. Until the mid-1960s It is well known that the agricultural sector of British colonial India, especially the crop sector, was totally stagnant or even a negative growth was recorded in the entire first half of the 20th century (Blyn, 1966; Kurosaki 1999). This pattern, however, was reversed at the independence in 1947. The foodgrains (which is defined in India as cereals plus pulses) production registered a high growth in India at 4.13 percent during 1951-52 to 1960-61 on average (Kurosaki, 1999). Both the sown area expansion and the crop yield increase were contributed to the growth. However, as shown in Figure 1, the growth rate of the agricultural sector was decelerated during the period. The priority of the government‟s agricultural policy was primarily given to institutional reforms such as the land reform and the promotion of farmers‟ cooperatives. As a „socialist‟ nation India strongly promoted a heavy industrialization, especially after the second Five Year Plan (1956-57 to 1960-61), leaving the agricultural sector relatively neglected. Severe two years‟ consecutive droughts attacked India in the mid-1960s. Agriculture recorded