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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