GLOBALIZATION AND ITS IMPACT ON AGRICULTURE IN INDIA

Abstract

The concept of globalization was introduced in the Indian economy in July 1991. Globalization is a term used to describe the increasing connectedness and interdependence of world cultures and economies.The importance of agriculture sector in the process of economic development is Indispensable, especially in a country like India. Indian planners have emphasized on the development of agricultural and allied sector right from the beginning of the economic planning process in India. But situation changed when following the macro economic reforms introduced in the Indian economy in the early 1990s, and the reforms in the multilateral trading order brought about in the wake of GATT negotiations and setting up of WTO, the Indian agriculture has entered in to the phase of globalization and diversification. At that time it was expected that the effect of globalisation would result in a much larger integration of the Indian economy with the rest of the world, and such a scenario would bring about substantial benefits to the Indian farmers. Globalization policies during the 1980s and particularly during 1990s and beyond have created many challenges for agriculture. However these challenges are accompanied by some opportunities also. Opportunities exist for deriving large benefits through substantial increase in agricultural exports, especially exports of high-value labour-intensive agricultural products. One the other end, the challenges lie in exposure of domestic agriculture to international competition, growth of non-agricultural sector and its impact on demand for agricultural products, urban middle class life-style Globalization can upgrade agribusiness jobs enormously as a development motor in nations with low pay by growing horticulture quicker than homegrown utilization.