Strength and Weaknesses of Indian Agriculture Sector in the Era of Globalization

AbstractIn India, the process of globalisation has experienced many phases of ups and downs i.e. from the initial period of exceptionally high to disappointingly declining GDP after 2007-08 global financial crisis. The Government of India has opened up many sectors and areas to Foreign Direct Investment (FDI) in a gradual manner. However, agriculture sector has been exposed to Multi-national Companies (MNCs) in a restricted manner considering the threat of land grabbing as well as other technical, social and economic issues.In this paper an attempt has been made to evaluate the performance of agriculture in the pre and post globalisation period as well the impact of restrictive FDI policies on the overall growth of the agriculture sector. Anin-depth analysis has been done of the expected threats, weaknesses as well as the opportunities which can be nourished in the era of globalisation.A comparative analysis has been done of FDI policies and its impact on agriculture in other countries viz. USA, China and African countries. For empirical analysis, comparative ratio analysis and granger causality test between GDP, GCFR and FDI has been done during the period1990-2010.The paper concludes with discussion on various aspects and possible outcome of the impact of FDI and the countervailing policy of Government of India with respect to agriculture sector