Explain why after the initiation of reforms, the growth rate of agriculture sector decelerated to about 3% per annum during 1991-2011.

Question

Accepted Answer

During 1991-2011, the growth rate of the agriculture sector decelerated to about 3% per annum mainly due to the decline in public investment since 1991. Apart from this, factors such as inadequate infrastructure and lack of alternative employment opportunities in the industry and tertiary sectors also contributed to the slowdown. Further, the casual nature of employment increased, hindering rural development. These adverse developments led to terrible on-going distress and discontentment among farmers throughout India, and the number of suicides committed by farmers started mounting as they became victims of a debt-trap and could not come out of it. Against this background, it was high time for policy-makers to critically evaluate the pitfalls in the agriculture sector and take immediate steps to undo the damage thus inflicted.