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Indian Economic Policy

Notes Orissa, Madhya Pradesh and eastern U.P. These states had made tremendous progress in recent
years.
However, it is important to emphasise the fact that, despite all the great claims of the Government,
none of the targets (except in oilseeds) of agricultural production was achieved during the Sixth Plan.
The Seventh Plan (1985-90), the Eighth Plan (1992-97) and the Ninth Plan (1997-2002) targeted 4 per
cent annual rate of growth and laid emphasis on specific projects in the field of agriculture. They
included a special rice production programme in the eastern region, national watershed programme
for rainfed agriculture, national oilseeds development project, social forestry, etc.
The Seventh Plan was not successful in the sense that the targets fixed for various sectors (except
cotton) were not achieved. However, the level of production at the end of the Seventh Plan was much
higher than at the beginning of the Seventh Plan.
The Eighth Plan (1992-97) was basically sound in its approach in the strategy of development and in
the targets of agricultural crops. Fortunately, weather and climate conditions were favourable and
broadly many of the targets could be fulfilled. For instance, the actual outputs in 1996-97 (the last
year of the Eighth Plan) of oilseeds, of sugar cane, of cotton and of jute were higher than the targets
for these crops in the Eighth Plan. The only exception was foodgrains - the Eighth Plan target was 210
million tonnes but the actual production was 199 million tonnes. In fact, the production of foodgrains
at 199 million tonnes was the highest output registered by India till then.
The Ninth Plan (1997-2002) was not much a success, as far as the agricultural targets were concerned.
For instance, the Ninth Plan fixed the target foodgrain production at 234 million tonnes in 2001-02
but the actual production was only 211 million tonne. The same story of under-achievement was to
be note in other sectors of agriculture also. One is again inclined to ask the question : why should the
planners unrealistic and unrealisable targets ?
Agriculture Sector Under the Tenth Plan
Growth Projection in the Tenth Plan

The Tenth Plan adopted the prescriptions of theNational Agricultural Policy, 2000 (NAP, 2000). The
Tenth Plan, particularly, emphasised the following types of growth envisaged by NAP, 2000.
(i) growth that was based on efficient use of resources and conservation the soil, water and bio
diversity of the country;
(ii) growth with equity i.e. growth which was widespread across regions and covered all farmers.
(iii) growth that was demand driven and catere to domestic markets as well as maximised benefits
from exports of agricultural products in the face of the challenges arising from economic
liberalisation and globalisation; and
(iv) growth that was sustainable technologically environmentally and economically.
The NAP, 2000 envisaged a growth rate exceeding 4 percent per annum in the agricultural sector.
The Tenth Plan also targeted a 4 per cent rate of growth. Towards this purpose, the Tenth Plan
visualised :
(a) the estimated foodgrains requirement at the end of the Tenth Plan : 230 million tonnes.
(b) the estimated supply position is expected to be between 225 and 243 million tonnes.
The Tenth Plan planned to achieve this volume of production of foodgrains through
(i) adequate thrust on maize cultivation which has good scope for increasing production of mine
cereals to 43 to 48 million tonnes; and
(ii) thrust on commercialisation of hybrid rice of a large scale and improved technologies in wheat.
Pattern of Outlay on Agriculture in the Tenth Plan

The Tenth Plan targeted 8 per cent rate of growth in GDP and accordingly, estimated the required
level of investment (at 2001-02 prices) of ` 15,92, 300 crores in the public sector - this was 67 per cent

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