Although rising food prices remain a critical concern, finance minister Pranab Mukherjee is counting on better supply management, improved output of pulses and rice, better access to rural credit and strengthening of existing agricultural schemes to bolster India’s farm output. The rural economy employs about 60% of India’s work force, contributes about 17% of gross domestic product, and is expected to post 5.4% growth over last year, according to advanced estimates...

The new food security schemes point to the capacity of agriculture to produce more when the incentives are right. Supply of cheap foodgrains will trigger demand for other food products, which the farm sector will have to meet. The many rural development programmes in operation have complex effects on the rural economy. Programmes such as Bharat Nirman are expected to improve connectivity of markets, provide access to more efficient sources of...

The Government has included small and marginal farmers under Mahatma Gandhi NREGA by an amendment made in para 1(iv) of the list of permissible activities provided in Schedule-I of the Act. The amendment made is as follows: “Provision of irrigation facility, horticulture plantation and land development facilities to land owned by households belonging to the Schedule Castes and Schedule Tribes or below poverty line families or to beneficiaries of land...

The National Rural Employment Guarantee Act (NREGA) completed five years this month. Pandurni village, in Nanded district in Maharashtra, is in high spirits. It has won the award for best performance in implementing the Rural Employment Guarantee Scheme for 2009-10. Around 1,500 people from this village are registered under this scheme, and over 800 have benefitted from it. Yahswant Suryavanshi is one of them. This owner of two hectares of agricultural land says...

While the recent sporadic performance of the Indian manufacturing sector has justifiably evoked both concern and comment, another well-documented facet has not received commensurate attention. Organised sector manufacturing in India turned capital intensive in the 1990s and the trend continues inexorably. Research by Business Standard indicates that India Inc added over Rs 13 trillion in fixed assets over the past decade, with over 80 per cent of this accretion since...