Government Plans To Invest More On Agriculture

The Government is planning to raise investment significantly on the Agriculture sector in the coming budget 2007-08. Though the contribution of agriculture sector to the total Gross Domestic Product in India has declined, still it cannot be ignored. The sector has given larger employment opportunities in the country and has provided livelihood to more than half of total population.

For a sustainable economic growth, agriculture plays an important role. For the case of Indian Economy, for maintaining a growth rate of around 10 percent, the agricultural productivity is a must.

Keeping in view India’s much euphoric economic growth, the Government is planning for a rising productivity through public investments. In this direction the Government is to invest more on irrigation projects and creation of better agricultural infrastructure.
Apart from this, the Government is planning for a raising production in Paddy, Wheat and Pulses.

Investment on Agriculture made by the private sector in India is following a declining trend in the recent years. So for enhancing private sector investments the Government is planning for a tax concession for the private investment.