02-09-2007, 02:26 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->I am not sure that Pioneer editorial makes complete sense. Does agricultural growth need to match industrial growth ? <!--QuoteEnd--><!--QuoteEEnd-->
Not an expert but based on my involvement in some statistical studies
Regarding India -
68 % population lives in rural India. 80% are directly working in farm industry.
Majority of them dependent on farms, are with no saving.
Drop in agricultural growth is due to weather or wrong agricultural practices.
Low agricultural productivity will increase prices, which will affect everyone.
It will increase inflation as we are already seeing. Current inflation is due to mismanagement by finance ministry, current government and poor implementation. Situation is more or less like pre-Emergency days.
Even with high prices, farmer will not make money because majority of farmers are small farmers and they end up selling product in same price or lower to survive and to buy seed and fertilizers for next crop..
At the end, farmers or those directly depends on agriculture will suffer most. Which means 68% of Indiaâs population will hit by lightning strike twice? Rest will affected by inflation.
Only people like Amar Singh or Gandhi family who can afford 1.5 crore Bentley or fully load Land Rover for girls in farms are not effected.
Oil price is still high so is India's appetite for Oil. Iraq war is not over and Iran and US had started cold games, which may increase oil ship insurance in near future.
All this will addup.
Gullible Indians are happy what current government wants them to see.
I am more worried about sudden slow down in service sector within two years will bring chaos.
Not an expert but based on my involvement in some statistical studies
Regarding India -
68 % population lives in rural India. 80% are directly working in farm industry.
Majority of them dependent on farms, are with no saving.
Drop in agricultural growth is due to weather or wrong agricultural practices.
Low agricultural productivity will increase prices, which will affect everyone.
It will increase inflation as we are already seeing. Current inflation is due to mismanagement by finance ministry, current government and poor implementation. Situation is more or less like pre-Emergency days.
Even with high prices, farmer will not make money because majority of farmers are small farmers and they end up selling product in same price or lower to survive and to buy seed and fertilizers for next crop..
At the end, farmers or those directly depends on agriculture will suffer most. Which means 68% of Indiaâs population will hit by lightning strike twice? Rest will affected by inflation.
Only people like Amar Singh or Gandhi family who can afford 1.5 crore Bentley or fully load Land Rover for girls in farms are not effected.
Oil price is still high so is India's appetite for Oil. Iraq war is not over and Iran and US had started cold games, which may increase oil ship insurance in near future.
All this will addup.
Gullible Indians are happy what current government wants them to see.
I am more worried about sudden slow down in service sector within two years will bring chaos.