INDIAN ECONOMY | Class 11 Economics Notes

2.3 AGRICULTURE

At independence, Indian agriculture suffered from low productivity and inequitable land ownership. The colonial land tenure system involved intermediaries like zamindars who collected rent without investing in land improvements, leading to exploitation and stagnation. To address this, land reforms were introduced, primarily abolishing intermediaries and implementing the 'land to the tiller' policy, which transferred ownership to actual cultivators. This was intended to provide incentives for farmers to increase productivity. Land ceiling laws were also enacted to limit maximum land ownership and reduce concentration. However, implementation faced challenges such as legal loopholes, tenant evictions, and lack of commitment in many states, with Kerala and West Bengal being exceptions. The Green Revolution marked a turning point by introducing High Yielding Variety (HYV) seeds, especially for wheat and rice, combined with fertilizers, pesticides, and irrigation. Initially benefiting affluent states and large farmers, government subsidies and loans helped small farmers adopt the technology, leading to increased food grain production and self-sufficiency. Marketed surplus increased, lowering food prices and benefiting low-income groups. Despite these gains, about 65% of the population remained in agriculture by 1990 due to limited absorption by industry and services. The debate over subsidies continues, balancing incentives for technology adoption against fiscal burdens and environmental concerns.

📊 Diagram: [figure_4] [figure_5] See figure_4: Figure on page 7 showing changes in technology used for food grains; See figure_5: consumed by the farmers themselves instead of being sold in the market, the higher output will not make much of a difference to the economy as a whole. If, on the other hand, a substantial amount of a

🧪 Activity: Visit an agricultural farm to study farming methods, costs, productivity, and income. Prepare charts comparing different farms. Collect newspaper articles on international organizations and farm subsidies for class discussion.

🔗 Connection: Leads to the study of industrial and trade policies in section 2.4.