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Investment, subsidies, and pro‐poor growth in rural India
Author(s) -
Fan Shenggen,
Gulati Ashok,
Thorat Sukhadeo
Publication year - 2008
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2008.00328.x
Subject(s) - subsidy , agriculture , economics , investment (military) , green revolution , government (linguistics) , poverty , agricultural economics , rural poverty , economic growth , public economics , natural resource economics , business , market economy , politics , ecology , linguistics , philosophy , political science , biology , law
This article reviews the trends in government subsidies and investments in and for Indian agriculture; develops a conceptual framework and a model to assess the impact of various subsidies and investments on agricultural growth and poverty reduction; and presents reform options with regard to re‐prioritizing government spending. Subsidies in credit, fertilizer, and irrigation have been crucial for small farmers to adopt new technologies particularly during the initial stage of the green revolution in the late 1960s and 1970s. But it is now investments in agricultural research, education, and rural roads that are the three most effective public spending items in promoting agricultural growth and reducing poverty.