Farm Sector Reforms - 2
Continuing from yesterday ( Farm Sector Reforms ) Before commenting on the three specific agriculture sector reform related bills passed by the Parliament recently, three points need to made clear: A. The farm sector in India is in dire need to major reforms. These reforms are not only critical for the farm sector alone, but for the overall economic growth of the country. The solution to most macro economic problems, e.g., large scale unemployment, dwindling household savings, volatile food inflation (and therefore unpredictability of inflation and interest rate trajectory); fiscal discipline of the governments etc would come through these reforms only. B. The recent legislative changes are intended to address only two small pieces of the entire rural sector puzzle. Land reforms and social reforms are perhaps the two bigger pieces. C. The new legislations do not seek to change the status quo materially as most the proced...