The Hindu Business Line : Growth imperatives

Inclusive growth is the mantra policymakers are chanting. Obviously there are political worries that the benefits of the robust economic growth of the past four years are not reaching large sections of the population. Agriculture, on which depends the livelihood of about two-thirds of the population, has been for long a laggard. Wide inter-State differences in growth have accentuated regional disparities. The result: Agrarian crisis, farmer suicides, mass migration and inexorable urban poverty, in addition to continuing rural distress. Little wonder the mounting concern over growth sans equity, a powder keg that can blast the tolerance of the under-privileged and the unity of the people.

Poor governance and lack of accountability are at the core of this uneven growth story. The deliberations at the full Planning Commission meeting in New Delhi reflected the heightened realisation that the inequities arising out of the lopsided nature of growth have to be reduced substantially if not eliminated. The Prime Minister's closing remarks were telling: "Agriculture remains at the top of the priorities for our government and it should be our endeavour that the performance of this vital sector is up to the national expectation." He demanded not only long-term solutions to strengthening agriculture and allied activities but also strategies that deliver results in the short run. For closing the large yield gaps — inter-crop and -regional — region-specific policies and investment plans are needed. As the Prime Minister reiterated, the States' role in strengthening agriculture is crucial. The natural endowments are all in place — plenty of land, sunshine, water and labour. Needed is a holistic approach to replace the disjointed schemes, and to build in accountability for performance.

Be that as it may, two critical questions have to be raised: One is on investment. For providing support, where are the huge sums of money going to come from? It is not for nothing that developed countries have been spending hundreds of billions of dollars on agricultural subsidies. And, two, equally important, is how does the Government propose to tackle continued lack of scientific management of resources and of accountability for performance. The Planning Commission can at best prepare a blueprint for growth, that the National Development Council can approve. But implementation is the responsibility of the administration at both the Centre and the State level. A strong, inspired leadership to bring about an agricultural resurgence is the need of the hour. On current reckoning, the Prime Minister is best suited to take charge of the situation and provide guidance to ensure robust and sustained farm growth over the next several years. Inclusion is a winning strategy for all.