The Impact of Foreign Direct Investment on Indian Agriculture

Sunil Kumari, Preeti Devi
Agriculture plays an important role in economic development of India. The contribution of agricultural sector to national Gross Domestic Product (GDP) has continued to decline over the years, while that of other sectors. Presently, agriculture contributes 19% per cent of India's Gross Domestic Product (GDP). Agriculture is the main part of the Indian economy as it forms the backbone of rural India which inhabitants more than 70% of total Indian population. Most of the rural population in India
more » ... epends on agricultural sectors for employment and livelihood. 100% FDI is also permitted in tea sector, FDI is not allowed in any other agricultural sector/ activity. The present study is based on secondary data collected through different sources. The objective of the present study is to analyze the foreign direct investment on Indian agriculture. The paper focuses on the FDI and agriculture sector in Indian economy and compares the FDI in agriculture sector with other sectors in India. This paper also tries to find out the scenario and impact of Foreign Direct Investment on Indian agriculture. It also shows that there has been a remarkable increase in FDI inflows in agriculture sector in India during the year 2000 to 2015.