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Listening Window Odisha Knowledge Hub Lecture Series 25

the corresponding periods, poverty rate reduced three
times in the period 2004-11 when compared with the
period 1993 – 2004. This clearly points to a correlation
between reduction in poverty and agricultural
growth. If agriculture grows faster, poverty goes down
significantly.

Narrating about the global perspective, he gave
example of China as a country. During 1978-84, China
started its economic reforms by investing and putting
emphasis on agriculture instead of manufacturing or
service industry. They liberated agricultural prices while
shifting away from the commune system to household
system. As a result, the agricultural GDP grew at a rate
of 7.1% per annum and farm income increased by
14% per annum. Thus China reduced poverty by 5%
in those six years. It took eighteen years from 1993-
2011, for India to achieve the same rate of poverty
reduction achieved by China. This fast rate of poverty
reduction in China induced increased demands for
industrial goods that in turn fuelled China’s robust
manufacturing industry growth thereby bringing a
revolution in manufacturing industry.

On the contrary, the Indian scenario functions
differently, where the service sector has been given
priority with a top down approach and information
and technology forms the base of the growth pyramid
while agriculture barely gets any attention.

In giving solutions to achieve a turnaround in the
agricultural sector, emphasis should be given to