Patterns of Savings and Investment in India

Causes for Low Productivity of Indian Agriculture
The causes for low productivity of Indian agriculture can be divided into 3 broad categories, namely, (1) General factors, (2) Institutional factors and (3) Technological factors.

1. General Factors

(a) Overcrowding in Agriculture:
The increasing pressure of population on land is an important demographic factor responsible for low yield in agriculture. The area of cultivated land per cultivator has declined from 0.43 hectare in 1901 to 0.23 hectare in 1981 despite an expansion of area under cultivation. Hence, agricultural sector has become overcrowded and this has adversely affected the agricultural productivity.
(b) Discouraging Rural Atmosphere: The Indian farmers, living in rural areas are generally tradition-bound, illiterate, ignorant, superstitious and conservative. Their attitude of apathy and neglect keeps the system of cultivation primitive. The farmers are not prepared to accept anything new as a consequence of which modernization of agriculture becomes difficult.
(c) Inadequate non-firm Services:
Shortage of finance, marketing and storage facilities are also responsible for agricultural backwardness in India. The co-operatives and other institutional agencies have not been able to eliminate the village money lenders. Storage facilities for farmers are not still available to preserve their agricultural product for a better price.
(d) Natural Calamities:
Indian agriculture is a gamble in the monsoon. If monsoon becomes favorable, we have a good crop; otherwise agriculture is affected by drought, flood and cyclone.

2. Institutional Factors

(a) Size of Holding:
The small size of holdings in India is an impediment in the way of progressive agriculture. The average size of holdings in India is less than 2 hectares. In case of very small firms, it is difficult to introduce new technology. Further, due to fragmentation of holdings a great deal of labour and energy is destroyed in cultivation.
(b) Pattern of Land Tenure:
The agrarian structure in India is not conducive for a progressive agriculture. The tendril relationships were such that the big landlords used to have a considerable influence on their respective areas. The actuarial cultivator had known incentive for improvement and more production. Though the zamindari system has been abolished, absentee landlordism still prevails; heavy rents are still extracted and there is no security of tenancy. Under these circumstances, it is unwise to expect any remarkable increase in agricultural productivity due to the apathetic attitude of the tillers of the land.

3. Technological Factors

(a) Poor Technique of Production:
The technique of production adopted by Indian farmers is old, outdated and inefficient. The tradition-bound poor farmers have not yet been able to adopt the modern methods to get the best yield from their land. The seeds they use are of poor quality and the age- old, traditional wooden plough still exists in Indian agriculture. The farmers do not enjoy the benefits of agricultural research and development programmes. They consider agriculture as a way of life rather than a business proposition. Therefore, production remains at a low level.
(b) Inadequate Irrigational Facilities:
Indian agriculture is a gamble in monsoon due to non availability of irrigation facilities. In spite of several measures, irrigation has not substantially increased in India.

Measures to Improve Productivity:

The F.A.O. has suggested following measures to increase the productivity of Indian agriculture:
1. The farmers should be provided with a stable price for their agricultural products at a remunerative level.
2. There should be an expansion of adequate marketing facilities to sell the agricultural product.
3. The land tenure system should be changed in favour of the cultivator.
4. There should be a provision of cheap credit on reasonable terms especially to small farmers for better techniques of production.
5. The modern inputs like fertilisers. Pesticides and improved seeds should be made available to the farmers at reasonable prices.
6. There should be provisions of education, research and extension of agro-economic services to spread the knowledge of improved methods of farming.
7. The State should make provision for the development of resources which are not possible in the part of individual farmers e.g. large scale irrigation, land reclamation or resettlement projects.
8. There should be an extension of land used and intensification and utilisation of land already in use through improved and scientific implements.

9 most essential causes of Rural Unemployment in India

India has a large number of unemployed people. This is true of the rural as well as urban fields. In urban fields, there are a large number of educated unemployed, and in the rural areas, this is true of all the categories of people. Per-capita income in rural areas, this is true of all the categories of people. Per capita income in rural areas and particularly those engaged in agriculture does not exceed a sum of Rs. 450 per annum.

According to the report, Rural Agricultural Commission, Indian Agriculturalists are unemployed for about 6 months in a year. In rural areas, apart from the unemployed of the people, since months there are landless people who are unemployed. This number is about 10 to 50 crores. All these things go to prove that there is a good deal of unemployment in the rural areas.

There are various factors responsible for this situation. The factors, because of which there is unemployment the rural areas, may be studied under the following heads:

1) Excessive increase in population or population explosion:

In India the population is crossing all bounds. It is accepted that within 20 years or so the population of this country shall have doubled. At this rate of increase in population, no country can guarantee full employment to its hands. This is truer of the rural areas where avenues of employment are limited. Programmes of family planning attempts to restrict the increase in population have so far not yielded the desired results. This does not work well for the country.

2) Limited land and great pressure on land:

India has a limited area of agricultural land. Attempt is being made to break the barren land and bring greater area under the orbit of the agriculture. In spite of it the rapid increase in population has so far failed all the attempts of the Govt. To provide proper agricultural land to all those persons who do not have land. Apart from this there is greater pressure on the land. In rural areas most of the people depend on land for their livelihood. This creates the situation of unemployment for a large number of persons in the rural areas.

3) Seasonal nature of agriculture:

Agriculture in India is a seasonal affair. It keeps the people engaged only for a few months. After sometime the farmer have nothing to do. There is a season for sowing and harvesting. After that the farmers have no job. During this period they remain unemployed and without job. This has adverse effect on the earning of the people and the standard of living. What is needed is that for this period, the agriculturalists should be provided with some job. This would help them to earn more and employ their free time in a gainful manner.

4) Lack of subsidiary and other village industries:

We have just now seen that for at least 4 to 5 months in a year village people remain unemployed. Their standard of living can improve only when they employed this period in a gainful manner. Such a thing can happen when cottage industries and other industries pertaining to agriculture are set up in the village. So far this thing has succeeded on the other hand, the village and cottage industries have deteriorated and so large number of people still remains unemployed.

5) Too much dependence on nature:

Agriculture in India depends too much on nature particularly for irrigation. If there is lack of such at the proper moment, the crop gets a set back. If there is inclement weather at the time of harvesting, the agriculture again gets a set back. All these factors create problems of unemployment.

6) Undeveloped and traditional methods of agriculture:

In India, agriculture is carried out through traditional methods. These methods are undeveloped. They require a good deal of time and large number of hands, yet the yield is not enough as to feed a large family and also provide for their other necessities. This has an adverse effect on agricultural employment position.

7) Lack of education and ignorance about scientific and modern means of agriculture:

Agricultural people are not educated. Due to lack of education, they are not able to utilise their energy in proper manner. Apart from it they are not able to know about the scientific and modern methods of agriculture. This makes their task cumbersome and time consuming. This has also an adverse effect on employment position which requires rethinking and reconsideration.

8) Lack of adequate means of irrigation:

We have just now seen that agriculture in India very much depends on nature. There are no adequate means of irrigation. Whatever means existing are hardly sufficient to provide water to all the fields. Because of dearth of irrigation facilities the agricultural yield is not at all sufficient to help the agriculturist to live respectably. It also has an adverse effect on employment position which in its turn has an adverse effect on the standard of living.

9) Small holdings and fragmentation of land:

Agriculture in India is disorganised. We have already talked about the dearth of irrigation facilities, too much of dependence on nature and other factors. The holdings are small and they are scattered and fragmented. Because of these drawbacks, the agricultural product is not at all sufficient for the people who depend who depend on it. Apart from it the agricultural out put is not commensurate with the labour that is spent on it. This has an adverse effect on the employment position. It also adds to the poverty of the village.