The Environment for Agricultural and Agribusiness Investment in India

Economic Information Bulletin No. (EIB-37) 49 pp, July 2008

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by Maurice Landes

Despite strong overall economic growth and strengthening food demand, investment in Indian agriculture and agribusiness has remained sluggish, and growth in farm output has slowed, since the early 1990s. An array of policies and regulations affecting agricultural production, marketing, and food processing-along with weak infrastructure and a lack of market services-have discouraged private investment by farmers and large, vertically integrated agribusinesses. The policy environment has grown more investor friendly since the late 1990s and private investment appears to be responding, but significant barriers remain and the pace of future reforms remains uncertain.

Keywords: India, agriculture, agribusiness, investment, trade policy, domestic policy, infrastructure

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