Year: 2015 | Month: June | Volume 2 | Issue 1

Impact of India Economic Policies on Cotton Production vis-à-vis Comparison between Pre-Economic Liberalization Policy Period and Economic Liberalization Policy Period

Sadiq Mohammed Sanusi
DOI:10.5958/2394-8159.2015.00010.9

Abstract:

Cotton, textiles, and apparel are critical agricultural and industrial sectors in India with a significant role in the growth and development of the economy directly and indirectly given its prime position as a cash crop and export commodity. This study examined the impact of India economic policies in cotton production keeping in view the pre-liberalization policy period (1980-1989) and the economic liberalization policy period (1990-2014), viz investigation of the pattern of growth rate that marked the two critical and distinct policy in the economy of this crucial sector in India. The essence is to examine the key developments that emerged domestically and internationally during these two policy periods and the challenges and opportunities the sector faced. The empirical results showed that the sector witnessed excellent boost and performance during the period of economic liberalization as compared to what was seen during the pre-liberalization period where virtually all the key indicators that influence the performance of the sector exhibited stagnation in growth status. Excellent performance witnessed during the liberalization period is largely attributed to effective introduction of technological packages, sound economical and political policies. The impressive marginal trends in cotton production during the liberalization period was stemmed by the structural deregulation of the economy and was sustained of a very long period given that all the key indicators stimulating growth and development indicated marked acceleration growth status., while dismal marginal trend observed during the pre-liberalization period was stemmed by protectionism policy of the economy. The study recommends the need for further investments in human resource development to improve industry productivity and reduce poverty among workers in these sectors, the emergence of modern domestic retail marketing chains, and the potentially vibrant prospects for the industry that arise from a growing domestic fabric demand and new opportunities in world markets if appropriate policies and investments are undertaken. Furthermore, expansion of area currently under cotton cultivation in view adequate check on food crops to forestall danger of food security, biodiversity, agricultural crops cycle of the country in addition to agricultural extension, market liberalization, strengthening of research and networking, technology development and transfer, effective and efficient input delivery system to the farmers and guaranteed output markets is also recommended

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