Agricultural Foreign Direct Investment in India: A Case Study

Abstract

India's economy relies heavily on agriculture. Agriculture provides about 70% of the nation's food and accounts for 19% of India's GDP. Investment in agriculture is essential for promoting agricultural expansion and eradicating poverty. Investments from across the globe are necessary since national savings alone won't be enough to fund the expansion and modernization of the agricultural sector. Up to the end of 2017, foreign direct investment (FDI) in the agricultural industry reached Rs. 611.28 billion. According to the current scenario in India, 100% FDI is permitted via the simplified path, but only under the criteria outlined in the FDI policy. Foreign direct investment (FDI) is a critical factor pushing the agricultural industry toward prosperity. The increased yield and production capacity may be attributed in part to the new agricultural practices made possible by the surge of foreign investment in agriculture.