Government subsidies in Indian agriculture contribute to poverty and inequality.
The article discusses government subsidies and investments in Indian agriculture, focusing on their impact on agricultural growth and poverty reduction. Initial subsidies in credit, fertilizer, and irrigation helped small farmers adopt new technologies, but continued subsidies led to inefficiency. Agricultural research, education, and rural roads are most effective in promoting growth and reducing poverty. Input and output subsidies have become unsustainable and contributed to inequality among rural states. To sustain long-term growth and reduce poverty, the government should cut subsidies and increase investments in research, infrastructure, and education. Reforming institutions is also crucial for future agricultural and rural development.