Is political instability the only reason behind inconsistent FDI inflow into India?
I would say it is one of the reasons. Foreign investors think that reforms in India are not really going on. Agriculture contributes about 25 per cent of the income generated in India. On the other hand, about 70 per cent of the total population is dependent on agriculture. Productivity in agriculture has to go up. We need structural reforms in agriculture. The average agriculture holdings are going down due to an increase in the population. Either the size of the holdings needs to be increased through cooperative farming or corporatisation of agriculture has to take place to reap the economies of scale in the farming sector. Q: Economies of scale in agriculture can be achieved only through larger land holdings which goes against the tenets of land reforms. Are the two situations compatible? Land reforms was necessary at the time of Independence. But the same land reforms are now coming in the way of increasing productivity in agriculture. All over the world agriculture holdings are in
