Capturing Trends and Patterns of FDI in Agricultural Sector,Agricultural Production, Employment, Income and Trade in Indiain an Econometric Framework

Abstract

Foreign Direct Investment(FDI) in developing economies in general and Indian economy in particular acted as a crucial pillar of growth. It acts as a leading indicator to spur employment, Income, capital expenditure, technological knowhow and demand. Henceforth the government has taken several reforms via FDI in various sectors, to get rid from the vicious circle of recession. On the other hand, the structure of Indian economy is highly dependent on the agricultural sector. The backward integration of the manufacturing and service sector in the agricultural sector is significantly high. This makes the sector prominent and considered as a key sector in generating employment, income and exports. The study captures the trends and patterns of FDI in the agricultural sector, since 1991 to 2020. The motive of the study is to prepare a background work of the mega study on FDI in the agricultural sector and its impact on various macro variables. Henceforth, the study has done preliminary study on capturing the trend and patterns of FDI in the agricultural sector, agricultural productivity, employment, income and trade in an econometric based growth model.