Premium Essay

Indian Agri Growth 2004

In:

Submitted By mohitrakyan
Words 1034
Pages 5
wthQ1. The performance of Indian agriculture has improved for better in the years since 2004-05. Discuss the factors behind these outcomes.

Agriculture provides employment to over 50% of the workforce and the forward and backward linkages associated with its growth have a considerable effect on the incomes of the non agricultural sector. Contributing not only to the overall growth of the economy, but it's role in reducing poverty by providing employment and food security, makes it one of the most inclusive growth sectors of the Indian economy.

The deceleration in growth during the period 1997-2004, occurred in almost all the states and sub-sectors, including horticulture, livestock and fisheries where growth was expected to be high. While there was an emphasis on price factors following the economic reforms of the 1990s due to the implementation of the WTO agreement, it was at the cost of non price factors like research and extension, irrigation and credit. Aided by fluctuating rainfall, undeveloped irrigation facilities, groundwater depletion and the absence of a sign of a second green revolution along with a sharp decline in agricultural productivity in states like Punjab and Haryana gave an impression of a depressing scenario with agricultural growth, amounting to only 1.6% per annum. However there have been positive developments in the last decade with the introduction of new policies and initiatives by the government which have led to an emergence of a positive picture with growth now 3.5% per annum.

POLICIES
The turning point came with the Mid-Term Appraisal of the Tenth Five Year Plan (2002-03 to 2006-07), which reviewed the trend in agriculture and proposed steps to address the malaise. * First, the Union Budget allowed for increase in allocations for departments concerned with development and research of agriculture, animal husbandry,

Similar Documents

Premium Essay

Itc Corporate Presentation

...Cagr 95-96 to 14-15 Gross Revenue 5,115 49,965 12.7% Net Revenue 2,536 36,083 15.0% PBT 452 13,998 19.8% PAT 261 9,608 20.9% Capital Employed 1,886 32,420 16.1% ROCE % 28.4 43.4 Market Capitalisation 5,571 2,60,865 Total Shareholder Returns % 22.4% 24.3% Market Cap and TSR based on FY-end prices for FY96 and FY15 Consistent performance across time horizons Sensex (CAGR 95-96 to 14-15) : 11.8% 3 ITC’s ranking Amongst all listed private sector cos. PBT: No. 7 PAT: No. 7 Market Capitalisation: No. 3 Note: Based on Published Results for Q3 FY15, Market Capitalisation based on 31st Mar 2015 4 Awards & Accolades (1) ITC is the only Indian Company rated amongst the Top 10...

Words: 3382 - Pages: 14

Premium Essay

Itc Stretagic Managment

...India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward...

Words: 1706 - Pages: 7

Premium Essay

Miracle Economies

...Miracle Economies Introduction: India’s record GDP growth of 8.49% per year in the five-year period 2004-09 is a case of improved productivity and | growth in states trickling up and aggregating into rapid growth at the national level. The acceleration did not originate in New Delhi. It originated in the states, especially the large, poor ones, and then trickled up. We have long viewed some states like Gujarat and Maharashtra as naturally fast-growing, and others like Bihar and Uttar Pradesh as irredeemable failures. We are used to thinking of Kerala as having good social welfare without growth, and of Punjab as the main economic dynamo north of the Vindhyas. Growth of Miracle economies: India achieved record annual GDP growth, averaging 8.45%, in the five years, 2004-05 to 2008-09. Historically, the chronically poor states were Orissa plus the BIMARU quartet (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh), of which three have been sub-divided. These eight poor states participated in India’s boom. Indeed, five of India’s eight ultra-poor states have become miracle economies, defined internationally as those with over 7% growth. The best news comes from Bihar, historically the biggest failure. From 2004-05 to2008-09, Bihar averaged 11.03% growth annually. It was virtually India’s fastest growing state, on par with Gujarat (11.05%). That represents a sensational turnaround. Other poor states have done very well too. Uttrakhand (9.31%), Orissa (8.74%), Jharkhand (8.45%)...

Words: 1559 - Pages: 7

Premium Essay

Food Processing

...Coverage A pril 15, 2008 Indian Processed Food Industry Opportunities Galore Industry Overview Global Processed Food Industry Indian Processed Food Industry Processed Food Industry - A Sunrise sector Where the opportunity lies- areas for investment Industry Analysis Driving Forces Major Challenges Indian Food Processing Industry by sectors Diary Fruits and Vegetable Grains Meat and Poultry Fish Packaged/Convenience Food Aerated Soft Drinks, Packaged drinking water Exports FDI in Food Processing Government Regulation and support Regulatory framework Outlook Initiating Coverage Lakshmi Energy & Foods Ruchi Soya Analyst - Nisha Harchekar nishaharchekar@way2wealth.com Sectors - FMCG, Pharma, Entertainment WAY2WEALTH Securities Pvt. Ltd., 15/A Chander Mukhi, Nariman Point, Mumbai - 400 021. Tel: +91 22 4019 2900 email: research@way2wealth.com website: www.way2wealth.com Indian Processed Food Industry Sector Coverage Opportunities Galore Executive Summary The size of global processed food industry is estimated to be valued around US $3.6 trillion and accounts for three-fourth of the global food sales. Despite its large size, only 6% of processed foods are traded across borders compared to 16% of major bulk agricultural commodities. Indian food-processing industry is miniscule in comparison and is estimated to be US $40 billion and is likely to grow at over 10%, on the basis of an expected GDP growth rate of 8-8.5% p.a. ...

Words: 12382 - Pages: 50

Premium Essay

Itc Case Study

...Toubro Hindalco Industries 6 7 ITC 8 Grasim Industries 9 HDFC 10 3 8 New entrants in the list: IT, Financial Services & Telecom * As on 19th July 2012 4 ITC ranked 6th amongst global consumer goods companies in sustainable value creation during 2005-09 (Boston Consulting) 5 One of India’s most valuable and admired companies Ø One of the foremost in the private sector in terms of : l Sustained value creation (BT-Stern Stewart survey) l Operating profits l Cash Profits Ø Only Indian FMCG Company to feature in Forbes 2000 List l A comprehensive ranking of world’s biggest companies measured by a composite of sales, profits, assets & market value 6 Awards & Accolades (1) • ITC was awarded the prestigious ‘World Business and Development award 2012’ for its transformational rural initiatives in social and farm forestry programmes in India. It was the only Indian company to...

Words: 3625 - Pages: 15

Premium Essay

Analysis of National Income Trend Since 1950 and Inflexion Points

...contributed more than 50% to the GDP, the consumer goods industry were completely neglected. As a result the growth rate kept fluctuating during this period. 1966-80: During this period, India’s economic growth can be characterized by one word – “volatile”. The 1971 war with Pakistan, successive changes In Government in the late 1970’s and the huge drought in 1979 which affected nearly 200 million people in the agricultural sector, had a major impact on the national income. 1981-1991: In the 1980s, the businesses were able to drive efficiency and react to supply and demand incentives, the economy took off. The plan laid stress on improving the productivity level of industries by upgrading of technology. So, the national income always increased as depicted by the graph shown. Progress toward that goal was slow but steady. In the late 1980s, however, India relied on foreign borrowing to finance development plans to a greater extent than before. Trend since 1991: Economic liberalization of India began in 1991. The economic abolished license raj, reduced tariffs, removed entry-exit barriers and ended various trade barriers. The period from 1991 saw the Indian economy get integrated with global economy and the steady flow of foreign investment chipped in. The structural reforms and the stabilization measures undertaken since have had far reaching effects on the Indian economy. De-regulation, Liberalization and Globalization was able to attract international capital and modern...

Words: 829 - Pages: 4

Premium Essay

Retailing in Rural Market

...s SAJMMR: South Asian Journal of Marketing & Management Research RURAL RETAIL REVOLUTION: THE RISE OF RURAL MARKET ASHISH GUPTA* *Research Scholar, School of management Studies, Motilal Nehru National Institute of Technology, Allahabad, India. ABSTRACT “The future lies with those companies who see the poor as their customers." C. K. Prahalad Strategic Guru Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion (approximately US$34 billion). The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector15. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing". KEYWORDS: Rural India, Rural retail, rural market, Retail revolution, Kirana stores. ______________________________________________________________________________ INTRODUCTION 1. THE RETAIL REVOLUTION In this...

Words: 7474 - Pages: 30

Premium Essay

Can India Be the Food Basket of the World?

...CAN INDIA BE THE FOOD BASKET FOR THE WORLD? N.VISWANADHAM Indian School of Business Hyderabad-500032 n.viswanadham@gmail.com Abstract India can become the food supplier of the world. It has the cultivable land, all the seasons for production of all varieties of fruits and vegetables, an agribusiness system that works although it needs to be vastly improved. The single most important problem facing the Indian agricultural industry is the highly inefficient supply chain. Because of lack of cold chain infrastructure and also a food processing industry about 20 per cent of all foods produced in India (Rs. 500 b) are wasted. By building an efficient and effective supply chain using state of the art techniques it is possible to serve the population with value added food while simultaneously ensuring remunerative prices to the farmers. The surplus of cereals, fruits, vegetables, milk, fish, meat and poultry can be processed as value added food products and marketed aggressively both locally and internationally. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Strategic growth plans for achieving both national and international competitiveness of the food industry are essential. 1. OUTLINE OF THE PAPER In this paper we identify emerging opportunities in the food and cold chain...

Words: 4988 - Pages: 20

Free Essay

Foodservice Profile Malaysia

...International Markets Bureau MARKET ANALYSIS REPORT | AUGUST 2011 Foodservice Profile Malaysia Source: Shutterstock Foodservice Profile Malaysia EXECUTIVE SUMMARY Malaysia is a developing economy located in Southeast Asia. It is ideally located for export business to Indonesia, China and India, and will likely benefit from the strong economic growth predicted for these countries in the coming years. Malaysia also has a young population and increasing wealth of its own. Because of these factors, Malaysia is poised to become a major consumer of agri-food and seafood products in the near future. This growing demand for agri-food and seafood products, as well as the changing demographics and culture of the country, will likely spur growth in an already fastgrowing consumer foodservice industry. While there exist significant differences among Malaysian demographics (Malaysia is culturally diverse), there remain some common themes. Malaysia as a whole is becoming more urban, and remains characterized by a young and growing workforce. The leading sectors in the Malaysian consumer foodservice industry are the café/bar segment, the full-service restaurant segment and the fast food segment. These three segments of the foodservice market account for over half of sales in both value and volume terms. However, there are opportunities to be found in the smaller sectors of the market as well. Malaysia has a strong tourism industry and this is reflected in the large number of...

Words: 7904 - Pages: 32

Premium Essay

Driving Inclusive Growth

...Driving Inclusive Growth through Experiential   Marketing: A Retail Perspective   Mainak Kanjilal, Final Year Student, PGDIM, NITIE   Utsav Ghosh, Final Year Student, PGDIM, NITIE   Dr. Ranjan Chaudhuri, Assistant Professor (Marketing Area), NITIE         Study   based   approach   coupled   with   primary   research   has   been   done   to   arrive   at   the   conclusions.   An   analysis   of   the   different   prevalent  formats  has  been  done      and  based  on   the  findings  a  framework  has  been  proposed  for   the  business  of  retail  in  rural  India.   Literature  review:-­‐   Considerable  amount  of  research  has  gone  into   defining   the   key   influencers   of   experiential   retail   and   mechanisms   for   consumer   engagement  for  business  development.  Verhoef   et   al.   (2009)   recognize   the   importance   of   past   customer   experiences,   store   environments,   service   interfaces,   and   store   brands   on   future   experiences.     Research   on   converting   a   disinterested   consumer   into   sales   shows   that   involved   customers   likely   focus   on   key   product...

Words: 4200 - Pages: 17

Premium Essay

Itc Dividend Policy

...name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited’, where ‘ITC’ is today no longer an acronym or an initialized form. THE JOURNEY OF ITC The first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses 1925: Packaging and Printing: Backward Integration ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. 1975: Entry into the Hospitality Sector - A 'Welcome'...

Words: 2656 - Pages: 11

Premium Essay

Nature Valley

...playing an important role in contributing to the development of the economy. Food and food products are the biggest consumption category in India, with spending on food accounting for nearly 21% of India’s GDP and with a market size of USD181 billion. Domestically, the spending on food and food products constitutes the largest portion of the Indian consumer’s spending – more than a 31% share of wallet. From 2004 to 2008, there was high growth recorded in the Indian food industry, from USD141 billion to USD181 billion, a compounded annual growth rate (CAGR) of 6.4%. Going forward, the Indian domestic food market is expected to grow by nearly 40% of the current market size by 2015, to touch USD258 billion by 2015. Thanks to rising disposable incomes, the Indian overall food consumption market is forecast to climb from USD155 billion in 2005 to USD344 billion in 2025 – with compound growth at 4.1%. Growing incomes, falling poverty, changing lifestyles and companies racing to capture India’s middle and upper middle class consumers will cause the food market to evolve dramatically in the coming years. Spending on agri-products is expected to touch USD177 billion by 2015. Milk and milk products are expected to increase their overall share in spending to reach a size of USD49 billion and spending on meat and marine products is expected to touch USD32 billion by 2015. India’s snack food and snack food ingredient import market has trebled between 2002 and 2006 from USD10...

Words: 1258 - Pages: 6

Premium Essay

Indian Tobacco Company: a Strategic Analysis

...Indian Institute of Management, Lucknow ITC Ltd: A Strategic Analysis Submitted to: Prof. Arun K Jain In partial fulfillment of the requirements of the course Strategic Management I Submitted by Saurav Goswami (ABM08012) Anuj Saraf (PGP27204) Kaushal Mathur (PGP27219) Sudhanshu Chawla (PGP27255) Section “D” Group 1 Letter of Transmission TO: Prof. Arun K. Jain, Strategy Group Indian Institute of Management, Lucknow FROM: Group 1, Section D Strategic Management Class DATE: March 23, 2012 SUBJECT: Strategic Analysis of ITC Ltd. Dear Sir, You had entrusted us with a project to analyze the strategy of any company of our choice using the frameworks given in the prescribed textbook. We chose ITC Ltd. for this project as it is one of India’s oldest and most diversified companies. This report begins with analyzing the strategic direction of the company which emanates from its vision & mission statements. It then looks at the decisions that the company has taken to achieve its vision by analyzing the environment it operates, the value chain and the core competencies that it has developed over the years and the key factors instrumental in its success. We end by commenting on its future prospects based on our analysis. We are grateful to you for providing us this opportunity to learn the strategic issues in contemporary businesses and giving us the necessary guidance in completing the project. We would also like to thank the entire...

Words: 24299 - Pages: 98

Free Essay

The Tyre Industry

...The Industry: * Dominated by local players(90% of tires) * In 2006, 40 competitors with production volume 70 million tires * 4 local players alone accounted 75% of sales * Expansion of automobile mkt, production of vehicle doubled b/w 1994-2004 * Growth of 2 wheelers & 3 wheelers was high because of city dwellers * Resulting in growth in no. of tires sold 4.5 % in 2004 and 5% in 2005 Two main tire technologies * Diagonal or cross ply (created in 1950) * Easily recognised with its very high profile * In contrast, represented 65% of tire sales (value?) in India * Because of factors specific to India (emerging countries) * Variable quality of road, tendency to overload vehicles * Competitive price of Cross-ply * Long life expectancy, double of radial * Great capacity of absorption on rough terrain * But poor road holding at high speed * Strong risks of coming off the rim at high torsion and stress * Radial (Created in 1965 by Michelin) * Flat but wider * Established itself in developed countries with * Increased performance * Better adhesion * Greater resistance to torsion and friction * Sales growing slowly in India but with improvements in roads and car performance * Technological improvements were being made to cars in recent years * In 2006, radial represented 85% of car tire sales by volume (28% in 1995) * Radial...

Words: 1773 - Pages: 8

Premium Essay

Itc Report

...1. INTRODUCTION TO THE STUDY 1.1 Financial statement: A financial statement is an organized collection of data according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. It may show a position at a moment of time as in the case of a balance sheet, or may reveal a series of activities over a given period of time, as in the case of an income statement. Thus, the term financial statement generally refers to the basis statements; i) The income statement ii) The balance sheet iii) A statement of retained earnings iv) A statement of charge in financial position in addition to the above two statement. 1.2 Financial statement analysis: It is the process of identifying the financial strength and weakness of a firm from the available accounting data and financial statement. The analysis is done by properly establishing the relationship between the items of balance sheet and profit and loss account the first task of financial analyst is to determine the information relevant to the decision under consideration from the total information contained in the financial statement. The second step is to arrange information in a way to highlight significant relationship. The final step is interpretation and drawing of inferences and conclusion. Thus financial analysis is the process of selection relating and evaluation of the accounting data/information. 1.3 OBJECTIVE...

Words: 5844 - Pages: 24