1. PRESENTED BY: SIDDHARTH MISHRA RESEARCH SCHOLAR, DAV PG COLLEGE, VARANASI

2. Toincrease stock ofcapital and acquire competitivetechnologies; To be enabled in hiring best human resources who can make best utilization of capital and technologies;To have strong financial resources ; etc.FDI, AS AN INVESTMENT, STRENGTHENS AND FORCES AN ECONOMY TO DEVELOP. FDI IS NOT ANY SOURCE OF TRANSFER INCOME. 3. As per statistics given by Department of Industrial Policy and Promotion (DIPP), Indian corporate sector have witness an upward trend in FDI. FDI. In April- May 2013, was US$ 3.95 Billion, which was an increase of around 24.2% from the FDI of US$ 3 Billion in April- May 2012.Private equity (PE) and Venture capital (VC) firms remained bullish about Indias consumer goods and service sector. These investments increased by more than 46% in the 1st half of financial year 2013-14, with consumer companies in retail, e-commerce, consumer packagedgoods and quick service restaurants raising US$ 609.39 million through 51 deals. .continued 4. In the first 9 months of 2013 there were 377 deals, relating to mergers and acquisitions, amounting to US$ 23.9 billion (according to a survey by tax advisory firm Grant Thornton).Forex reserves of India increased by US$ 1.51 billion to touch US$ 279.24 billion for the week ended October 11, 2013 (as shown byreport of RBIs weekly statistical supplement). Indias foreign currency assets (FCA), the biggest component of the forex reserves, increased by US$ 1.52 billion to US$ 250.85 billion for the week under review. 5. SCA, the Swedish company (deals in hygiene and forest products), will be setting up a manufacturing plant in India with an investment of about US$ 23.66 million which is expected to be operational by 2015.DIPP is learnt to have granted approval to Hennes & Mauritz ABs US$ 114.24 million investment proposal for the single brand retail market.. The Cabinet Committee on Economic Affairs (CCEA) had clearedfurniture maker Ikeas US$ 1.71 billion earlier in 2013. UK based bank Williams & Glyns, which is a part of the Royal Bank of Scotland (RBS) Group, has inked US$ 413.71 million deal with IBM and Infosys wherein the Indian IT majors will build a new technology system for Williams & Glyns. .etc 6. Agriculture, and its allied services, has substantial part in Indias national income, since independence, and major job providing sector (almost50% of the population). This sector contributes a major share in countrys GDP.IT MAY BE SAID THAT AGRICULTURE FROM INDIA AND INDIA FOR AGRICULTURE, AS AGRICULTURE FORMS AN IMPORTANT IDENTITY FOR INDIA. This sector contributes a major portion in countrys GDP. This can beobserved from following tables (table A & B) 7. Financial Year1951-52Gross Domestic Product (in Rs. Cr) at 2004-05 Prices 2,86,147 (100)Agriculture & Allied Agriculture (in Rs. Services (in Rs. Cr) Cr) at 2004-05 Prices at 2004-05 Prices 1,47,216 (51.45) 1,18,877(41.54)1952-532,94,267 (100)1,51,859 (51.61)1,23,822 (42.08)1953-543,12,177 (100)1,63,553 (52.39)1,34,958 (43.23)1954-553,25,431 (100)1,68,361 (51.73)1,38,731 (42.63)1955-563,33,766 (100)1,66,906 (50.01)1,36,679 (40.95)1956-573,52,766 (100)1,75,980 (49.89)1,44,859 (41.06)1957-583,48,500 (100)1,68,075 (48.23)1,37,497 (39.45)1958-593,74,948 (100)1,85,010 (49.34)1,52,961(40.80)1959-603,83,153 (100)1,83,147 (47.80)1,50,730 (39.34)1960-614,10,279 (100)1,95,482 (46.25)1,61,708 (39.41)1961-624,23,011(100)1,95,482 (47.80)1,61,187 (38.10)FIGURES IN BRACKET REPRESENT THE PERCENTAGE AS COMPARED TO GDPTABLE A: SHARE OF AGRICULTURE AND ALLIED SERVICES IN INDIAS GDP (FROM 1951-52 TO 1961-62) 8. Financial Year 2001-02Gross Domestic Product (in Rs. Cr) at 2004-05 Prices 24,72,052 (100)Agriculture & Allied Agriculture (in Rs. Services (in Rs. Cr) Cr) at 2004-05 Prices at 2004-05 Prices 5,54,157 (22.42) 4,67,815 (18.92)2002-0325,70,690 (100)5,17,559(20.13)4,29,752(16.72)2003-0427,77,813 (100)5,64,391(20.32)4,76,324(17.15)2004-0529,71,464 (100)5,65,426(19.03)4,76,634(16.04)2005-0632,53,073 (100)5,94,487(18.27)5,02,996(15.46)2006-0735,64,364 (100)6.19,190(17.37)5,23,745(14.69)2007-0838,96,636 (100)6,55,080(16.81)5,56,956(14.29)2008-0941,58,676 (100)6,55,689(15.77)5,55,442(13.36)2009-1045,16,071 (100)6,60,987(14.64)5,57,715(12.35)2010-1149,97,006 (100)7,13,477(14.45)6,06,848(12.29)2011-1252,43,582 (100)7,39,495(14.10)6,30,540(12.02)FIGURES IN BRACKET REPRESENT THE PERCENTAGE AS COMPARED TO GDPTABLE B: SHARE OF AGRICULTURE AND ALLIED SERVICES IN INDIAS GDP (FROM 2001-02 TO 2011-12) 9. Agriculture sector has good relations with retail trading activities and also contribute to the exports (table C). A large variety of agro based products constitutes a major portion of stock in the inventory of retail traders (as categorizedin edibles, food products and also in FMCG etc.) where the retailer is small one, the small shops in the locality. Or the or at big players such as Reliance Fresh, Sahara Q shop, Subhiksha,Spancers, Big Bazar, Amul etc 10. TABLE C: SHARE OF AGRICULTURE AND ALLIED PRODUCT IN EXPORT Financial YearTotal Export (in US$ million) 103090.5Export of Agriculture and Allied Products (in US$ million) 10213.8Share of Agriculture and Allied Products in Total Export (%age) 9.902005-06 2006-07126414.112683.410.032007-08162904.318432.111.312008-09185295.017534.99.462009-10178571.417734.19.932010-11251136.224207.6.9.632011-12305963.937473.312.242012-13300570.640641.513.52 11. Agriculture sector has a good sharing in Indias GDP in various timer period (where it was 5th decade of 20th century or during 1st decade of 21st century). But the share ofthis sector has beencontinuously declining because of heavy investments that are beingmade in industrial sector and services sector as, comparatively, fast and big profits which results from these (industry and service) sectors have attracted the capital investors and labour forces of the country. Beside being an agrarian economy, India also needs to import several bulk consumption goods (cereals and cereal preparations, edible oils, pulses and sugar etc) to fulfil the demand of the population (table D). 12. Table D: Share of Bulk Consumption Goods in Import Financial YearTotal Imports (in US$ million)149166.0Imports of Bulk Consumption Products (in US$ million) 2766.6Share of Bulk Consumption Products in Total Imports (%age) 1.852005-06 2006-07185735.24294.12.312007-08251439.24600.31.822008-09303696.34975.31.632009-10288372.99012.73.122010-11369769.18854.82.392011-12489319.511654.72.382012-13491487.214219.72.89 13. FDI IN AGRICULTURAL SECTOR In India (with effect from 5th April, 2013) FDI is permitted, in order to promote private sector participation, in agriculture sector is permitted, through automatic route up to 100% in the following works:Development and production of seeds andplanting material.Services related to agro and allied sectors...continued 14. Animal husbandryPisciculture AquacultureCultivation vegetables mushroomsof &UNDER CONTROLLED CONDITIONSFloriculture Horticulture Apiculture 15. EXPECTEDBENEFITSOFFDIINAGRICULTURESECTOR: Population over 120 crores will always needs: Food ; & Income earning opportunities. Agriculture is old and most important practiced profession of the country. Alarge workforce is skilled enough to practice agriculture. But both, the workforce and investor,in huge numbers, are showingdisinterest in giving their contribution to this sector, as eagerness is showntowards industrial and service sector. ..continued 16. It is also true that a big part of countrys land (including cultivable) is being taken over industrial sector, year by year, in order to utilise and flourish the investments made in industrial sector. Home countrys investor and intellectuals do not care more about agriculture sector and hence the sector lack: Financial assistance (For e.g. credit and banking services etc) Technical assistance (For e.g. irrigation and techniques such as multi crop farming etc); & Marketing assistance (Indian farmers are good producers but not good marketers). 17. So, FDI can be better way to finance the agriculture sector and gain more investment injected, especially through private sector. Some of the benefits which FDI can provide are: FDI is expected to greatly benefit Indian farmers as a majority of them engage in small scale businesses and earn less profit; FDI can be used to propagate agriculture R&D, develop technologies for energy savings, and protect the environment, which could help increase yield. FDI along with the domestic corporate effort and investment can resolve back end issues related to modernising agricultural markets (12th Five YearPlan) FDI has an added potential to link farmers to wider markets by expanding export .continued 18. It is also not such that , in the area of agriculture, wherein, FDI is permitted, India is not having any good standing in home or at global level. In fact, India do hold an important position in producing those commodities, and FDI willincrease the exiting strength and provide good returns to the investors, for example: As per the Indian Horticulture Database (2010) given by NationalHorticulture Board (GOI), the export of output of horticulture sector have been showing increasing trend. India was the second largest producer (next to China) of the fruits in the world during 2009-10. ..continued 19. The importance of apiculture (bee-keeping) has been explained by Director of General of Employment and Training, Ministry of labour and Employment (GOI), in course curricula for modular employable skills, as India produces about 70,000 tonnes of honey every year of which 25-27,000 tonnes isexported to more than 42 countries. Even Indian flowers for example Dutch roses, are also demanded by many countries including European countries & Japan. Bangalore is considered asexport hub with much export oriented units in nearby regions. There are lots of such example regarding Indian agriculture (both- traditionally practiced and modern practices). 20. To solve the problem related to finance, technology and marketingskills, the injections of more investment through FDI, in agriculture sector will be of great help. And profit resultant by these investments can attract the Indian investor (who are able to invest presently, buthesitates to invest, and also the prospective investors) to think seriously about investing in the agriculture sector and let India be remain proud on being an agrarian economy. 21. THANK YOU FOR HEARING & SORRY FOR MISTAKES