Indian Agribusiness and Globalisation: Prospects and Challenges

Abstract

The agricultural sector in India is undergoing a metamorphosis since the economic liberalisation of
1991-92. Globalisation’s effects in this sector are showing healthy signs of transition from inhibitive to
innovative farming and from subsistence to a sustainable one. The vast changes from traditional farming
to hi-tech agribusiness have opened new vistas for socio-economic growth and development in the
country. Globalisation of agribusiness paved way for high competition, fast technological changes,
mobility of capital and rapid dismantling of barriers in the international tradability of goods and
services. All these demand for increasing professionalism in the management of agriculture and allied
activities. Agribusiness management therefore aims at developing analytical and cognitive skills of
entrepreneurs dealing with agriculture and allied activities on individual as well as on institutional basis.
Agribusinessmen are now following better strategies and managerial techniques for value added
agriculture to improve quantitatively and qualitatively. The global character of perfectly competitive
market demands standardised products, need for reorganisation of input supply to output marketing
channels, broadening the vision of agriculture by including both on-farm and off-farm activities. The
objectives of this study include: analysis of agribusiness in India from the globalisation perspective,
identification of principal areas of agribusiness which need specialised managerial techniques, exploring
the prospects of agribusiness in the present time of globalisation, examining the challenges faced by
agribusiness in context of globalisation, suggesting measures to improve effectiveness and efficiency in
view of changing global scenario. Methodology includes various types of data collected primarily
through secondary sources. It includes information collected from studies, reports, books, articles,
periodicals and web sites, data from government, non government, national and international
organisations. The findings reveal that globalisation has caused developed a more scientific and
professional approach towards agribusiness, develop world class infrastructure, boost agricultural
growth through diversification, create employment opportunities, increase productivity, enhance quality,
better utilisation and strengthening of manpower resources. At the same time, it is not free from
challenges like inequalities in the distribution of income among countries and also within countries, loss
of national sovereignty, and differential treatment in the matter of trade agreements. Suggestive measures
include need to address the socio-economic imbalances particularly at the grass root level, facilitate
rapid innovation, reduce bureaucracy by streamlining government procedures to make them more
transparent, ensure that Indian agribusinesses are not the victims of unfair trade practices. Good
governance in agribusiness is needed to meet the risks, uncertainties and challenges and avoid further
crises. It will ensure empowerment, development of infrastructure to improve standard of living and boost
economic performance and equity in the agricultural sector.