Capital Formation and Farm Business Income in Agricuture (A Case Study of Telangana State)

Abstract

The role of Agricultural Sector in State Economy is very significant. The contribution of primary sector including Agriculture, Horticulture and Animal husbandry to the State Gross Domestic Product for the year 2011-12 is 13.60 percent. However, 56.17 percent of the working population is still dependent on Agriculture. Agriculture in Telangana is mostly dependent on rainfall. Monsoon and seasonal conditions play a major role in the Agricultural Production. In India, after independence the initial transition of agriculture towards greater efficiency was brought to be achieved through institutional and structural reforms of the major reforms that were introduced in India in this regard were land reforms, followed by the introduction of new agricultural technology to increase the efficiency of farm economy and land use. It is fact the key factor in achieving agricultural development in tropical and semi-arid countries like India are irrigation. Lack of assured irrigation facilities deters agricultural production. The available assured water is also not uniformly distributed over all the places. Lack of adequate irrigation facilities restricts the possibility of double or multiple cropping which in turn in now productivity per unit of land. Since independence much attention has been paid to the development of irrigation potential in country with allocation of increasing amount of investments in each successive five year plan.