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- As per govt data, public investment showed lower growth (11.42%) than private investment (19.81%) during 2004-05 to 2012-13.
- Currently, public and private investments are financed through two sources:
- Loans from financial institutions by individuals and govts.
- Budgetary support from the central and state govts.
- To achieve high growth in agriculture, we need to increase both public and private investments.
- Higher investment will lead to creation of backward and forward linkages, besides supporting production, processing and marketing.
- Since the Centre and states have similar schemes for financing investments, there is duplication or concentration of activities in particular areas.
- Therefore, there is a need to pool the financial resources of the central and state govts.