Balancing climate policy and development

India has aggressive renewable energy targets and industry energy efficiency policies, but faces significant infrastructure challenges, which may derail otherwise good policy. India is growing rapidly and represented 8% of the increase in global energy-related CO₂ emissions between 2000 and 2010.


These graphs show the changes in emissions, emissions drivers, and policy in the Agriculture sector in India


Emissions Emissions and land use

Land use-related emissions remained relatively flat, as did land under cultivation.


    Emissions Drivers Agricultural net exports

    Output grew to meet domestic food demand (not shown) and the export of agricultural raw materials.


      Policy Central government subsidies to agriculture

      Indian agricultural policy focused on modernization of the agricultural sector through subsidies. Though greenhouse gases were not specifically targeted in this effort, modernization had a modest effect on total emissions.

        • The Government of India’s agricultural policy between independence (1947) and 1990 was largely focused on improving the domestic production of food grains by expanding irrigation and extending incentives such as input and output price regulations.

          • Policy Barriers

            • Minimum Support Price for wheat introduced in 1966-67
              Protected farmers from commodity price fluctuations
            • Quantitative restrictions on import of agricultural commodities, specifically on pulses and edible oils, were removed during the 1980s
          • Underlying changes

            • Population increased by almost 25% by the end of decade (IMF 2011)
            • Marked agricultural growth largely due to adoption of high-yield seeds and fertilizers throughout the 1980s (Singh 2010)
            • Substantial growth and investment in rural infrastructure (Singh 2010)
        • After 1990, the focus of government policy moved toward increasing the efficiency of the agricultural sector by improving the supply chain infrastructure.

          • Policy Barriers

            • Uruguay Round Agreement on Agriculture entered into force in 1995
              Quantitative import restrictions lifted in accelerated fashion for most agricultural commodities (1997-2001)
              Removed most quantitative controls on agricultural exports during the late 1990s
              Export ban remained available for essential commodities as needed to stabilize domestic market
          • Underlying changes

            • Increasing population
            • Growth agricultural output fell from 4.8% in early 1990s to 2.5% in mid-1990s (Ministry of Agriculture 2012)
            • Mechanization of agriculture increased over decade (Ministry of Agriculture 2013)
        • Policy shifted toward sustainable development of agriculture by attracting private investment due to rising subsidy expenditure.

          • Policy Barriers

            • The National Policy on Agriculture of 2000
              Aimed at agricultural sector annual growth rate of over 4%
              Emphasized technologically, environmentally, and economically sustainable growth
              Targeted efficient resource use and conservation of soil, water, and bio-diversity
            • Policy incentives to improve sector (USDA/ERS 2012)
              Restrictions on private movement and storage of farm commodities relaxed over decade
              Taxes on processing of agricultural products reduced and simplified
            • Policy incentives to promote exports (USDA/ERS 2012)
              Restrictions on processing firms largely removed
              Import duty reductions on imported inputs to products for export
              Government support for domestic marketing and transport extended
              State marketing laws relaxed to increase private participation
            • By 2008, import tariffs reduced for many major commodities to decrease inflationary pressure on domestic market
            • Export ban on non-basmati rice in 2008 in response to global rice price 27 commodities covered under the Minimum Support Price program as of 2012
          • Underlying changes

            • 2007-2008 global food price crisis
            • Growth agricultural output fell to 2.45% by early
            • 2000s and started to recover after 2005 (Ministry of Agriculture 2012)
            • Increased mechanization of agriculture (Ministry of Agriculture 2013)
            • Population increased from 1,024.25 million in 2000 to 1,190.52 million by 2010 (IMF 2011)