State to shift from agriculture to service sector

ved · Telugu Veera Joined: 26 Feb 2006 Posts: 2029

In the last 10 years the growth in agriculture sector is about 2% where as the service sector grew at about 6-8%. Therefore the govt thinks that service sector is better than agriculture sector. It is a fair assumption, although it is like making a full circle. It is surprising to see this coming from a govt that always used agriculture as top priority in all their policy making and politicking. However, we should commend them in accepting it and at last recognizing the limitations of agriculture sector.

In pure economic sense, the agriculture sector cannot grow more than 3-4%. It is not because of lack of monsoons or irrigation projects, but due to an invisible equilibrium between demand and supply that will tap the growth at 4%. There is already a balance between demand and supply, and as a result if the supply grows the prices are falling. We see this all the time whenever there are bumper crops, like a farmer in Chittoor giving eggplants (vankayulu) free or farmer in Srikakulam dumping all cabbage on the road side. To some extent these problems can be alleviated with better road network and better distribution of the produce, not only across the state but the country. Also right choice of crops based on better forecast models help selecting the right crop at right time. There is a long way before we address these issues. However, even with these efforts, we cannot attain a growth of 4% , unless we increase the demand significantly. The only way to increase this demand is to create vast pool of domestic consumers that are independent of agriculture. This is where the manufacturing and service sector come in.

Take China for instance. It is only after 20+ years of 10%+ growth in manufacturing/service sector, creating an enormous pool of consumers, the agriculture sector took advantage of this vast pool of consumers, and clocking a healthy growth levels of 4+%. We don’t need to follow China as we already established an alternative growth plan here. But this means, along with schemes like jala yagna, we need to put equal or more emphasis on infrastructure, the fundamental drivers for service sector. These are roads, drinking water, electricity, and communication. In education, particularly in rural areas, we need to have as many vocational and industrial training facilities, preparing them for the new industries. There has to be partnership between these training facilities and corporations. There are few examples as in pharma city and apparel park in Vizag, where young apprentices from paravada, rambilli and achyutapuram rural areas are being trained in apparel making and drug manufacturing. Coming back to infrastructure, we need to convince GAIL, ONGC and Reliance to commit the gas reserves of KG basin to power generation in our state. We need to increase the capacity of our freeways, with more alternate lanes, connecting the triangle, Hyderabad – Tirupathi – Vizag. We need to create an alternate free way or Rail system connecting our northern tribal areas , starting from Araku to Adilabad via mancherial. All this may need another Rs 40,000 crore effort, but it is worth pursuing and it is as urgent as Jala yagna.

statesman · Posted: Sun Nov 05, 2006 7:17 pm Post subject:

Shifting people form agriculture to service sector is an idea of politicians without any concrete plan to do so. Politicians who talk about this are having their eye on service tax and nothing more.

How people those who are in agriculture mostly illiterates having smaller acrage can be converted into service sector unless they have skills other than tilling. basically these sections do not have marketing skills also except to cry for increase in minimum support price every year.

All the rulers have to do so is to establish more industrial training centers may be 2-3 in each mandal and get at least younger generations of rural folks be trained various new trades, not only in fitter, welder trades. Main thrust should be given in agro industry requirements including picking raw agriculture produce to packed foods. This will reaaly help in increase of exports in this sector thus creating end less jobs. government should how ever provide all the basic needs of these trainees by providing free training with food and hostel facility.

In this connection we need to know how naturally grown prawns at vizag now a days are sold to all most all metro cities star hotels at vizag it self with more price than export price. it is great to note that all mtro based star hotels had set up their offices/agents at vizag only to purchase these prawns, pamprets/tiger prawn and paying 450-500 a kg when artificially grown sea food industry in doldrums.

Younger generation in rural areas are not averse for getting educated but in unavoidable circumsances and family problems they are sticking to villages looking after their agri farms and old parents. it is government's duty to stop these people at rural areas and provide employment oportunities in varioius fields as present ITIs are providing only welder, fitter courses and nothing more.

In this connection we also need to know welder/ fitter trades is so lucrative that is a well trained welder/fitter does not stick to our country as several middle east gulf countries are offering higher salaries, hence governmnet should also open up a gogulf offices at all ITIs and provide all the neccessary facilities and info for people to go to gulf and earn as much they can. This is the secret of kerala state. it is heartening to note that Kochi international airport has 10000 share holders mostly are NRIs settled in gulf and are from this sector only. every body laughed when kochi airport idea is expalined and now this airport built with 365 crores only has paid dividents regularly to all share holders and it is a success story of kerala. This above government intervention will also help aspirants not to fall in broker's traps/ commisions.
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STATESMAN

kumars · Telugu Kavi Joined: 14 Dec 2005 Posts: 828

then would it be possible to call our andhra as "ANNAPOORNA"
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For Better Tomorrow
Kumars

ved · Telugu Veera Joined: 26 Feb 2006 Posts: 2029

Kumars,

It doesn’t mean we should ignore Agriculture production. That would be fatal mistake for the country that has to feed 1 billion people. But we need to produce more with less, and we need to increase our demand proportional to supply. So we should continue to be Rice bowl of India.