BIS Review 106/2006  23  For the Indian economy to attain growth rates of 8 per cent and above, the stagnation in production of major crops and agricultural investment needs to be reversed. First, investment outlays on irrigation facilities need to be stepped up along with focus on efficient use of water resources.
In this context, appropriate pricing of power can be helpful in avoiding the excessive use of ground water. Second, given the several risks that farmers face such as future price and monsoon conditions, there is a need to put in place proper risk mitigation policies.