Indian agriculture: a big bet

Thinking of investing in India? There is one sector you may have overlooked: agriculture. With its…

Georgia (May 2, 2013) — Thinking of investing in India? There is one sector you may have overlooked: agriculture.

Publication

Link To Article

http://blogs.ft.com/beyond-brics/2013/04/16/indian-agriculture-a-big-bet/#ixzz2S94Ugsny

With its growing population, rising income levels and growing middle class, India has attracted the usual investment suspects of retail, aviation and FMCGs. But although it may not be glamorous and it may be politically complicated, India’s agricultural sector is set to expand fast….

Govind Hariharan, executive director of the India, China, America Institute, tells beyondbrics that investment is the first step for the Indian food industry, before the report’s other suggestions can be implemented.

“The appropriate infrastructure is really critical and that’s where the foreign investments will show up and have the greatest returns”, he said. “We have so much wastage in food products and all of those have to be removed before it becomes a really viable investment proposition. [The report] is jumping two steps ahead without having a platform to jump from.”

The real opportunity will arise when the Indian market is integrated with its eastern neighbours. If the proposed highway from India to China is built through Myanmar, and if India’s ports are linked to southeast Asian countries, supply chain infrastructure within India will be needed to ensure the new routes translate into new trade.

The McKinsey report may be bullish but Hariharan points out that agriculture in India is far from a simple investment: “Generally the politics involved with agriculture mean it isn’t the easiest thing to get into, for foreign companies in particular.”

In a pre-election year, it won’t be easy to open the agricultural sector to foreign investment. But if productivity, accessibility and quality are to improve, it’s a crucial step.


 

A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu

©