Agricultural Research and Technology Transfer by the Private Sector in India

The demand for new agricultural technology is growing in India. Since 1985 public sector investment in agricultural research in India continues to grow, but the growth rate is slowing down. With liberalization, the private sector is expected to fill the void created by slow withdrawal of the public sector. In addition, private firms can do certain activities such as commercializing and marketing new varieties more efficiently than the public sector. Thus, private sector research presents an opportunity for more growth for Asian agriculture. Along with liberalization, the new WTO regime and the major restructuring of agriculture related firms in the world have significantly changed the environment in which the Indian firms operate. It is not known how the private sector has responded to these new challenges and opportunities. This paper reviews evidence on the structure and development of the Indian agricultural sector to provide insights on the changing demand and supply conditions for agricultural input and agro-processing industries in the country. It documents the quantum and nature agricultural research and technology transfer that is going on in India to show that such activity is on the rise. Apart from other factors, the size and growth in the Indian agricultural input and food market and the liberalization of a restrictions on Indian and foreign firms that wish to invest in the food and input industries seem to have facilitated this increase. However, private sector research in agriculture is still quite inadequate and policy initiatives including those ensuring further liberalization, continued support for public research, stronger IPRs and competition policy are required to encourage it.