Price Subsidies and Irrigation Investment in India-Macro Implications

in India Macro Implications D K Ratha Atul Sarma An applied general equilibrium model is used to analyse macro effects of three policy instruments, namely, fertiliser and food subsidies and investment on irrigation, for agricultural development in India. The results show that if a choice has to be made among these policy instruments, investment on irrigation has the potential of tackling two persistent problems of the Indian economy