It seems the wisest of investments: the world demands Indian agriculture, relying on its farms and forests to supply the necessary products. There has been a proven stability with the choice, an assurance that exporting will always be a viable alternative. Few companies hesitate when considering this. Fewer still will even admit that the perfection could one day end. It’s believed that this is one of the rare situations that offers infinite potential and no risks.
The truth, however, is quite different.
While there is undeniable sense in investing with agriculture (Indian economics are carved from it, with almost half of the market generated from farming), there is also caution to be found. Two possible errors can occur when selecting this field and each can be damning in their concerns.
One: The growth of a populace. Much has been praised for India’s ever changing population. The workforce has never been so filled, allowing for new jobs and better skills to occur. But this same workforce must eat and this then requires agricultural efforts to be given to the nation itself instead of exporting. And, with the number f individuals reaching staggering heights, the ability to produce enough product has become difficult. The expectations cannot be matched – especially in the areas of wheat and rice. This can lead to reducing trade later on.
Two: Lack of stimulus. Though the Indian economy has proven itself to be impressive within these last decades, there has been an alarming trend toward stagnation within agriculture. While the country remains among the most active producers, its numbers have stagnated. There is no burst of energy within the market. There is instead only the flat success. This can be an issue for those seeking to form greater profits.
Agriculture is a wise investment. This cannot be disputed. There can be no denying the possible complications, however, that can arise in the future. These must be understood and anticipated.