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 Rajasthan's economy based on agriculture
  Rajasthan's economy is based on agriculture and animal husbandry. Agriculture accounted for 50% of net state domestic product in 1988/89. Nearly 69% of those in the work force depend on agriculture and work as cultivators or agricultural labourers. Crop yields are generally low, and the further growth of agriculture is constrained by a lack of water and access to it, as nearly 60% of the region is arid. Even outside the arid region, agriculture depends on rainfall, which in most parts of Rajasthan is minimal and irregular. Only 24% of the cropped area is under irrigation, and only half of the irrigation potential is being used (CMIE 1994).

    Thar desert      Khejari tree

   The state has a lower population density, at 128 persons/km2 (in 1991),  than the country does, with 267 persons/km2. The average size of agricultural holdings, 4.34 ha, is much larger than the national average of 1.68 ha. A much larger proportion of the cultivators in Rajasthan are owner operators. Thirty-four percent of the population lives below the poverty line . Although this is below the national average (39%), it poses a significant development challenge to Rajasthan, given the low productivity of land and limited availability of water.   
  The State of Rajasthan is divided into two geographical regions: The Aravalli hills Range, traversing the state from northwest to southeast, acts as a sharp divide; the region west of Aravali is the extension of the Thar Desert. IGNP is in this latter region. This mostly arid and partly semiarid region is sparsely populated, but the density of livestock is very high. The crop yields are low and show sharp year-to-year variation. From the southeast to the northwest in this region, the agro climatic conditions become progressively harsher. In the part covered by stage II of IGNP, the aridity is highly pronounced. The landscape is dotted with numerous sand dunes. Many of these shift from place to place with the brisk winds of the desert, leading to desertification of the adjoining areas. This region is also characterized by extremes of climate, erratic rainfall, and high rate of evaporation,  transpiration and is subject to recurring droughts.

 Agricultural-development policy  
  Rajasthan has undertaken several measures for agricultural development, with expansion of irrigation being the most important of these. The Indus Water Treaty settled the long-standing dispute between India and Pakistan about sharing the waters of the Punjab rivers. The waters of three eastern rivers  Ravi, Bias, and Sutlej  were allotted to India. From Indias (annual) share of water, Rajasthan got 8.60 million acre 8211;feet (MAF; 1 acre 8211;foot = 1.33 ha 8211;m). The Government of Rajasthan decided to use 7.59 MAF in the construction of the Indira Gandhi canel   The remaining water in Rajasthan 8217;s share is used for the Bhakra and other irrigation systems. Of the total water supplies in IGNP, 6.72 MAF is earmarked for irrigation 0.87 MAF, for drinking water and industrial use in the command and adjoining areas.
  In 1956, the end of the First Five-Year Plan, only 12.7% of the gross cropped area in the state was irrigated. By 1990, the end of the Seventh Five-Year Plan, the proportion had increased to 24.9% (GOR 1992), mainly as a result of IGNP. At the same time, Rajasthan adopted a high-yielding-varieties program as part of its agricultural strategy.

 

   Other developmental measures included investment in agricultural infrastructure and marketing, increased credit, improved research capability, and increased input supplies. Such measures led to a growth in agricultural output of 4.68% per year during 1980. The governments development strategy for the area covered by stage II of IGNP had two aims: irrigation development and human settlement. Stage I of IGNP primarily provided the rationale for this strategy. Physical and demographic conditions in the stage I districts, Ganganagar and Bikaner, were more or less similar to those prevailing in the stage II area. With the introduction of irrigation and planned human settlement, the economy of the area under stage I of IGNP had undergone a remarkable change (WAPCOS 1992b). It was assumed, therefore, that these two components of development strategy would yield similar results in the stage II area.
  However, people in some quarters raised serious doubts about the suit-ability of the arid lands, termed  fragile lands for intensive agriculture and challenged the use of irrigation on these  lands, on the grounds that the light sandy soils of the desert may be unsuitable for irrigated farming or for any type of intensive cultivation. Also, large parts of the region have hardpan at shallow depths. Irrigated farming under these conditions increases the risk of soil erosion, desertification, water logging, and salinization . These objections were overruled by the state government. It pointed out that improvement in the vegetation cover and the extension of afforestation (which would be possible with the supply of water assured through irrigation) would stabilize sand dunes and halt the process of desertification. Similarly, the occurrences of hardpan at shallow depths would call for a more judicious use of water, which was seen as a blessing in disguise.

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