Desai Calls for Decentralised Agriculture and Greater R&D at Alagh Memorial Lecture

India needs to move beyond the economic reforms introduced in 1991 and adapt to emerging global challenges such as geopolitical fragmentation, trade disruptions, and changing international economic dynamics, economist Nitin Desai said during a lecture in Ahmedabad. He emphasized that while liberalization laid the foundation for economic growth, the country now requires a fresh policy framework suited to the realities of the modern global economy.

Speaking at the first Prof. Y. K. Alagh Memorial Lecture organized by the Sardar Patel Institute of Economic and Social Research (SPIESR), Desai argued that India should focus on creating a market-friendly governance system rather than merely pursuing business-friendly policies. According to him, strong institutions, effective regulation, and a competitive economic environment are essential for sustaining long-term growth and ensuring that development benefits a wider section of society.

Desai, who serves as Chairman of the Governing Council of the Energy and Resources Institute (TERI), highlighted the importance of reducing excessive dependence on government support mechanisms. He said sustained economic expansion would require greater private-sector initiative, increased innovation, and substantial investment in research and development. Strengthening state capacity, he added, remains equally important for delivering public services efficiently and supporting economic transformation.

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Addressing the manufacturing sector, Desai noted that India must enhance its competitiveness in a rapidly evolving global marketplace. He stressed that technological advancement and innovation should become central pillars of industrial policy. Increased spending on research and development, coupled with policies that encourage entrepreneurship and productivity, would help India strengthen its position as a global manufacturing hub, he said.

On agriculture, Desai advocated a more decentralized and region-specific approach rather than relying heavily on uniform national policies. He argued that agricultural development strategies should reflect local conditions and crop patterns. Moving beyond minimum support price-focused policies for wheat and rice, he suggested promoting cooperatives and encouraging diversification into sectors such as dairy production and other regionally suitable agricultural activities.

The lecture was held in memory of renowned economist Prof. Y. K. Alagh and focused on the future of India’s manufacturing and agricultural sectors. Desai’s remarks come at a time when policymakers are increasingly debating how India can sustain high growth rates while adapting to shifting global economic conditions. His call for stronger institutions, greater innovation, and decentralized development strategies adds to the ongoing discussion on the country’s long-term economic roadmap.

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