India is the seventh largest and second most populous country in the
world. Agriculture sector has an important role in the economic
development of India as a large size of its population lives in rural
areas. It is a major source of livelihood for millions of people in
India. Approximately 58.4 percent of the people depend on agriculture
either directly or indirectly. Agriculture growth rate is at 1.6 percent
total food grain production at232.07 million ton in 2010-11. Agriculture
sector contributed 15.7 (in 2008-09) to India's GDP and 10.59 India's
exports in 2009-10. Economic liberalization policies as well as the
globalization process are also exerting strong pressures on the area
allocation decision of farmers, essentially through their impact on the
relative prices of inputs and outputs. Although the factors that
influence the area allocation decision of farmers are all important,
they obviously differ in terms of the relative importance both across
farm groups and resource regions. While factor such as food and fodder
self-sufficiency, farm size, and investment constraints are important in
influencing the area allocation pattern.