This book delves into a broad spectrum of issues related to capital formation in Indian agriculture. Through empirical examination, it establishes that a decline in investment, particularly public investment, is the primary cause of prolonged stagnation in the growth of Indian agriculture. It further explores the crowding-in/out hypothesis between public and private investment, revealing that public investments in various forms—such as the expansion of surface irrigation, connectivity, rural electrification, and storage—tend to induce more private investment due to their complementary nature. 

The book expresses concern over the secular decline in public investment, juxtaposed with the mounting input subsidies for fertilizers, power, credit, and irrigation. By analyzing the comparative returns from these two types of public expenditures on Indian farms, it finds that the marginal returns from public investment, in the form of Total Factor Productivity (TFP) increases, are significantly higher than those from any input subsidies, although irrigation subsidies do offer some benefits. Consequently, the book recommends a gradual rationalization of input subsidies coupled with a rapid increase in public investment. This work will be invaluable to agricultural policymakers and researchers interested in the multifaceted aspects of Indian agriculture.