ABSTRACT
In response to the crisis, the Indian political economy underwent a swift reversal of sectoral priorities. In 1979 India suffered one of the worst droughts of the twentieth century, yet there was no massive food importation or starvation. The practices involved in the Green Revolution required financial outlays on a scale that was unprecedented in Indian agriculture, both in aggregate terms and in terms of the capital needs of the average cultivator. In contrast, between 1965 and 1976, gross profits never exceeded 11.4% of sales for the industrial public limited companies studied by the Reserve Bank of India. In the Indian situation the supplies and prices of agricultural commodities, particularly of food, play a crucial role in attaining stability. The main features in the evolution of the property regime during the alliance were the growth and development of the foodgrains procurement, grain storage, and price support systems, and the nationalization of banks.
