The performance of Agriculture in India is important as the sector not only contributes to overall growth of the economy but also provides employment and food security to majority of the population in the country. The 11th and 12th Five Year Plans also indicate that agricultural development is an important component of inclusive growth approach. There are three goals of agricultural development. These are: (a) achieve 4 per cent growth in agriculture and raise incomes by increasing productivity (land, labor), diversification to high value agriculture and rural non-farm by maintaining food security; (b) sharing growth (equity) by focusing on small and marginal farmers, lagging regions, women etc.; (c) third is to maintain sustainability of agriculture by focusing on environmental concerns. What are the policies needed to achieve the above goals? There are basically seven factors which need attention in the short and medium terms. These are: (a) price policy; (b) subisidies and investments; (c) land issues; (d) irrigation and water management (e) research and extension; (f) credit; (g) domestic market reforms and diversification. Institutions have to be developed in all these aspects. There are also emerging issues like climate change and agriculture-nutrition linkages.