 In the context of their economic effects, subsidies have been subjected to an intense debate in India in recent years.Issues like the distortionary effects of agricultural subsidies on the cropping pattern, their impact on inter-regional disparities in development, the sub-optimal use of scarce inputs like water and power induced by subsidies, and whether subsidies lead to systemic inefficiencies have been examined at length.Inadequate targeting of subsidies has especially been picked up for discussion.