another thing to consider in the embrace of heavily industrialized ag is the attendant displacement of rural labor which flocks to the city. i don't know much about india, but i imagine its urban centers are poorly equipped to handle massive in migration from the countryside either infrastructure wise or with respect to their economies. that, on top of the destruction of the informal economies and social networks that help people survive in the countryside would be a triple whammy on a developing state.
in the "cities and the wealth of nations" (1984) jane jacobs has good discussion about the imported technology trap - whether in ag or industry. she's doesn't cite empirical data to prove or disprove her point, but my professors have never quibbled with her points. i'd quote something from here, but don't have a scanner and don't quite have the energy to retype a page. you can find the salient points in around page 89 in the hardcover.
alex