Agricultural Growth Productivity And Change In India

In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improvements. We estimate the contribution of productivity growth and structural change in agriculture to national productivity growth during 1981-2016. We estimate differentials in agricultural productivity and in their ability to contribute to the structural change process for 21 major states of India. Using revised employment estimates, we trace major changes during the pre-reforms (before 1991) and post-reforms periods. Results show that in the pre-reforms period, the impact of productivity improvements in agriculture on agricultural output was equated by the new workforce entering into this sector, leading to a stagnant labor productivity trend. The labor-shift from agriculture during the early years of the post-reforms period, which increased further in the next decade, has led to a consistent rise in agricultural productivity. In the absence of reforms and the associated labor shift, the productivity growth in Indian agriculture would have been much lower. A similar labor shift during the last decade has not affected agricultural output, which has risen more rapidly. This result holds true for almost all states studied. There exists a positive relation between labor-shift and agricultural output in a cluster of states. Decomposition results indicate ‘within-sector’ productivity growth is the major source of overall growth, with a rising contribution of ‘structural change’. Studying the sources of growth across states offers new scope to achieve inter-sectoral productivity convergence.

Agricultural yields have increased steadily in the last half century, particularly since the Green Revolution. At the same time, inflation-adjusted agricultural commodity prices have been trending downward as increases in supply outpace the growth of demand. Recent severe weather events, biofuel mandates, and a switch toward a more meat-heavy diet in emerging economies have nevertheless boosted commodity prices. Whether this is a temporary jump or the beginning of a longer-term trend is an open question. Agricultural Productivity and Producer Behavior examines the factors contributing to the remarkably steady increase in global yields and assesses whether yield growth can continue. This research also considers whether agricultural productivity growth has been, and will be, associated with significant environmental externalities. Among the topics studied are genetically modified crops; changing climatic factors; farm production responses to government regulations including crop insurance, transport subsidies, and electricity subsidies for groundwater extraction; and the role of specific farm practices such as crop diversification, disease management, and water-saving methods. This research provides new evidence that technological as well as policy choices influence agricultural productivity.

Agriculture productivity, growth and regional change in post-colonial India from a spatial perspective are yet to be rigorously examined. In particular, the impacts of economic liberalisation, globalisation and deregulation are not being empirically investigated at a small-area level using advanced statistical and spatial techniques. Understanding the process of regional formation and the rapid transitioning of agricultural landscapes in the Post-Liberalisation phase is pivotal to developing and devising regional economic development strategies. This book employs advanced methods to empirically examine the key characteristics and patterns of regional change in agricultural growth and productivity. It offers insights on changes in agricultural production and practices since the colonial period through to the Post-Liberalisation phase in India. It also incorporates the key public policy debates on the progress of India’s agricultural development with the aim of formulating spatially integrated strategies to reduce rapid rise in the regional convergence and to promote equitable distribution of strategic government investment.

Contributed articles on economic aspects of agriculture in India.

In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improvements. We estimate the contribution of productivity growth and structural change in agriculture to national productivity growth during 1981-2016. We estimate differentials in agricultural productivity and in their ability to contribute to the structural change process for 21 major states of India. Using revised employment estimates, we trace major changes during the pre-reforms (before 1991) and post-reforms periods. Results show that in the pre-reforms period, the impact of productivity improvements in agriculture on agricultural output was equated by the new workforce entering into this sector, leading to a stagnant labor productivity trend. The labor-shift from agriculture during the early years of the post-reforms period, which increased further in the next decade, has led to a consistent rise in agricultural productivity. In the absence of reforms and the associated labor shift, the productivity growth in Indian agriculture would have been much lower. A similar labor shift during the last decade has not affected agricultural output, which has risen more rapidly. This result holds true for almost all states studied. There exists a positive relation between labor-shift and agricultural output in a cluster of states. Decomposition results indicate 'within-sector' productivity growth is the major source of overall growth, with a rising contribution of 'structural change'. Studying the sources of growth across states offers new scope to achieve inter-sectoral productivity convergence.

Research report on interrelations between agricultural development and industrial development in India - based on a simulation macroeconomic model and using trend data from 1961 to 1972, discusses the linkage between the agricultural sector and industrial sector; and finds that 1 per cent increase in agricultural production leads to an increase in agricultural income and consumer demand for industrial products, thus stimulating a further 0.5 per cent increase in industrial production. Bibliography and graphs.

Agriculture productivity, growth and regional change in post-colonial India from a spatial perspective are yet to be rigorously examined. In particular, the impacts of economic liberalisation, globalisation and deregulation are not being empirically investigated at a small-area level using advanced statistical and spatial techniques. Understanding the process of regional formation and the rapid transitioning of agricultural landscapes in the Post-Liberalisation phase is pivotal to developing and devising regional economic development strategies. This book employs advanced methods to empirically examine the key characteristics and patterns of regional change in agricultural growth and productivity. It offers insights on changes in agricultural production and practices since the colonial period through to the Post-Liberalisation phase in India. It also incorporates the key public policy debates on the progress of India's agricultural development with the aim of formulating spatially integrated strategies to reduce rapid rise in the regional convergence and to promote equitable distribution of strategic government investment.

Investment in productivity: the research system, technology transfer, extension, and infrastructure; The development and spread of modern crop varieties; Total factor productivity in the indian crop sector; Sources for the growth of total factor productivity in indian agriculture; Conclusions and policy implications.

This book sets out to investigate the process of agrarian change from new angles and with new results. It starts on firm ground rather than from abstract economic theory. Upon its initial appearance, it was heralded as "a small masterpiece, which economic historians should read--and not simply quote"--Giovanni Frederico, Economic History Services. The Conditions of Agricultural Growth remains a breakthrough in the theory of agricultural development. In linking ethnography with economy, developmental studies reached new heights. Whereas "development" had been seen previously as the transformation of traditional communities by the introduction (or imposition) of new technologies, Ester Boserup argues that changes and improvements occur from within agricultural communities, and that improvements are governed not simply by external interference, but by those communities themselves Using extensive analyses of the costs and productivity of the main systems of traditional agriculture, Ester Boserup concludes that technical, economic, and social changes are unlikely to take place unless the community concerned is exposed to the pressure of population growth.

India’s recent performance in agriculture has been favorable, with agricultural production growing over the past 30 years. Yet there is widespread consensus that, relative to the rest of the economy, agriculture is lagging and that it can and must do much better to support india’s overall high economic growth and dynamism. This book explores the future and presents the audacious question: what could the agricultural sector in India look like 30 years from now and how should it look if it is to successfully meet the needs of the country’s affluent society? In order to address this question, this book proposes a set of recommendations that should be implemented on a priority basis. These recommendations are as follows: (i) make public programs much more focused and effective; (ii) recognize water as a critical, long-term constraint to India’s agricultural growth and give top priority to significantly improving the efficiency of water use; (iii) promote new high-yield seeds and related technologies, including mechanization, to improve yields and productivity; (iv) improve the effectiveness of agricultural research and extension; (v) support further improvements of the farm-to-market value chain and reduce spoilage; and (vi) improve markets and incentives related to agriculture through reforms of prices, trade, and subsidies. The vision of what India’s economy in 2040 should and can look like, with an affluent and modern agricultural sector, will require fundamental changes in both the demand and supply sides of Indian agriculture. The vision is based not on projections but on how India’s agricultural sector needs to adapt to match the economy’s progress as a whole. This vision is plausible but it is by no means certain.