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Agricultural Growth and Economic Convergence in Indian Agriculture

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  • Kumar, Shiv
  • Lala, Kamble A.
  • Chaudhary, Khyali R.

Abstract

The benefits of agricultural growth have been concentrated in India’s richer states, leaving the poorer states lagging further behind. The convergence process of agricultural economic growth in the context of globalisation and economic liberalisation would reveal the implications for support for or withdrawal from economic reform and for further opening of the Indian economy. Evidence of absolute β-convergence in per hectare net state domestic product (NSDP) agricultural levels across Indian states reveals the tendency of states to converge to identical steady states level. Bernard Jones approach confirms that convergence is conditional. Fertiliser, public finance, small-landholdings, cropping intensity, agricultural research and education, physical infrastructure, agricultural mechanisation and diversification were the discerned factors for causing conditional convergence. The study concludes that the benefits of economic reforms started by Government of India have shown impact on the convergence process of per hectare NSDP agriculture among Indian states.

Suggested Citation

  • Kumar, Shiv & Lala, Kamble A. & Chaudhary, Khyali R., 2014. "Agricultural Growth and Economic Convergence in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 69(2), pages 1-18.
    • Handle: RePEc:ags:inijae:206377
    DOI: 10.22004/ag.econ.206377
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    References listed on IDEAS

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    Cited by:

    1. Zbigniew Golas, 2019. "Labour Productivity Growth and Convergence in Agriculture of the European Union," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 11-17.

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