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Inter-Linkages Among Agricultural Research Investment, Agricultural Productivity and Rural Poverty in India

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  • Kiresur, V.R.
  • Melinamani, V.P.
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    Abstract

    Nearly 72 per cent of India’s population and 75 per cent of the country’s poor are in rural areas. A large chunk of the Indian population still depends on agriculture for its livelihood. The level of agricultural research investment has serious implications on agricultural productivity in India which, in turn, has a bearing on rural poverty. The present study attempts to analyse the inter-linkages amongst agricultural research investment, agricultural productivity and poverty at the national level. The results revealed that rural poverty was significantly and negatively influenced by the agricultural productivity at macro level. Agricultural research investment per ha and gross cropped area influenced the productivity of agricultural sector in the country positively and significantly. Therefore, the agricultural research investment in India, which accounts for less than one per cent of the GDP in agriculture, should be increased at least to one per cent if not to two per cent, as demanded by the R&D organisations in the country from time to time. Owing to positive relationship between gross cropped area and GDP in agriculture per ha, efforts should be directed towards increasing the cropping intensity mainly through crop diversification and creating irrigation infrastructure. Low agricultural productivity is the root cause of rural poverty. Hence, an effective poverty alleviation programme should aim at increasing agricultural productivity in the long run through transfer of productive assets instead of consumer goods to the farmers.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44389.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:44389

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    Keywords: research investment; productivity; poverty; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;

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    1. Evenson, Robert E. & Pray, Carl E. & Rosegrant, Mark W., 1999. "Agricultural research and productivity growth in India:," Research reports 109, International Food Policy Research Institute (IFPRI).
    2. Fan, Shenggen, 2002. "Agricultural research and urban poverty in India:," EPTD discussion papers 94, International Food Policy Research Institute (IFPRI).
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