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Effective Aggregate Support to Indian Agriculture

Author

Listed:
  • Mukherjee, Atri
  • D., Suganthi
  • Kumar, Rishabh
  • Bajaj, Priyanka

Abstract

To assess the aggregate level of public policy support to Indian agriculture, this paper puts together different support measures extended by central and state governments and classifies those under three categories, namely, subsidies, public investment and green box support. The aggregate support, combining all three components, remains sizeable at about 22.4 per cent of agriculture gross value added (agri-GVA) in 2020-21. There is a distinct shift in the composition, away from input subsidies and in favour of green box support, which includes direct transfer to supplement farmers' income. The effective aggregate support index constructed after assigning different weights to the three components as per their impact on agricultural growth highlights the need for greater public-sector investment to enhance the effectiveness of aggregate support for the farm sector.

Suggested Citation

  • Mukherjee, Atri & D., Suganthi & Kumar, Rishabh & Bajaj, Priyanka, 2023. "Effective Aggregate Support to Indian Agriculture," MPRA Paper 118321, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118321
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    References listed on IDEAS

    as
    1. Bathla, Seema, 2014. "Public and Private Capital Formation and Agricultural Growth in India: State Level Analysis of Inter-linkages during Pre- and Post-reform Periods," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(1).
    2. Sudha Narayanan & Nirupam Mehrotra, 2019. "Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward," Vikalpa: The Journal for Decision Makers, , vol. 44(4), pages 198-210, December.
    3. Sharma, SK & Das, A, 2018. "EU-Brazil proposal on farm support: strengthening agricultural reforms or undermining them?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(1).
    4. Sharma, S.K. & Das, A., 2018. "EU-Brazil proposal on farm support: Strengthening agricultural reforms or undermining them?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277493, International Association of Agricultural Economists.
    5. Kumar, Anjani & Singh, Dhiraj K. & Kumar, Prabhat, 2007. "Performance of Rural Credit and Factors Affecting the Choice of Credit Sources," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 62(3), pages 1-17.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agriculture; Agricultural trade; Agricultural Policy; Subsidy; public investment; green box support; index;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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