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Agricultural Growth and Regional Disparity in India: A Convergence Analysis

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  • Banerjee, Arpita
  • Kuri, Pravat Kumar

Abstract

The deceleration in growth trends in agricultural output and yield rate is a matter of great concern in recent years in India. This study makes an attempt to examine the growth performances of agricultural production and productivity of major States of India and the nature and extent of disparity in the performances of agriculture. The growth performances have been analyzed considering three distinct phases of agricultural development in India viz the first phase of green revolution 1970-71 to 1979-80, second phase of green revolution 1980-81 to 1990-91, and the period after economic reform 1991-92 to 2007-08). The agricultural infrastructural index, constructed using Principle Component Analysis, reveals the prevalence of a wide inter-state variation in agricultural infrastructure in India. Moreover, using Generalized Method of Moments (GMM) under the panel data framework, the study attempts to examine the trends of convergence/divergence of per capita value of agricultural output over the period 1970-71 to 2007-08. The results of conditional convergence establish the argument that variations in the provision of agricultural infrastructure and natural factor like rainfall play the divergent role in accruing benefits from agriculture in India. The skewed distribution of public and private investment in favour of agriculturally developed states has been found to be responsible for enhancing the disparity in agricultural infrastructure and thus, to the per capita net state domestic product across states in India.

Suggested Citation

  • Banerjee, Arpita & Kuri, Pravat Kumar, . "Agricultural Growth and Regional Disparity in India: A Convergence Analysis," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 16, pages 1-17.
    • Handle: RePEc:ags:saeasj:233666
    DOI: 10.22004/ag.econ.233666
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    References listed on IDEAS

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    3. Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, July.
    4. Mehra, Shakuntla, 1981. "Instability in Indian agriculture in the context of the new technology:," Research reports 25, International Food Policy Research Institute (IFPRI).
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    6. Ghosh, Madhusudan, 2006. "Regional Convergence in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(4), pages 1-20.
    7. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
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    Cited by:

    1. Jarmila Lazíková & Zuzana Lazíková & Ivan Takáč & Ľubica Rumanovská & Anna Bandlerová, 2019. "Technical Efficiency in the Agricultural Business—The Case of Slovakia," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    2. Mondal, Saddam Hossain, 2025. "Spatial Convergence of Foodgrains Productivity in India," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 13(4), October.

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