Changing Inter-Sectoral Linkages: Role of Technology Adoption in Agricultural Growth

The paper has examined the changes in inter-sectoral relations as driven by the sectoral shares and sectoral growth patterns, and has traced the nature of linkages between agriculture and the rest of the economy in the changing context. The relation between use of technological inputs in agriculture and employment encompasses the socio-economic and technical links between inputs and outputs. In this context, the paper has examined by means of a case study, the role of bio-chemical technology in raising crop productivity and net incomes of farmers. Increasing output and profitability in the agriculture sector are the necessary precursors for strengthening the linkages between agriculture and the rest of the economy. The adoption of herbicide-tolerant (HT) technology has been found to reduce the cost of production through lower expenditure on herbicides, labour, machinery and fuel, despite charging of technology fees on the seeds. In this context, the paper has assessed the potential impact on agricultural productivity and net profits through the introduction of technology, viz., herbicide-tolerant (HT) cotton in sample farms across Gujarat. The findings based on secondary analysis and evidence based on a case study have categorically indicated the need for greater farm mechanization coupled with introduction of technologies that are labour saving if agricultural productivity has to be maintained and stepped up. Such an outcome would no doubt enhance agriculture-industry linkages in the production process and would also have favourable income effects giving a further boost to agriculture and industry.