Spatial convergence and growth in Indian agriculture: 1967-2010

Abstract

Inter-state diversity has been a perennial feature of Indian agriculture. The study probes if per capita income in Indian agriculture has converged across states in the last four and a half decades. It finds strong evidence in favour of beta convergence but not in favour of sigma convergence. Spatial econometric techniques used in the study aid in identifying the impact of spatial neighbours on the growth of a state. Results indicate significant spatial dependence among states. The study also identifies the drivers of growth agriculture in the last four and a half decades and results indicate that infrastructure like roads, irrigation, electricity aid in growth and so do quality of human capital. Hence, investments targeting higher quality of infrastructure, both physical and human and efficient water management will aid in agricultural growth in India.