Growth of total factor productivity in Indian agriculture

Abstract

In the present study the sources of Growth of Indian agriculture have been estimated for three sub-periods during 1950-51 to 1988-89. It also estimates the contribution of adverse weather conditions and intensity of resource use to total factor productivity growth. It is found that TFPG has contributed significantly to the acceleration of agricultural growth facilitating release of scarce resources from agriculture to other sectors in the economy. Thus, TFPG in agriculture has been the prime driving force behind the acceleration of overall growth in the Indian economy achieved during the eighties. The main determinant of TFPG has been found to be the use of modern inputs like fertilizers, HYV seeds and irrigation. It is also argued that the government policies to encourage the use of modern inputs have played a critical role in achieving the acceleration of the agricultural and hence overall growth in the economy. The agricultural input subsidies, particularly fertilizer subsidy, have been the major policy instruments inducing modernisation of Indian agriculture.