Capital Formation for Indian Agriculture : Patterns and Determinants

This book is a product of the doctoral research work carried out by the author at Department of Economics, Panjab University, Chandigarh. The book addresses the issue of conceptualization of capital formation in Indian agriculture and focusses on construction of a "broad series" as suggested by Bhattacharya Committee in 2003. The present work focusses on the contribution of various sectors of the economy for the agricultural sector and takes into account the investment undertaken in these sectors which are meant for the agricultural sector. The book consists of seven chapters. Chapter 1 serves the purpose of introduction of the topic and details the hypotheses, objectives and chapter scheme of the book. Chapter 2 presents an issue wise review of the available literature related to the theme of the book. Chapter 3 includes a critical review of the methodology used by institutions and individual researchers to measure capital formation in agriculture. The methodology of the present study and data sources are also presented in this chapter. The empirical estimation about the growth trends at all-India and state level, sectoral growth patterns, disparities at regional and state level and convergence/divergence are discussed in chapter 4. The compositional analysis at all-India and state level has been carried out in chapter 5. This chapter also deals with the issue of diversification of capital formation in the agricultural sector in India. Chapter 6 is based on the exploration of determinants of agricultural capital formation in India. Chapter 7 brings out the main research conclusions of the chapters and policy implications. Appendices are also provided which include the data used to derive estimates presented in the chapters, the results of empirical modelling related to exploration of determinants and other data which could not be incorporated in the main text of the chapters.