Over the years the Indian economy has undergone a structural change in its sectoral composition: from a primary agro-based economy during 1970s, the economy has emerged as predominant in the service sector since the 1990s. This structural change and uneven pattern of growth of agriculture, industry and services sector in the post reforms period is likely to appear substantial changes in the production and demand linkages among various sectors, and in turn, could have significant implication for the growth and development process of the economy. This has triggered a renewed interest in studying the inter-relationship between agriculture and industry. The present paper is intended to examine the trends of interlinkages between the two sectors from a three sectoral perspectives for the pre- and post-reforms periods in India. The study observed that 'agriculture-industry' linkage has been deteriorating over the years and there has been directional change in the inter-linkages between the two sectors. Both the production and demand linkages were primarily from the industry to agriculture sector in the pre-reform period, which changed to from agriculture to industry in the post-reform period. Further, while the linkage was primarily through the production channel in the 1960s through 1980s, it translates primarily through the demand channel since 1990s.

Research report on interrelations between agricultural development and industrial development in India - based on a simulation macroeconomic model and using trend data from 1961 to 1972, discusses the linkage between the agricultural sector and industrial sector; and finds that 1 per cent increase in agricultural production leads to an increase in agricultural income and consumer demand for industrial products, thus stimulating a further 0.5 per cent increase in industrial production. Bibliography and graphs.

The inter-relationship between agriculture and industry has been a long debated issue in most of the developing countries. In the Indian context, the issue has acquired interest since the industrial stagnation of the mid 1960s. Over the years the Indian economy has undergone a structural change in its sectoral composition: from a primary agro-based economy during 1970s, the economy has emerged as predominant in the service sector since the 1990s. This structural change and uneven pattern of growth of agriculture, industry and services sector in the post reforms period is likely to appear substantial changes in the production and demand linkages among various sectors, and in turn, could have significant implication for the growth and development process of the economy. This has triggered a renewed interest in studying the inter-relationship between agriculture and industry. The present paper tries to address some of the theoretical and methodological issues in analyzing the agriculture-industry interlinkages in the Indian context.

This book provides different facets of India's agro and food processing industry in both organised and unorganised segments. It brings forth the topical issues having potential to accelerate the pace of growth in its employment, investment and productivity and strive for improving the global competitiveness. Using advanced quantitative techniques, it brings new evidences on inter-sectoral (agriculture-industry-services) employment and production linkages, contractual arrangements through Farmer Producer Companies, and subcontracting in the processed food sector. It also throws light on India's comparative advantage in export of primary and processed food products. With rising per capita income, urbanisation, and changing food habits of people, India is increasingly striving to improve productivity and competitiveness in agriculture and manufacturing. A concerted policy focus to accelerate private investment in food processing, largely viewed as a sunrise industry, is expected to contribute to large scale job creation and external trade not only in the manufacturing but also in the agricultural sector. Keeping this in mind, considerable insights are featured in the book at the industry and firm levels due to a significant bearing of technological, tariffs and non-tariff barriers and labour regulations on their trade intensity, employment and efficiency. Containing perspectives from the top agriculture and industry economists in the country, the book will be very useful to researchers, academicians, trade analysts and policy makers.

This book provides different facets of agro and food processing industry in both organised and unorganised segments and brings forth the topical ones, each having potential to accelerate the pace of growth in employment, productivity and exports-imports in a free trade regime. Using computable general equilibrium model, input output tables and advanced econometric tools, it brings new evidences on the inter-sectoral (agriculture-industry-services) linkages, and inferences to be competitive in both primary and processed food exports. India is increasingly striving to improve productivity and competitiveness in agriculture and manufacturing sectors. Taking advantage of the growing per capita income, urbanisation, changing food habits of the people and exports, a concerted policy focus has been to boost private investment in food processing, largely viewed as a sunrise industry. Higher investments and productivity growth in it are expected to contribute to large scale job creation and external trade not only in the manufacturing but also in the agricultural sector. Keeping this in mind, considerable insights are featured in the book at the industry and firm levels due to a significant bearing of technological, tariffs and non-tariff barriers on their trade intensity, productivity and efficiency. Containing perspectives from the top agro-economists in the country, the book will be very useful to researchers, trade analysts, academicians and policy makers.

This book provides a blueprint for the allocation of public expenditures “in” and “for” agriculture at the dis-aggregated state level and suggests a reorientation in favour of disadvantaged regions where the marginal returns on additional investments would be higher. It provides insights into the inter-linkages between public expenditures, private investment, rural poverty, and agriculture productivity from a regional perspective to reflect upon spatial differences in the welfare effects of various investments, subsidies, and policies. The book focuses on agricultural growth and rural poverty reduction through public and private investments, non-farm employment, and other pathways to the formulation of appropriate policies at the dis-aggregated state level. It presents new evidence based on advanced econometric tools for analysing and understanding the relationship between public and private investments in agriculture and input subsidies (fertilizer, power, irrigation, and credit) together with their impacts at the dis-aggregated state level. The book also deliberates on an income based direct support system for farmers as an alternative to the existing input price subsidy regime. Accordingly, the book offers valuable insights not only for researchers working on poverty alleviation, rural economy, and agricultural growth, but also for policymakers.

In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improvements. We estimate the contribution of productivity growth and structural change in agriculture to national productivity growth during 1981-2016. We estimate differentials in agricultural productivity and in their ability to contribute to the structural change process for 21 major states of India. Using revised employment estimates, we trace major changes during the pre-reforms (before 1991) and post-reforms periods. Results show that in the pre-reforms period, the impact of productivity improvements in agriculture on agricultural output was equated by the new workforce entering into this sector, leading to a stagnant labor productivity trend. The labor-shift from agriculture during the early years of the post-reforms period, which increased further in the next decade, has led to a consistent rise in agricultural productivity. In the absence of reforms and the associated labor shift, the productivity growth in Indian agriculture would have been much lower. A similar labor shift during the last decade has not affected agricultural output, which has risen more rapidly. This result holds true for almost all states studied. There exists a positive relation between labor-shift and agricultural output in a cluster of states. Decomposition results indicate 'within-sector' productivity growth is the major source of overall growth, with a rising contribution of 'structural change'. Studying the sources of growth across states offers new scope to achieve inter-sectoral productivity convergence.