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Sustainability Through Total Factor Productivity Growth in Agriculture Incorporating Institutional Factors: A Post-Globalized Indian Scenario
Abstract
With the increasing population pressure and food insecurity problem in India, and the problem of unsustainable social and economic systems, it was inevitable to shift away the focus of agricultural activities from the traditional system to the modern one. Having followed a series of agricultural policies in India, the role of irrigation and institutional credits cannot be denied upon the growth of output in the sector. There are some studies on the total factor productivity growth (TFPG) in Indian agriculture, but a few studies cover the role of irrigation and bank credit upon agriculture output. The present study computes TFPG out of the institutional roles through public irrigation facilities and commercial bank credit besides traditional inputs in Indian agricultural sector for the post globalized era of 1991-2019. Using the growth accounting approach, the study finds that the institutional factors such as public irrigation facilities and bank finances have contributed significantly to the growth of the agricultural output in India as the values of TFPG have increased over time.
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