Agriculture Industry –Regional variations in input and output in these sectors

• Agriculture

• Industry – Regional variations in input and output in these

sectors

Regional Patterns in Agriculture Levels and Growth of O utput Major 43 Crops (at 1990-93 Constant Prices)

1962-65 1970-73 1980-83 1992-95 (A) (B) ( C) (D)Haryana 16303.27 23444.90 31555.32 54992.26 4.65 3.02 4.74 4.14Himachal Pradesh 2487.94 3233.31 3556.61 4615.92 3.33 0.96 2.20 2.08Jammu and Kashmir2428.39 3690.43 5191.71 5400.74 5.37 3.47 0.33 2.70Punjab 22078.87 36897.73 58654.10 92549.04 6.63 4.74 3.87 4.89Uttar Pradesh 93627.51 114460.68 150372.86 210249.47 2.54 2.77 2.83 2.73

North-west region136925.97 181727.06 249330.60 367807.43 3.60 3.21 3.29 3.35Assam 15038.60 17419.20 22964.29 29653.92 1.85 2.80 2.15 2.29Bihar 39332.22 42992.89 41275.92 52833.26 1.12 -0.41 2.08 0.99Orissa 24391.37 26389.44 34267.97 39316.62 0.99 2.65 1.15 1.60West Bengal 32535.94 39230.06 41979.78 78813.53 2.37 0.68 5.39 2.99Eastern region111298.14 126031.59 140487.96 200617.34 1.57 1.09 3.01 1.98Gujarat 33174.29 38208.81 51959.23 65591.11 1.78 3.12 1.96 2.30Madhya Pradesh48072.93 56214.33 63846.36 110907.96 1.97 1.28 4.71 2.83Maharashtra 52069.34 38697.71 73149.00 102677.41 -3.64 6.57 2.87 2.29Rajasthan 24153.65 33787.85 38276.32 68884.69 4.29 1.26 5.02 3.56Central Region157470.21 166908.69 227230.91 348061.17 0.73 3.13 3.62 2.68Andhra Pradesh49877.56 53717.65 76565.78 110201.62 0.93 3.61 3.08 2.68Karnataka 33176.34 40854.31 51372.41 81473.82 2.64 2.32 3.92 3.04Kerala 25168.76 34678.10 31651.54 41296.50 4.09 -0.91 2.24 1.66Tamil Nadu 47006.87 58441.34 55208.95 94652.60 2.76 -0.57 4.59 2.36Southern region155229.52 187691.39 214798.67 327624.53 2.40 1.36 3.58 2.52All India 565642.79 666706.42 843474.10 1260430.47 2.08 2.38 3.40 2.71C V (percentage) 85.46 86.43 45.30 34.17

StateAverage Value of Output (Rs Million) Per Cent Annual Compound Growth Rate*

Regional Patterns in Agriculture

Incremental Value of Output and Its Per Cent Contribution by States and Regions during 1962-65,1970-73,1980-83 and 1992-95

1970s Over 1960s 1980s Over 1970s1990s Over1980s 1990s Over 1960sHaryana 16303.27 7.07 4.59 5.62 5.57Himachal Pradesh 2487.94 0.74 0.18 0.25 0.31Jammu and Kashmir 2428.39 1.25 0.85 0.05 0.43Punjab 22078.87 14.66 12.31 8.13 10.14Uttar Pradesh 93627.51 20.61 20.32 14.36 16.79North-west region 136925.97 44.33 38.24 28.41 33.23Assam 15038.60 2.36 3.14 1.60 2.10Bihar 39332.22 3.62 -0.97 2.77 1.94Orissa 24391.37 1.98 4.46 1.21 2.15West Bengal 32535.94 6.62 1.56 8.83 6.66Eastern region 111298.14 14.58 8.18 14.42 12.86Gujarat 33174.29 4.98 7.78 3.27 4.67Madhya Pradesh 48072.93 8.06 4.32 11.29 9.04Maharashtra 52069.34 -13.23 19.49 7.08 7.28Rajasthan 24153.65 9.53 2.54 7.34 6.44Central Region 157470.21 9.34 34.13 28.98 27.43Andhra Pradesh 49877.56 3.80 12.93 8.07 8.68Karnataka 33176.34 7.60 5.95 7.22 6.95Kerala 25168.76 9.41 -1.71 2.31 2.32Tamil Nadu 47006.87 11.31 -1.83 9.46 6.86Southern region 155229.52 32.12 15.33 27.06 24.81All India 565642.79 100.00 100.00 100.00 100.00C V (percentage) 116.93 117.96 68.88 69.98

StateAverage Value of Output 1960s

Percentage Distribution of Incremental Value of Output


• Period 1 – – HVY seed and technology initially restricted to Punjab, Haryana and western UP. – also the wheat-growing region. – not initially successful for rice cultivation. – led to widening of regional disparities in the India in the agricultural output– Nearly 44 percent of the incremental output in the period 70s to that of the 60s occurred in the

northwest region. , While southern region contributed for 32 percent of the incremental output during the same period. (Table below)

• Period 2 – – extension of new technology from wheat to rice – and its spread from Punjab and Haryana to the eastern UP and the rice producing states of the

south. – Eastern region declined because of the petering out of the HYV wheat cultivation in the region.

This can be seen in W.Bengal and Bihar. – Wide fluctuations in the central region, mainly due to good monsoons of the period in the

region. • Thus in the table below it shows the decline of share of the incremental output of the

eastern regions, north western region and the southern region, and the rise of the central region.

• Period 3 – – Period of turning point in Indian agriculture. – highest growth rate during this phase, at the rate of 3.40%.– And the growth has been more or less regionally distributed in the period.

• Growth of output– due to growth of yield,– growth of area – and changes in the cropping pattern.

1962-65 1970-73 1980-83 1992-95 (A) (B) ( C) (D)Haryana 3927.21 5090.01 6229.13 10128.73 3.30 2.04 4.13 3.21Himachal Pradesh3048.15 3733.76 3917.69 5195.63 2.57 0.48 2.38 1.79Jammu and Kashmir2986.95 4481.40 5758.75 5567.01 5.20 2.54 -0.28 2.10Punjab 5395.62 7476.29 9707.65 13597.22 4.16 2.65 2.85 3.13Uttar Pradesh 3970.10 4589.98 5805.13 8656.20 1.83 2.38 3.39 2.63North-west region4092.75 5024.54 6422.63 9582.50 2.60 2.49 3.39 2.88Assam 5727.97 6241.20 7906.69 8196.82 1.08 1.02 1.44 1.20Bihar 3679.55 4009.73 4048.56 5678.08 1.08 0.10 2.86 1.46Orissa 4114.37 4072.70 4374.84 5979.16 -0.13 0.72 2.64 1.25West Bengal 5074.57 5614.56 5943.81 9958.45 1.27 0.57 4.39 2.27Eastern region4338.30 4671.31 4944.00 7318.50 0.93 0.57 3.32 1.76Gujarat 3673.01 4326.57 5693.43 7460.09 2.07 2.78 2.28 2.39Madhya Pradesh2603.49 2835.86 3069.65 4773.12 1.07 0.80 3.75 2.04Maharashtra 2898.61 2343.57 3794.68 5176.94 -2.62 4.94 2.62 1.95Rajasthan 1740.45 2217.10 2334.77 3715.22 3.07 0.52 3.95 2.56Central Region2653.78 2763.12 3464.09 4943.84 0.51 2.29 3.01 2.10Andhra Pradesh4064.96 4363.05 6276.23 9390.64 0.89 3.70 3.41 2.83Karnataka 3207.56 4267.23 4989.92 6969.70 3.63 1.58 2.82 2.62Kerala 11375.65 12957.56 12333.85 15625.96 1.64 -0.49 1.99 1.06Tamil Nadu 6689.49 7899.75 8756.47 14073.94 2.10 1.03 4.03 2.51Southern region4873.34 5872.68 6848.20 9990.63 2.36 1.55 3.20 2.42All India 3738.19 4256.79 5090.42 7388.05 1.64 1.80 3.15 2.30C V (percentage) 56.86 58.19 48.12 46.30 91.34 85.20 39.05 29.26

State and Regionwise Levels and Growth of Crop Yield during 1962-65,1970-73,1980-83 and 1992-95 (At 1990-93 Constant Prices)

StateAverage Value of Yield (Rs Hectare) Per Cent Annual Compound Growth Rate*



– Significant rise in yield of some of the crops like rice and wheat after mid 1960s following the new technology.

• Period 1 .- Yield increase across all regions, highest in the north east region and the south region. – Yield levels substantially high in costal states like Kerala, TN, and W.Bengal. due to factors

like weather, rainfall, and soil.– High in north west region due to irrigation facilities

• Period 2 – significant change in the yield levels and growth across regions.– The southern region continues to have a higher yield – due to the agro-climactic conditions. But the yield

growth was faster in the northeastern region due to the new technology. – Yield in the central region continued to be the lowest. But the growth was substantial. – During the period 70s to 80s the combined cultivation of wheat and rice led to the spread of new

technology to many new regions, Gujarat, Maharashtra, in central region and Andhra and Karnataka in the south. However eastern region continued to be at the lowest level.

• Period 3 :- Yield growth rate highest in all the periods. This is also seen across regions, especially in the central region, which was growing the slowest in period previously.

• However, as would be discussed later, the sources for this growth of yield rate are different in different regions.

– Eastern region – due to rise in rice productivity– Central region and to some extent southern region—cropping pattern changes from low value

coarse cereals to oil seeds ( in southern region cultivation of rice also played some role)– Northwestern region - due to the growth of rice, wheat and cotton and sugar cane.


1962-65 1970-73 1980-83 1992-95 (A) (B) ( C) (D)Haryana 4151.37 4606.07 5065.77 5429.33 1.31 0.96 0.58 0.9Himachal Pradesh816.21 865.97 907.83 888.42 0.74 0.47 -0.18 0.28Jammu and Kashmir813 823.5 901.53 970.13 0.16 0.91 0.61 0.59Punjab 4092 4935.3 6042.05 6806.47 2.37 2.04 1 1.71Uttar Pradesh 23583.17 24937.1 25903.44 24288.9 0.7 0.38 -0.53 0.1North-west region33455.75 36167.93 38820.62 38383.26 0.98 0.71 -0.09 0.46Assam 2625.47 2791 3324.93 3617.73 0.77 1.77 0.71 1.07Bihar 10689.41 10722.13 10195.2 9304.78 0.04 -0.5 -0.76 -0.46Orissa 5928.33 6479.6 7832.97 6575.61 1.12 1.91 -1.45 0.35West Bengal 6411.57 6987.2 7062.77 7914.24 1.08 0.11 0.95 0.7Eastern region 25654.78 26979.93 28415.87 27412.36 0.63 0.52 -0.3 0.22Gujarat 9031.91 8831.2 9126.17 8792.27 -0.28 0.33 -0.31 -0.09Madhya Pradesh18464.8 19822.7 20799.23 23235.97 0.89 0.48 0.93 0.77Maharashtra 17963.57 16512.3 19276.73 19833.61 -1.05 1.56 0.24 0.33Rajasthan 13877.79 15239.67 16394.03 18541.2 1.18 0.73 1.03 0.97Central Region59338.07 60405.87 65596.17 70403.04 0.22 0.83 0.59 0.59Andhra Pradesh12270.12 12311.96 12199.33 11735.27 0.04 -0.09 -0.32 -0.15Karnataka 10343.17 9573.96 10295.23 11689.72 -0.96 0.73 1.06 0.41Kerala 2212.51 2676.28 2566.23 2642.81 2.41 -0.42 0.25 0.59Tamil Nadu 7026.97 7397.88 6304.93 6725.38 0.65 -1.59 0.54 -0.15Southern region31852.77 31960.08 31365.73 32793.18 0.04 -0.19 0.37 0.1All India 151314.63 156621.8 165698.33 170603.83 0.43 0.56 0.24 0.4C V (percentage) 141.05 159.04 279.54 112.27

State and Regionwise Levels and Growth of Area during 1962-65,1970-73,1980-83and 1992-95 -Major 43 crops

StateAverage Area( 000 Hectares ) Per Cent Annual Compound Growth Rate*


• growth of cropped area – through increase in the net area sown – or through an increase in the intensity of cultivation. Intensity of cultivation is

brought about by bringing in more short duration crops and irrigation. • Area expansion has ceased to be a source of growth of crop output since mid

1960s. • After the 1960s NSA is more or less stagnant while the cropped area increased

mainly due to increases in intensity of cultivation.• Period 1 – GCA grew at 0.43 percent at the all India level, while in Punjab

and Haryana the area growth was much higher than this due to the irrigation facilities and the short breeding crop varieties. Other regions also experienced rise in the GCA but this was due to other reasons like weather and rainfall.

• Period 2 - GCA total increased at the rate of 0.56, while GCA in the northwestern region continued to grow at a fast rate due to the intensive cultivation. Other regions the growth was due to other factors like rainfall. Etc.

• Period 3 - GCA total growth declined to 0.24 percent. Both north west region and the eastern region experienced decline in GCA growth.


1962-65 1970-73 1980-83 1992-95 (A) (B) ( C) (D)Haryana 3483.67 3550.00 3619.33 3491.00 0.24 0.19 -0.36 0.01Himachal Pradesh 535.67 551.00 572.00 573.50 0.35 0.37 0.03 0.23Jammu and Kashmir 683.67 586.33 718.33 732.00 -1.90 2.05 0.19 0.23Punjab 3861.00 4071.67 4201.00 4177.00 0.67 0.31 -0.06 0.26Uttar Pradesh 17296.00 17272.00 17245.00 17237.50 -0.02 -0.02 0.00 -0.01North-west region 25860.00 26031.00 26355.67 26211.00 0.08 0.12 -0.06 0.04Assam 2120.33 2326.67 2702.67 2706.00 1.17 1.51 0.01 0.82Bihar 8478.00 8261.00 7902.00 7438.50 -0.32 -0.44 -0.60 -0.44Orissa 5938.00 5662.67 6117.33 6320.50 -0.59 0.78 0.33 0.21West Bengal 5504.67 5437.00 5565.00 5334.00 -0.15 0.23 -0.42 -0.10Eastern region 22041.00 21687.33 22287.00 21799.00 -0.20 0.27 -0.22 -0.04Gujarat 9531.00 9692.33 9609.67 9437.00 0.21 -0.09 -0.18 -0.03Madhya Pradesh 16536.33 18436.33 18856.67 19452.50 1.37 0.23 0.31 0.54Maharashtra 18148.00 16921.33 18208.00 17972.00 -0.87 0.74 -0.13 -0.03Rajasthan 13923.33 15100.33 15501.67 16213.50 1.02 0.26 0.45 0.51Central Region 58138.67 60150.33 62176.00 63075.00 0.43 0.33 0.14 0.27Andhra Pradesh 11511.33 11360.67 11032.33 10753.50 -0.16 -0.29 -0.26 -0.23Karnataka 10426.33 10129.00 10215.33 10748.50 -0.36 0.08 0.51 0.10Kerala 2022.67 2185.33 2176.67 2249.00 0.97 -0.04 0.33 0.35Tamil Nadu 6060.33 6283.00 5453.00 5546.50 0.45 -1.41 0.17 -0.29Southern region 30020.67 29958.00 28877.33 29297.50 -0.03 -0.37 0.14 -0.08All India 136981.33 139044.00 140982.33 141999.50 0.19 0.14 0.07 0.12

StateAverage Area( 000 Hectares ) Per Cent Annual Compound Growth Rate*

State and Regionwise Levels and Growth of Net Area Sown during 1962-65,1970-73,1980-83and 1992-95

- The trends in the NSA shows that there was fairly rapid deceleration in the growth of NSA during the entire period. In many states the NSA even declined due to the urbanization/ or and

afforestation. This has led to the rise of cropping intensity across the regions in all the years, especially in the

period 80-83 to 90-93.

1962-65 1980-83 1987 1962-65 1980-83 1987 1962-65 1980-83 1992-95 1962-65 1980-82 1992-95Haryana 0.70 17.07 55.50 2.32 71.50 120.47 2.53 68.99 191.19 31.10 62.21 77.14Himachal Pradesh 0.04 1.57 7.32 0.05 3.15 3.32 0.94 30.65 50.29 17.10 16.70 17.84Jammu and Kashmir 0.17 1.10 6.08 0.12 1.38 3.97 1.54 34.16 60.75 35.97 40.37 40.69Punjab 2.41 25.35 81.78 8.20 157.69 160.09 7.84 192.07 296.68 58.42 86.84 94.58Uttar Pradesh 0.50 8.25 20.88 1.45 63.93 98.47 4.06 75.36 134.27 26.99 47.42 62.29North-west region 0.80 11.85 34.40 2.51 76.89 106.41 4.29 91.02 163.62 32.26 55.52 67.25Assam 0.27 0.11 2.70 0.11 0.52 1.59 0.26 4.15 11.94Bihar 0.21 1.94 8.88 0.92 49.76 52.32 2.96 27.46 85.36 20.13 33.67 43.18Orissa 0.07 0.20 2.71 0.19 2.82 6.31 1.20 13.78 33.35 11.80 22.90 26.24West Bengal 0.17 0.34 5.02 0.80 37.36 129.02 4.72 48.02 139.36 22.62 24.57 54.27Eastern region 0.17 0.83 5.34 0.61 27.59 51.47 2.63 26.07 74.27 16.50 24.10 30.94Gujarat 0.27 2.94 12.62 9.33 58.88 72.05 3.63 40.38 76.66 7.83 22.93 29.33Madhya Pradesh 0.14 1.24 6.46 1.05 21.36 32.32 0.82 11.78 42.01 5.67 11.79 20.66Maharashtra 0.13 1.17 4.60 7.05 32.12 32.57 2.41 26.83 68.63 6.90 12.66 15.38Rajasthan 0.27 3.49 10.96 0.56 27.61 37.01 0.56 9.25 31.39 12.95 21.27 27.20Central Region 0.19 2.05 8.05 4.19 31.82 39.57 1.72 19.93 51.88 8.08 16.18 11.97Andhra Pradesh 0.20 1.95 4.85 5.43 62.37 84.08 9.67 58.20 149.74 29.47 35.43 39.87Karnataka 0.17 1.98 5.21 3.58 29.46 47.32 3.43 37.15 74.40 9.51 15.95 22.58Kerala 0.17 0.60 5.19 4.36 45.41 96.09 15.40 45.66 85.79 19.73 13.36 12.34Tamil Nadu 0.39 2.74 2.68 31.94 218.82 194.07 11.99 92.17 140.78 45.33 48.70 47.90Southern region 0.23 2.00 4.58 10.07 77.81 93.28 8.34 55.88 115.33 25.66 29.32 33.02All India 0.30 3.68 11.73 4.58 49.16 64.94 4.33 42.62 89.08 19.00 29.29 35.66

Percentage of GCA IrrigatedStatewise Level of Inputs used During 1962-65,1980-83 and 1992-95

StateNumber of Tractors( Per 000 Hectares)Number of Pumpsets (Per 000 Hectares)Consumption of Fertilisers (Kgs/Hect)



• The levels and growth of land productivity (yield) and the growth of output are positively related to the use of modern inputs, such as irrigation, tractors, fertilizer use.

• There is also an association between the growth of output and use of modern inputs at the all India level though not as strong as for the yield relationship.

• The largest rise in output growth and yield was in the period from 83 to 93. This was also the period when input consumption shot up to the peak in India. (see irrigation and fertilizers)


Cropping Pattern Changes-Regionwise (Percentage Share of Area under 43 Crops)Region/Period Rice WheatCoarse CerealsPulses FoodgrainsNon FoodgrainsNine OilseedsFibre Crops Cotton SugarcaneRemaining Crops

North-Western Region1962-65 15.30 19.98 23.20 20.99 79.47 20.53 12.28 2.49 2.18 4.61 1.151980-83 18.95 33.83 16.13 10.76 79.68 20.32 10.68 2.89 2.75 4.72 2.041992-95 22.49 38.47 12.33 9.20 82.48 17.52 7.02 3.16 3.12 5.47 1.86Eastern Region1962-65 62.71 2.90 7.37 15.63 88.62 11.38 3.30 4.16 0.09 1.01 2.911980-83 58.54 7.51 7.58 12.55 86.17 13.83 5.74 3.37 0.03 0.86 3.861992-95 61.83 8.41 4.78 9.64 84.66 15.34 6.43 3.04 0.03 0.74 5.13Central Region1962-65 10.55 9.66 38.14 16.68 75.03 24.97 12.06 9.52 9.27 0.44 2.951980-83 10.65 10.66 35.94 17.80 75.05 24.95 12.02 8.09 7.90 0.69 4.151992-95 10.83 10.16 29.70 17.54 68.23 31.77 20.10 6.91 6.82 0.87 3.90Southern Region1962-65 24.99 1.01 36.81 9.66 72.47 27.53 12.21 6.17 5.76 0.87 8.281980-83 24.88 1.10 29.92 11.39 67.30 32.70 13.94 5.66 5.24 1.68 11.421992-95 23.56 0.70 20.82 12.19 57.27 42.73 23.04 5.17 4.89 2.15 12.38All India1962-65 23.78 8.92 29.20 15.93 77.85 22.15 10.59 6.31 5.36 1.56 3.691980-83 23.96 13.68 25.08 13.91 76.63 23.37 10.92 5.55 4.78 1.85 5.051992-95 24.91 14.32 19.81 13.17 72.21 27.79 15.31 5.04 4.42 2.13 5.32


Share of Various Crops in Total Output of RegionsRegion/Period Rice Wheat CoarsePulses CerealsFood grainsNon-food grainsNine GrainsFibre OilseedsCotton CropsSugarcaneRemaining Crops

North-Western Region1962-65 12.88 15.42 11.02 23.21 62.53 37.47 11.07 4.87 4.66 18.22 3.31

1980-83 19.60 34.68 6.47 8.55 69.30 30.70 6.93 4.25 4.19 14.49 5.03

1992-95 23.63 37.09 4.79 5.66 71.16 28.84 5.93 4.59 4.58 13.63 4.69

Eastern Region1962-65 60.80 1.44 3.33 12.11 77.68 22.32 2.66 4.54 0.06 3.88 11.24

1980-83 50.90 7.00 3.35 8.88 70.13 29.87 6.18 3.77 0.03 3.17 16.75

1992-95 57.57 7.71 2.57 4.71 72.56 27.44 4.42 3.18 0.02 1.79 18.05

Central Region1962-65 13.79 7.79 20.41 16.39 58.37 41.63 18.11 11.89 11.78 4.16 7.47

1980-83 12.82 12.40 18.10 15.49 58.81 41.19 17.42 9.36 9.30 6.72 7.69

1992-95 11.41 12.57 13.78 14.25 52.01 47.99 26.41 8.40 8.38 5.79 7.39

Southern Region1962-65 31.01 0.21 12.14 3.34 46.70 53.30 15.11 3.70 3.51 5.99 28.50

1980-83 31.09 0.30 10.01 3.79 45.20 54.80 12.29 3.84 3.67 8.92 29.75

1992-95 26.93 0.18 6.75 3.30 37.15 62.85 16.73 4.46 4.37 8.95 32.71

All India1962-65 27.86 6.27 12.39 13.51 60.02 39.98 12.42 6.43 5.39 7.98 13.15

1980-83 26.27 14.89 9.94 9.16 60.27 39.73 10.94 5.40 4.69 8.92 14.47

1992-95 26.75 15.61 7.42 7.23 57.00 43.00 14.11 5.36 4.82 8.20 15.33


• The seed fertilizer technology was primarily confined to wheat and rice in the mid 60s. Later on the technology spread to a number of crops like the coarse cereals, rapeseed and mustard, soyabean, sunflower, cotton and sugarcane etc.

• Different regions experienced different growth rates in output partly due to the changes in the crops in cultivation as well. The regions that focused in the production of wheat, which had the highest yield generally had a higher rate of growth. This was followed by cotton, rapeseed, mustard, rice and coarse cereals, in that order.

• Structural rigidities in the Indian agriculture that the traditional agriculture did only food grain production. It is only in the eighties that the cropping pattern started to change in India.

• But there were substantial changes within the food grain production itself. Due to the rise in yield and the price advantage during 1965 to 80s the share of wheat in the total cropped area increased from 8.9 % to 13.7 percent. On the other hand the share of coarse cereals and pulses recorded a notable decline. While rice continued without much change.


• In the northwestern region the chief crops became wheat and rice, displacing coarse cereals and pulses, though the share of food grains remained more or less same during the entire period.

• In the eastern region also the wheat share increased substantially at the cost of coarse cereals and pulses. There was some rise in the share of oil seeds.

• Central regions saw the decline of coarse cereals especially in the 80-90 periods, while the share in oilseeds increased heavily.

• in the southern region also there was a vast decline in the share of coarse cereals ,whose share was taken over by the non-food grains, especially oilseeds.

• this massive shift towards the oilseeds was mainly due to the relative increase in profitability due to two factors; 1- hefty increases in the administered prices of oil seeds compared to the coarse cereals. 2- increase in the yield in the major oilseeds.


1962-65 1970-73 1980-83 1992-95 (A) (B) ( C) (D)Haryana 11144 13874 15357 21871 2.78 1.02 2.99 2.27Himachal Pradesh 3609 5110 5184 6045 4.44 0.14 1.29 1.73Jammu and Kashmir 2922 4185 5201 4664 4.59 2.20 -0.91 1.57Punjab 11302 14950 20646 26967 3.56 3.28 2.25 2.94Uttar Pradesh 5513 6032 6801 7773 1.13 1.21 1.12 1.15North-west region 6246 7373 8690 10534 2.09 1.66 1.62 1.76Assam 6166 6413 7349 8021 0.49 1.37 0.73 0.88Bihar 3860 3500 2965 2934 -1.22 -1.64 -0.09 -0.91Orissa 5812 5483 6340 6278 -0.73 1.46 -0.08 0.26West Bengal 5714 5787 5380 7808 0.16 -0.73 3.15 1.05Eastern region 4942 4739 4644 5271 -0.52 -0.20 1.06 0.21Gujarat 8878 8529 9930 10807 -0.50 1.53 0.71 0.66Madhya Pradesh 6234 6327 6104 8556 0.19 -0.36 2.85 1.06Maharashtra 7309 4882 8144 9758 -4.92 5.25 1.52 0.97Rajasthan 5233 6534 6348 9090 2.82 -0.29 3.04 1.86Central Region 6791 6307 7401 9373 -0.92 1.61 1.99 1.08Andhra Pradesh 6706 6355 7707 9293 -0.67 1.95 1.58 1.10Karnataka 6883 7575 8061 11016 1.21 0.62 2.64 1.58Kerala 15576 15657 15586 16830 0.07 -0.05 0.64 0.26Tamil Nadu 7855 8472 7274 10943 0.95 -1.51 3.46 1.11Southern region 7817 8175 8284 10794 0.56 0.13 2.23 1.08All India 6414 6552 7215 8961 0.27 0.97 1.82 1.12C V (percentage) 43.36 46.94 51.94 56.47 269.52 184.59 80.69 72.76

StateMale Workers Productivity Growth Rate (Per Cent Per Annum)*

Level & Growth of Male Agricultural Workers Productivity (Rs per worker at 1990-93 prices)


• Rapid rise in agricultural output along with increasing intensity of cultivation increased the demand for labor in some parts of India.

• On the other hand there took place a rapid capitalization of agriculture in response to the rising wages, and this resulted in the displacement of labor in certain agricultural operations.

• In some regions where the new technology did not take root also the labor absorption in the sector was high due to non – availability of non-agricultural employment.

• Historically speaking in traditional societies in spite of the vast differences in the land yield per worker productivity have tended to remain equal over regions. The inequalities were kept low through migration, population adjustment, and suction mechanism.

• However we find that the regional disparity in MAW productivity is increasing over the years.


Southern WesternNorth-WesternCentral EasternMilk 1981-82 18.8 11.7 20.6 33.9 13.5

1994-95 20.9 13.0 18.2 33.6 12.3Eggs 1987-88 45.2 11.0 10.3 6.8 23.9

1993-94 42.1 11.9 13.2 9.6 20.9Avg value of crop output (a) 1992-95 26.0 13.4 12.5 31.0 16.0GCA (b) 1991-92 19.0 17.8 9.4 36.2 17.8

Item YearRegions

Regionwise shares in milk and eggs and all crop output and Gross cropped area (per cent)

Regional perspectives in Industrial development

1.Manufacturing Sector as the Engine of Growth-• Kaldor’s First Law: Countries with higher manufacturing growth will also have higher

GDP growthGDPgrowth = f(ManufacturingGrowth)

• Kaldor’s Second Law: Growth of manufacturing production is causally and positively related to the growth of manufacturing productivity because the sector is subject to economies of scale (Verdoon’s law)

Manufacturing growth = f(manufacturing productivity growth)

• Kaldor’s Third Law: Economy’s productivity growth should vary inversely with the growth of labour force not employed in manufacturing because it is envisaged that outside of manufacturing sector, productivity growth is lower due to disguised unemployment, decreasing returns etc.

Productivity growth = f {1/ non-manufacturing employment growth)


Manufacturing Sector for regional development • Industrialization results in strong backward linkages strengthening the market of the

primary products of the region.• It also helps in infrastructure building of the region• It relieves agriculture from disguised employment, leading to productivity rise in

agriculture (fei ranis model) and higher wage rates

Manufacturing sector in the regional setting• Manufacturing sector is a potential candidate for bringing in regional balance, due to its

locational mobility unlike agriculture sector and its inter- sectoral linkages, which could produce dynamic outcomes of growth, productivity, and higher wages

• However, some of the issues are (Dholakia, 1989)– Should individual industries be geographically concentrated in a few regions or

should they be evenly spread out?– Should individual regional economies have a diversified structure of industries or

should they have a high degree of specialization in a few industries?


• 5. Regional perspectives in industry is analyzed from various angles such as :

• Regional Growth patterns• Regional Location of various industries • Regional concentration of all industries • Inter regional inter industry linkages• Regional variations in formal and informal manufacturing• Regional variations in size, ownership etc • 6. All of these are to be analyzed using various industry indicators like• NVA• C-O ratio• C-L ratio• Employment


• Regional Patterns in Industrial growth • (Goldar and Seth, 1989, EPW)• Industrial Growth Patterns : Spatial Variations• Marked deceleration in Indian manufacturing after the mid 60s.(Raj, 1976, Shetty,

78, and Ahluwalia, 1978)• The reasons as per Ahluwalia

• Slow down of public investment and resulting inadequate infrastrcutre investment • Poor management of infrastrucure sector.• Slow growth in agricultural income and the resulting slow growth in demand for industrial products. • Restrictive industrial and foreign trade policies which led to high cost industrial structure.

• After mid seventies, especially in the eighties, the deceleration in the sector have been arrested and there is evidence for some smart recovery in rate of industrial growth.

• -ahluwalia holds the view that it is the favorable changes in the industrial and foreign trade policy in the period helped this recovery in the growth rate.


annual growth rate of real NVA in reg. Manufacturing

State

Growth Rate (Per Cent Per Annum)* change in growth rate

a b c b-a c-b

60-61 to 65-66 65-66 to 75-76 75-76 to 85-86

Andhra Pradesh 6.84 6.71 6.03 -0.13 -0.68

Bihar 4.26 2.4 6.07 -1.86 3.67

Gujarat 4.57 3.88 4.11 -0.69 0.23

Karnataka 8.24 7.39 6.76 -0.85 -0.63

Kerala 10.8 4.59 3.03 -6.21 -1.56

Madhya Pradesh 9.62 7.95 6.43 -1.67 -1.52

Maharashtra 5.81 5.53 5.48 -0.28 -0.05

Orissa 27.17 3.35 9.84 -23.82 6.49

Rajasthan 7.32 3.95 5.8 -3.37 1.85

Tamil Nadu 6.49 5.67 5.73 -0.82 0.06

Uttar Pradesh 6 4.13 7.09 -1.87 2.96

West Bengal 6.23 -1.53 1.88 -7.76 3.41


• The period of study covered 1960-61 to 85-86, dividing into three phases. They are – to 65-66,- period I– 65-66 to 75-76, - period II– 75-76 to 85-86. – period III

• 12 of the large states are covered .• NVA in the registred manufacturing at 70-71 prices is obtained and then the growth rates

are calculated statewise. • Trends –• All the states experienced a deceleration in the rate of industrial growth after the mid

sixties. But the extent of deceleration varied from state to state. Sharp fall in Orissa, Bengal, Kerala, Rajasthan, whie Andhra and Maharashtra saw onlty marginal decline in the rate odf industrial growth.

• After the mid seventies there was a sharp rise in the industrial growth rates in most states. These states are Orissa, Bihar, Bengal, and UP, while Kerala and MP and to a lesser exten Karnataka and Andhra Pradeh experience a deceleration in industrial growth beyond 75-76.

• States that experienced the sharpest deceleration in the first period are also the same states that experienced a sharp recovery in the second period. (except for Kerala)


Based on the trends States can be classified into 3 groups.• First group – states that did not experience any marked deceleration after the

mid sixties or ant markets improvement in the growth rate after the mid seventies. I.e. they experienced growth at a uniform rate – Maharashtra, Andhra Pradesh, Gujarat, TN, Karnataka.

• Second group – states that experienced a significant deceleration after the mid sixties and then a significant acceleration after the mid seventies.- Orissa, Rajasthan, UP and W. Bengal,

• Third Group- states that experienced a continuous deceleration in the rate of industrial growth. – MP and Kerala


• Regional inequality is lesser in the secondary sector as a whole compared to the manufacturing sector alone.

• Regional Inequality is declining by both indicators

Weighted CV

79-80 84-85

reg mfg sector 77.68 72.38

secondary secotr 53.08 46.74

Dholakia, 1989


NVA growth

Nva high low

Level high Gujarat, Haryana Maharashtra, Punjab, Karnataka, TN, WB

low JK, Himachal, UP, MP, Bihar Raj, AP, Kerala, Orissa, Assam

Dhaolakia, 1989

-Net Value added in southern states have grown at a rate lower than the national growth rate during the period 1979-84 . The northern states, except Rajasthan and Punjab, on the contrary have grown at a rate higher than the national growth rate during the same period. Deliberate policy alone can give rise to such sharp regional differentiation. -Again the Southern region (plus West Bengal and Assam) has a considerably above average capital productivity in manufacturing but has significantly less capital per worker. The northern region, on the contrary, has high capital per worker but is far below the national average in terms of capital productivity. -One of the reasons for high capital intensity in manufacturing of the northern region during the mid-eighties is that the north has secured a much larger share in the investments in the new undertakings of the central government. Most of these states were congress run states, which also had the same party forming the central government.-States that have a higher level of per capita net value added than the national average had a lesser growth rate than the national average, while states that had a level less than the national average, the had a growth rate higher than the national average, implying convergence in the per capita NVA across states.


• Causes for the spatial variation in industrial growth.• Agricultural growth

– The expected relation is that states that high rates of agricultural growth will have low rates of deceleration in industrial growth.

– But the rank correlations drawn between the two shows that there is no significant relation between the two. I.e. states, which experienced poor agricultural growth, did not experience in industrial growth as much those states whose agricultural performance had been relatively better.

• Increase in power supply (infrastructure) – – similarly the changes in power supply in different regions also did not show any significant

relation with the deceleration or acceleration of industrial growth across different regions. • Regional intensity of public sector investment.

– The rank correlation between the extent of industrial deceleration and the index of regional intensity of pubic investment is found to be 0.38. If Rajasthan is excluded, then the coefficient increases to 0.56. In essence it means that the states which gained relatively more from public investment in the 50s and 60s experienced a more pronounced slow down in the industrial growth after the mid sixties , presumable due to the significant slowdown in the public investment during the period.


• Regional Concentration of Industrial Location: (Shetty, S.L., 1982)• State wise distribution of factories brings out the nature of extreme concentration of

factories in a few states. The four industrialized states of Maharashtra, West Bengal, Gujarat and Tamil Nadu together had 44.7% of factories, 37.9% of the fixed capital and 40.8% of productive capital. While Bihar had only 5 to 6% share of all attributes whether relating to employment or output. The five above mentioned states and U.P, M.P., A.P. and Karnataka had a share in the Value added at about 4.0% or more, each. These nine states accounted for 78.4% of total number of factories, 79.0% of fixed capital and productive capital, 82.4% of factory employment. And over the years the concentration in a few states continue to be rising.

• What causes greater growth in NVA, concentration of an industry in a few states or regional spread of an industry? (dholakia,89)

– If returns to scale are increasing, increased regional concentration of industry would lead to higher growth of NVA. But if there are decreasing returns to scale, then increased regional concentration of an industry would result in a lower growth of NVA.

– 23 two digit level industry groups are taken for the period 79-80 to 84-85The degree of regional concentration of an industry is taken as the share of the top three states in terms of NVA in the industry group. The degree of association or correlation between the degree of concentration and growth rate of per capita NVA turns out to be negative and significant.

– This show decreasing returns to scale, hence regional spread of industries would be needed for higher growth of per capta NVA.


• Regional Patterns of Industrial Diversification: (Shetty, S.L., 1982)• Within each of these nine states mentioned above nearly 70 percent of the

gross output and value added is concentrated in 7 major industries. Generation of electricity, manufacture of chemicals and chemical products, and manufacture of food products appear in all the states’ top 7 industries. Cotton textile is common to six out of the nine states.

• In the three southern states of TN, AP and Karnataka, there was greater diversification into other industries, while in the other states there was primacy of a few industries as said above.

• (DHolakia, 89) We find the top 3 industrial share in each state as the degree of concentration in a state. This is correlated with capital per worker. Such a correlation is to test the hypothesis that if the regional economy is diversified th invariably reduces the requirement of capital per worker .This is based on the justification of diminishing returns. Specialization implies more investment in that industry groups which are already dominating the regional economy. If diminishing returns to scale operate in the economy we require a higher amount of capital per worker to maintain labor productivity at the original level. Thus would mean increase in capital intensity. The measured correlation coefficient turn out to be =.503 and significant at 5 percent level.

Documents

Agriculture Industry –Regional variations in input and output in these sectors