28

Chapter – II

Review of Literature

2.1) Introduction

2.2) Literature related to the Growth and Disparity in Agriculture

2.3) Literature related to the Growth and Disparity in Other sectors

29

Chapter – II

Review of Literature

2.1) Introduction

An attempt has made in this chapter to examine earlier literatures relating the

research problem. The present chapter has covered the research articles in the journals,

books. Commission reports and some Ph.D thesis related to the research problem. This

chapter is divided into two sections. The first section deals with the literature relating to

disparity in agricultural sector while in second section, other sectors are included.

2.2) Literatures related to the Growth and Disparity in Agriculture

Mohanty B. B.1 (2009) studied about regional disparity in agricultural

development in Maharashtra. He concludes that the process of agricultural development

in Maharashtra over the last three decades indicates regional inequality, which western

Maharashtra remained much ahead of other regions in terms of major developmental

indicators. However, compared to Vidarbha the Marathwada region experienced better

improvement in some respects. The rapid development in western Maharashtra is

attributed to the rise of the Maratha Kunabi peasants, as a Unified political class, who

dominated state politics through caste and Kinship network during the colonial as well as

post-colonial periods. The increasing modernization of agriculture in this region was also

in the interest of the industrial bourgeois of Bombay, as it created a nearby market for

modern agricultural appliances and opportunities for the establishment of agro-processing

industries. The Marathwada and Vidarbha regions were unable to compete effectively for

a larger share of states resources due to the absence of a well-articulated structure of

factions and alliances. As a result, the influential elites of western Maharashtra remained

in an advantageous position to divert the developmental resources of the state to their

1 Mohanty B. B.(2009) Regional Disparities in Agricultural Development of Maharashtra, Economic and Political Weekly, Mumbai, Feb. 7, 2009, Vol. 6, PP. 63-69

30

region. The relatively better performance of the Marathwada region was mainly due to

the socio-cultural proximity of its local elites with those of western Maharashtra.

Sawant S. D. and Achutan C. V.2 in the research paper on ‘agricultural growth

across crops and regions’ studied and conclude that, state or regions which lagged in

behind considerably during the period 1968-69 to 1981-82 were able to push up their

share considerably during the period 1981-82 to 1990-91. Thus, they have shown

regional disparities in agricultural growth tended to decline in the period 1980s. They

have computed CAGRs of State Domestic and found that excepting western region

(Gujarat, Maharashtra) and Andhra Pradesh from Southern region the process of

acceleration in agricultural growth was almost universal across the states in period 1981-

82 to 1990-91. Moreover, the northwestern region, which spear headed. India’s green

revolution continued to be the high growth region even during period II (1981-82 to

1990-91).

Deosthali and Nikam 3 (2004) attempted to study the regional growth trends of

rice crop in Maharashtra According to them, the growth in rice could achieve over the

year by bringing more and more area under cultivation of it. In Maharashtra, Rice area

has increased from 1.3 mm hectares in 1960-61 to 1996-97 and production increased

from 1.37 MT tones to 2.61 MT. They conclude that, the production and area of rice in

Maharashtra have increased by 47.5% and 12% respectively indicating increase in

production mainly yield led, the development of out spread of the High yield variety-led

technology. In the entire control region, high vertical growth has seen with low

concentration of rice area in the GCA (less than 60%). It is matter of concern that the

spread of improved technology is in pockets around the university, research centre or the

2 Sawant S. D. and Achutan, Agricultural Growth Across Crops and Regions, Economic and Political Weekly, Mumbai,, March 25, 1995, PP A– 2 to A-13.

3 Deosthali V. and Nikam C (2004), Rice- Regionwise Growth Trends in Maharashtra, Economic and Political Weekly, Mumbai, January 17, pp-240-242

31

district headquarters where diversification of land use is resulting in limited area under

rice cultivation. Lastly, they suggest that about half of the rice cultivators taluka’s are

required to be attended by agricultural scientist and extension officers a priority basis for

promoting rice cultivation vertically.

Singh Richa4 (2004) attempted to examine equity in fertilizer subsidy distribution.

She examined the issue of inter-crop, inter-regional and inter-class equity in fertilizer

distribution in terms of shares of different farm classes, crops and states in total fertilizer

use as well as per hectare fertilizer use across the farm. The paper discusses about the

equity issue in fertilizer subsidy distribution only. She found that, interstate disparity in

fertilizer consumption remains high, though it has been reducing over the years. More

significant finding is that there prevails a fair degree of inter-class equity in distribution

of fertilizer subsidy, contrary to the widely prevalent impression. Moreover, a uniform

approach to reduction of all types of subsidies is justified. She suggested that, instead, a

well through out property sequenced gradualist and regionally differentiated approach to

reduction of subsidy needs to be adopted.

Pandey M.M.5 (2003) studied about the Indian agriculture to take its overall

review. According to him, country has made significant progress in the adoption of

modern methods of cultivation and creative infrastructure for effectively and sustainable

utilizing the national resources available at its command. It has transformed the image

from that of “begging bowl to bread basket” due to the efforts of various agencies

combined with scientific and engineering imparts in agriculture. He examined the

performance of output and input availability in indian agricultural. He evaluated factors

of production like land holdings and operational holdings from mechanizations, and its

4 Singh Richa (2004), Equity in Fertiliser Subsidy Distribution, Economic and Political Weekly, Mumbai, January 17, pp- 295-300 5 Pandey M.M.(2009), Country Report: India, Indian Agriculture- An Introduction, Central Institute of Agricultural Engineering, The country report – India prepared by Prof. Pandey, Bhopal submitted to fourth session of Technical Committee of APCAEM during July, 2009 at Chaing Rai, Thailand

32

level, farm power availability drainage technology, energy in agricultural, the

performance of agro-processing industries and present status in Indian agriculture also

shown. Lastly, he concluded that Indian agricultural has evolved into a nature and

modern enterprises over last five declare. Farm mechanization programmes pursued in

the country after attaining independence were directed towards optimal utilization of

available farm power sources. The impact of tractorization as against oxidization is

evident from the fact that India is the largest producer of tractors in the world. Increase

in cropping intensity, timeliness of operations and reduction in drudgery have shown to

the needed incentives for farmers and farm workers to adopt modern methods of

cultivation. An increase of 15 % in productivity and a reduction of 20% in cultivation

crop can be achieved by engineering interventions. Those interactions have been limited

to a few field corps, farm operations and post harvest activities. There is an urgent need

to extend it to the entire gamut of agricultural production in the country.

P. Kumar and others6 (2008) attempted to account agricultural growth and total

factor productivity in South Asia. According to them, productivity growth in agriculture

is essential for the development of the sector. Their study has reviewed the development

in agricultural productivity related to south Asian countries. The total factor productivity

growth and its contribution in production growth have summarized for the Asia over the

last three decades (1980-2000). A discussion and synthesis of changes in TFP and its

sources of growth for the major crops, major crops systems, crops and livestock sectors

for the countries of south Asia have also presented in their study. An attempt has made to

give policy implications on accounting agricultural growth and TFE and they have out

lined into the sub levels like 1) Arresting declaration in total factor productivity. 2)

Enhancing yield of major commodities 3) Accent an empowering the small famers. 4)

Environment protection and largely standing of national agricultural research system.

6 Kumar P., Mittal S. and Hossain Mohabub, (2008), Agricultural Growth Accounting and Total Factor Productivity in South Asia : A Review and Policy Implication, Agricultural Economics Research Review, Vol. 21 July- December, pp 145-172

33

Hirashima S.7 studied the ‘issues in agricultural reform: public investment and

Land market development. His study examined the emerging issues of indian agriculture

in the contest of global integration. He has taken two important issues namely pubic

investment and land market developments for the study. He examined variables like,

GDP & capital formation, in Agri concentration of Irrigation, contribution to DDS, per

capita SDP, foodgrain production, Investment in public irrigation, rent, land price etc.

The major findings are as since the 1980 a pubic investment in agriculture has been

declining. This trend has no been offset increase in private investment there by the

overall level of investment in agricultural in terms of GDP and GDP of agriculture has

continued to decline. The public investment particularly in irrigation concentrated in for

states namely Punjab, Haryana, Uttar Pradesh, and Andhra Pradesh. The high ratio of

these states should be compared to other states. His study also showed that, the

consumption of electricity per hectare public investments could be justified by the

contribution of these sates to the public distribution system.

In case of trends in per capita SDP form 1980-81 to 1996-97, out of 16 states

examined three states improved and four stagnated. However, income fell relative to

Punjab, the most prosperous state in India, in as many as nine states and many of them

are located in the eastern part of India. The finding on cost effectiveness of public

investment in Indian states shows that, the states with high priority happened be the states

whose income position were deteriorating, namely Assam, West Bengal, Orissa, Bihar,

Kerala, U. P. and M. P. The performance of each state in terms of foodgrain production

shows that some of the states whose income had declined increased their production. It

implies that the response to stimulate would be great in those states than others.

Balkrishnan P.8 Ramesh Goliet and Pankaj Kumar (2008) studied the agricultural

growth in India since 1991. Their study addressed on the slow growth of Indian

7 S. Hirashima (2000),Issues in Agricultural Reforms, Public investment and Land Market Development , Economic and Political Weekly, Mumbai, October 8, 3879-3922 8 P Balkrishnan and Others, (2008), Agricultural Growth of Since 1991, Department of Economic and Policy, Reserve Bank of India, Mumbai

34

agricultural sector since 1991. They took into consideration relevant variables to study

agricultural growth for the study period. The first was about the agriculture and economic

reforms. They argued that, there is nothing intrinsic to the policy of liberalization of an

economy in the form of trade and industrial policy reforms that most be damaging of

agricultural. The second section deals with the growth of agriculture since 1991. They

showed the percentage growth of area, product and yield from 1950-1951 to 2005-06.

The third section focused on the prices and the recent agricultural growth. They examined

some variables like relative price movement, the role of import liberalization, import

penetration. The fourth section was about the non-price factors and recent agricultural

growth. The non-price factor like capital formation, land holdings, expansion and public

expenditure on Irrigation, public research and extension activities examined by the

researcher and lastly they concluded and made some policy implication.

Hatal and Sen9 (2008) worked on economic analysis of agricultural sustainability

in Orissa. They have calculated the sustainable livelihood security index for agricultural

sustainability and evaluated present status of the agricultural development. Their whole

study was based on Swaminathan’s dimension. According to Swaminathan sustainable

agriculture integrates three main goals that, environmental health, economic profitability

and social equity. The Orissa state has been selected since it focus wide inequality,

management and over, exploration of natural resources and explosion of population.

Based on Swaminathan’s dimension and existing states of Orissa state, they have

calculated three-index viz. Ecological Security Index (ESI) Economic Efficiency Index

(EEI), and Social Equity Index and analyzed economically agricultural sustainability.

They found that the values of sustainability ranged from 0.14 to 0.68 for ESI, 0.07

to 0.75 for EEI and 0.21 to 0.70 for SEI. These results show that the agricultural system

of all districts in Orissa display wide variations in that ecological, economic and social

equity aspects. According to their suggestion, if the ecological security index (ESI) of a

9 Hatai L.D. and Sen C. (2008), An Economic Analysis of Agricultural Sustainability in Orissa, Agricultural Economics Research Review, Vol. 21 July- December, pp 273-282

35

given district has lower values than those of other two indices, then afforestation, agro

forestry, cultivated area, productivity enhancement, and livestock development should be

accorded higher priority over the economic and social orientation programmes. If social

equity index (SEI) of a certain district has a lower values as compared to ESI and EEI

values, then attention towards equity enhancing for better equation health facilities,

sanitary living environment and rural infrastructure for the road connectivity and

electrification should be given a higher priority.

Chengwu Liu and Xiubin LI10 (2006), studied the regional disparity in the

changes of agricultural land use intensity in China during the 1980-2002. This paper is

based on the cost-benefit data (1980-2002) of farm products and China yearbooks. The

present study takes into consideration three aspects, as the degree of intensity, the sown

area and the abounded farmland. While reviewing this article, one note should be

considered that, china is a large country with high population between limited farmland,

so grain security is always remained strategic issue. Therefore this study of land change

and its driving mechanism has becomes one of the important research area of Global

Environmental change research. Their main findings are the degree of intensity of land,

in the western region during the study period has a strong uptrend, but in the eastern and

central regions, the degree of intensity descends obviously and has shown a continuous

downward since 1997. The total sown area shrinks notably in the eastern region, while it

enlarges constantly in the western region has gone through a similar cyclic process: down

(1980-89)- up (1985-91) – down (1991-94) – up (1994-99) – down (1992-2002).

However, there are obvious differences in amplitude variation and tendency among them.

The sown area shrunk in the eastern region and expanded in the central and western

region especially before 1999. Further, they found that, the most cases of abandoned

farmland are reported in the central region, the second in the eastern region and the least

in the western region.

10 Liu Chengwu and Li Xiubin (2006), Regional Disparity in the Changes of Agricultural Land Use Intensity in China during 1980-2002, Journal of Geographical Sciences, Vol 3, pp 286-292.

36

Joshi P. K. and others11 (2004) studied the agricultural diversification in south

Asia. They studied patterns, determinants of agricultural diversification and assessed

policy implications on food security, employment and use of natural resources. Their

study intends to examine the extent, nature and speed of agricultural diversification. It is

confined at two levels, macro level and meso level (Between the Macro & Micro).

According to them, there are several indexes explain either concentration or

diversification of commodities or activities in a given time and spare by a single

indication but the SIMPSON INDEX is selected by then due to it provides a clear

dispersion of commodities in geographical region. They found that, the Simpson index of

diversity for South Asia was 0.64 in 1999-2000 from 0.59 in 1981-82 which shows that

South Asia is gradually diversifying its crop sector in favour of high value commodities.

Moreover, productions of fruits, vegetables, livestock, and fish products have increased

remarkably in the most of the South Asia countries. Due to their low share in gross value

of agricultural output, the silent revolution was noticed. They suggest that, to speed up

the process of agriculture diversification of high value commodities, the South Asia

countries need to take series of measures to reform institutional arrangements, which can

appropriately integrate production and markets. Moreover, among other immediate

measure include ensuring market, developing roads, creating appropriate infrastructure,

encouraging private sector participation for value addition, and processing. He argued

that, South Asia countries are gradually diversifying with some inter-country variation in

favour of high value commodities. Agricultural diversification is influenced strongly by

price policy, infrastructure development, urbanization and technological improvements.

Chand Ramesh and Raju S.12 (2007) have studied about the instability in Andhra

Pradesh agriculture. They argued that, instability in farm product is causing series shocks

to supply and farm income and there is a growing concern about increased volatility in

11 Joshi P. K. and others, (2004), Agricultural Diversification In South Asia- Pattern, Determinants and Policy Implications, Economic and Political Weekly, Mumbai, June 12, pp-2457-2467 12 Chand Ramesh and Raju S (2007), Instability in Andhra Pradesh Agriculture- A Disaggregate Analysis Agricultural Economics Research Review, Vol. 21, July- December, pp 283-288

37

farm production, prices and farm income. Their study estimated instability in major

crops in Andhra Pradesh during the before and after initiation of economic reforms.

Instability was associated with selected crops was estimated by using the instability

index. Their study revealed that, in a large state like Andhra Pradesh, and which is the

case for most of the states in India, the instability states as perceived through the state

level data may be vastly different from that experienced at the disaggregate level. They

concluded that the state level analysis dose not reflect complete picture of shocks in

agricultural production and further shocks in production under estimates shocks in farm

income. At the end, they suggest that, the need for addressing risks in farm income by

devising area-specific crop insurance or other suitable machines.

Narayanmurthy A. and Deshpande R. S13 (2003) studied an Irrigation

Development and Agricultural Wages. Their study is an analysis across the states where

irrigation development taken place and it’s influence on agricultural wages. Apart from

the neoclassical demand supply framework, they have considered future different

approaches to the theory of wage determination. They are Liebenstein (1958), Rodgers

(1975), Deolikar (1988), and Lindbeck and shower (1988). The study covers 17 major

states of India. They have considered at the five points of time for the study. The multiple

regression equation has estimated by the authors using state wise cross – section data

pertaining to five points to time. An effort has made in the study to find out the impact of

irrigation an wage rates, for both male and female. Results of the study show that, there is

positive and significant relationship between the availability of irrigation and the real

wage rate of agricultural labourers. The wage rate of agricultural labourers belonging to

relationally density-irrigated states is closer to or above the minimum wages set by the

government when compared to the states with low irrigation facility. Moreover, they

found that, gender wise gap has been narrowing down at a faster rate in the states where

the level of irrigation is higher.

13 Narayanmurthy A. and Deshpande R. S, (2003), Irrigation Development and Agricultural Wages: An Analysis across States, Economic and Political Weekly, 30 August, pp 3716-3722

38

Subrahmaniyam and Sehkar14 (2003) examined the pattern of agricultural

development of Andhra Pradesh and suggest a prospective for the first decade of 21st

Century. The growth of agriculture since 1950 is reviewed in terms of production, total

factor productivity, expansion of irrigation, investment in agriculture and rise in fertilizer

use. The growth potential of the sector analysed by examining the scope for increasing

net area sown and yields of various crops. They found that, the 1970’s period was a broad

based growth across regions and crops. The 1980’s was the period of shifts in cropping

pattern from low valued to high valued crops. The decade of 1990’s witnessed

declaration in the growth rates of yields of all major crops. The state has the potential for

achieving a growth rate of 4.6% per annum in the next 10 years.

Balkrishnan P.15 (2000) studied about the agriculture and economic reforms in the

context of growth and welfare. This paper provides an overview of the principal

development in the agricultural sector since 1991 and of their likely consequences for the

standard of living. The paper has conceived more with a view to raising essential

questions than providing complete solutions. He agreed that, Indian agriculture appears

twice blessed. Not only do agricultural producers receive subsidies visible in the case of

fertilizers and invisible in case of water and electricity, but they don’t pay direct taxes as

do industrial firms. Further, he says, if we have to explore the things about how

agriculture has responded to the changes in the economic policy regime, then there is

need to concentrate an agricultural output alone. He explained the quotations in speeches

of economists and introductory explanation of agricultural growth and public welfare. To

assess the agricultural growth he took into consideration two main variables, output and

price. He found, the 1980’s showed a rise in the rate of output growth, the expansions in

the high yielding variety, irrigated area and public investment have all showed relative to

their pace of expansion in the 1970’s. He focused also on welfare of non-agriculture

14 Subrahmaniyam S. and Sehkar P. (2003) Agricultural Growth: Pattern and Prospectus, Economic and Political Weekly, 30 August, pp 1202-1211 15 Pulapre Balkrishnan (2000), Agriculture and Economic Reforms: Growth and Welfare, Economic and Political Weekly, Mumbai, March 18, pp-999-1004

39

population. The production is the poor measure of welfare which is really what we are

ultimately interested in. According to him, an evaluation of the Public Distribution

System in relation to the overall requirement for found security would reveal that its role

is quite limited constitutionally even; a widespread coverage of the PDS cannot take

away from the fact that the prevention of inflation is after all a second best policy.

Catriona Purfeilds16 attempted to examine how the growth and economic

performance have varied across Indian states over the past 30 years. Is economic growth

in India leaving some states behind? The article brings out the facts about economic

performance of states, like the gap in real per capita income between rich and poor states,

have widened over time; rich and faster growing states have almost failed to generate

private sector employment labour and capital flow are less effective to reduce regional

disparities, and poor states experiencing greater volatility in economic growth. He has

examined the link between state level policies and economic growth. The analysis

presents evidence that state level policies are a key factor influencing the pattern of

economic growth across states. This implies that states can influence the relative

economic performance and accelerate convergence through their policy choices.

Economic reforms and their impact on agriculture sector have studied by

Thamarajakshi17 (1999). According to her, it is time that efficiency consideration prevails

in public spending in agriculture and market signals allowed to come into full play so that

changes in agricultural investment and production are demand driven in response to

domestic and international prices. She has mainly paid attention on investment in

agriculture, gross capital formation in agricultural sector, sector wise contribution in GDP

and index of value of value added per worker, real wages of agricultural labourers and

poverty, during the port reform period. The period for this study has considered from

1985 to 1997 with two-sub period since 1985 to 91, 1991 to 1997. She argued that,

16 Catriona Purfeilds (2006) Mind the Gap- Is Economic Growth in India Leaving Some States Behind?, International Monetary Fund, Washington, USA 17 R. Thamarajakshi (1999), Agriculture and Economic Reforms, National Seminar Proceeding on Ninth Plan- Challenges and Strategies, Indian Economic Association Trust for Research and Development, pp 2393- 2395

40

agriculture is basically a private activity. The public investment has a critical role to

play in creating the infrastructure in terms of irrigation roads, markets, storage facilities,

electrification and technology development besides education and health. There is need

of implementing a reform agenda for agriculture comprising enlarged productive

investment by public sector for agricultures infrastructure and market based pricing

system for agricultural outputs and inputs. Moreover, despite large food subsidy and

massive expenditure on anti-poverty programmes, rural poverty has not significantly

declined. She suggested that, the role of government is to focus on productive

investments, technology and research marketing, storage and agro processing facilities

and provision of food safety nets for the vulnerable poor and development of a diversified

agriculture in line with emerging demand patterns.

Narayanmurthy A.18 (2007) attempted to find out the factors responsible for

deceleration in agricultural growth. He mainly focused on two important variables as

technology fatigue and policy fatigue. He argued that, the poor performance of

agriculture is not because of “technology fatigue but mainly because of policy fatigue.”

According to him, efforts have made to increase the production of cereals that lead to

become self-sufficient. He put a question ahead and explain, are we self sufficient in

other crops? Be one may not be able to immediately say yes to this question, India has

been importing large quantities of pulses from various countries over many years because

there is absolute “technology failure” in pulses crops. He could get the results that

technology fatigue is not but policy fatigue is responsible for the present agricultural

crisis. He focused that, farmers were unable to recover even the cost of cultivation

because of the faulty pricing policy. The cost of cultivation has been increasing over the

year because of the increasing in wage rate of labour, input prices and other managerial

costs, during the 1975-76 and 1985-86. The increase in cost of cultivation in most of the

crops were relatively less than the increase in the value of output, meaning that the

farmers were able to get back the cost of cultivation. The situation completely changed

18 A Narayanmurthy, (2007), Deceleration in Agricultural Growth, Economic and Political Weekly, Mumbai, June 23, pp-2375-2379

41

during 1985-86 to 2001-2002. They cost of cultivation increased substantially in all the

major crops.

In case of capital formation in agriculture which is decreasing continuously both

in absolute and in relation to agricultural GDP. He gave another example of policy

fatigue, agricultural credit. During the 1981-1991, growth of institutional credit to

agriculture was about 6.64% but the same declined to 2.16 percent during the 1999.

There is another example of policy fatigue and that is irrigation. The net irrigated area has

increased substantially from 20.58 MH in 1950-51 to 53.0 MH in 1994-95, there is no

appreciable improvement in it since the mid 1990’s because of adequate allocation of

funds required for completing on going projects and poor monitoring of irrigation

projects by the state agency. He suggested that, Remuneration from the crop cultivation is

the key problem. Unless this addressed immediately, we may not be able to rescue

agriculture from its current sludge.

Ali Asghar and others19 attempted to study of productivity growth of agriculture

in Pakistan from 1971 to 2006.They estimated the total factor productivity of agricultural

sector in Pakistan, annual time series data of output produced and inputs used in the

productions process were collected for the period from 1971 to 2006 by them. They

found that, total factor productivity of agriculture grew at an average, annual rate of

2.14% during the 1971-2006. This TFP growth indicates for about 56% to total

agricultural output growth during the study period and remained 44% was contributed by

input growth. Moreover, they estimated, 2.3% annual average growth rate of agriculture

for the period 1960 to 1996 and obtained 58% contribution of TFP growth in agricultural

output growth. They suggest that, reliance on the magnitude of inputs be minimized and

emphasis should be given to improve TFP of agriculture by increasing efficiency of

resources use and break through in technology. Agriculture sector has the tendency to

absorb the shocks either positive or negative. So, injection in agriculture sector should be

19 Ali Ashgar, Mushtaq Khalid, Ashfaq Muhammad, Arifraja Muhammad (2009), An Analysis of Productivity Growth of Agriculture in Pakistan : 1971-2006, Journal of Agricultural Resources, Vol- 4, pp 439-450.

42

continued an regular basis for sustainable TFP growth through introducing new

technologies and without deteriorating the quality of resources.

Christoplos and John20 (2004) edited book of Poverty, Vulnerability and

Agricultural Extension: Policy Returns in a Globalizing World. This volume is based on

five case studies from the developing countries of Asia, Africa and Latin America, which

was funded by the UK department for International Development. The volume contains

various issues examined in the five case studies and addition to main issues of poverty

and vulnerability the role and scope of agricultural extension services in attending to

these two core issues poverty in the value implies the inability to achieve a minimum

level of consumption due to lack of power and entitlement of resources. According to

them, five case studies Pro-poor extension must be constructed so that it affects

livelihood of the poor based on their roles as producers, labourers, and consumers. The

lessons of five case studies have certain commonalities. Everywhere, there are lot of

opportunities and challenges for making agricultural extension services pro-poor. There

are no signs of addressing market failure in the isolated and conflict proves areas of the

country. There have been efforts to involve private extension providers in agriculture

during the 1990’s but their present activities remain skewed towards the well-endowed

regions and well of farmers. They have made certain common suggestions. A forceful

plea should make to broader extension services for agriculture to include rural

development to help the poor especially for poverty alteration, vulnerability reduction.

The authors of five core studies show preference for NGO’s and decentralized

governance in rural development. The failure of extension services is attributed to limited

coverage and administrative weakness.

Haque T21 (2003) studied on reforms for Agricultural growth and rural

development. He focused on contract farming, land sharing which can accelerate the

20 Ian Christoplos and John Farrigton (2004), Poverty, Vulnerabilty and Agricultural Extension: Policy Returns in a Globalizing World, Oxford University Press, New Delhi 21 T. Haque (2003), Reforms for Agricultural Growth and Rural Development, Economic and Political Weekly, Mumbai, November 29, pp-5031-5033.

43

agricultural growth. According to him, the contract farming arrangement is win-win

situation for both the company and contract farmers. The farmers benefit due to

improvements in yield and income because of his access to technology quality inputs,

assured price, and market support. Similarly, the company gains from assured supply of

pre-agreed price. The existing laws are governing land leasing in various regions should

be reviewed, simplified and liberalized in order to promote both agricultural efficiency

and equity. Moreover, he suggests that, land leasing policy should be such as to promote

contract farming so that small framers should benefit from the adoption of new

technology and assured market provided by the company.

Vaidyanathan A.22 (2000) wrote on India’s Agricultural development policy. He

tried to explore the answer of critiques made by the public and others. They were, impact

on food consumption, rural inequalities, and the government policies affect an incentive

to growth. The key issues for future agricultural development policies have discussed. he

suggested future strategies some of are like, it needs to be recognized that, while

production of crops and animals continue, to be almost entirely in the private sector, the

development and management of common pool resource like water and to some extent

even land cannot be privatized. There are number of areas like well irrigation, transport,

marketing and processing in which private sector will be dominant. In these spheres as

well as in areas where autonomous non-governmental institutions play an important

because it is essential to have well defined rules and regulations to check monopoly

ensure fair trading practices and define principle of fair sharing of common pool

resources, across to common property resources and sharing of costs and benefits of

exploiting them. Moreover, the public sector organizations involved in these activities

need to be restructured in ways which are conducive to efficiency and accountability.

22 A. Vaidyanathan (2000), Special Article, India’s agricultural Development Policy, Economic and Political Weekly, May 13, pp- 1735-1741.

44

Balkrishnan P.23 (2000) studied about the agriculture and economic

reforms in the context of growth and welfare. This paper provides an overview of the

principal development in the agricultural sector since 1991 and of their likely

consequences for the standard of living. The paper has conceived more with a view to

raising essential questions than providing complete solutions. He agreed that, Indian

agriculture appears twice blessed. Not only do agricultural producers receive subsidies

visible in the case of fertilizers and invisible in case of water and electricity, but they

don’t pay direct taxes as do industrial firms. Further, he says, if we have to explore the

things about how agriculture has responded to the changes in the economic policy

regime, and then there is need to concentrate an agricultural output alone. Before the first

section, he explained the quotations in speeches of economists and introductory

explanation of agricultural growth and public welfare. To assess the agricultural growth

he took into consideration two main variables, output and price. He found, the 1980’s

showed a rise in the rate of output growth, the expansions in the high yielding variety,

irrigated area and public investment have all showed relative to their pace of expansion in

the 1970’s. He focused also on welfare of non-agriculture population. The production is

the poor measure of welfare, which is really, what we are, ultimately interested in.

therefore, the public distributing system taken into consideration by the author.

According to him, an evaluation of the Public Distribution System in relation to the

overall requirement for found security would reveal that its role is quite limited

constitutionally even, a widespread coverage of the PDS cannot take away from the fact

that the prevention of inflation is after all a second best policy.

2.3) Literature related to the Growth and Disparity in other Sectors

Kurian N. J.24 studied about widening economic and social disparities:

Implications for India. He noted that, India suffers from acute economic and social

23 Pulapre Balkrishnan (2000), Agriculture and Economic Reforms: Growth and Welfare, Economic and Political Weekly, Mumbai, March 18, pp-999-1004 24 Kurian N. J. (2007), Review Article, Widening Economic and Social Disparities: Implication for India, Council for Social Development, New Delhi.

45

disparities. His article addressed four dimensions of such disparities viz. regional,

rural-urban, social and gender. Because of economic reforms, the southern and western

states experienced accelerated economic and social development as a compared to

northern and Easter states. This has led to widening gap in income, poverty and other

indicator of development between the two regions. The rural-urban divide widened in the

wake of reforms. White large and medium cities experience unperfected economic

prosperity the rural areas experience economic stagnation. As a result there is a

widespread agrarian distress which results in farmers suicides. He has also noted about

social and gender disparity. Kurian N. J. has more stressed on regional disparity, but it

has not showed inter-regional disparity in particularly agricultural development. He has

shown regional disparity in overall economic development.

Shaban Abdul25 has made efforts to study the regional structures, economic

growth and convergence of income in Maharashtra. He stated that overall, high economic

growth and developments in the state, all is not well with the economy as obsession with

economic growth and generation of wealth has led to the relative neglect of distributional

aspects. He has frequently been stated that, if greater Mumbai and Pune division are

taken out the rest of Maharashtra would not be better than the BIMARU states. He

attempted to examine the trends in regional inequality in sectoral as well as aggregate per

capita income in Maharashtra. Moreover, he discerned the regional structures of income

and the composition of regional income in the state. While discussing about the regional

structure and income he stated that, the composition of the state income has changed

much more in favor of the tertiary sector, which presently accounts for about 60% of the

NSDP, while the primary sector has got further marginalized, accounting for less than

13% of the total income in the state in recent years.

He adopted relative and appropriate methodology for the study based upon

secondary data for the period of 1993-94 to 2002-03. Before 1993 there were only 30

25 Shaban Abdul (1906), Regional Structures, Growth and Convergence of Income in Maharashtra, Economic and Political Weekly, Mumbai, May 6, pp 1803-1815

46

districts in the Maharashtra but after that 5 newly districts have added. In order to

maintain the comparability of the data of spatial units, the data for usually created

districts have been clubbed with their parent districts by the researcher. He found that, the

Konkan region has been the highest development region followed by the western

Maharashtra, Vidarbha, and Marathwada. The growth of regional economies in the state

is mainly led by the tertiary sector. The share of the secondary sector is stagnating while

that of the primary sector has been declining. In comparison to 1993-94, the inequality in

per capita districts income has decreased in 2002-03. However, inequality in the

secondary sector with respect to per capita income is higher than other sectors and the

aggregate income, albeit the inequality in this sector has declined higher than other

sector. Most important finding that must be presented here that, giving a boost to

economies of regions of interior and backward districts like Parbhani instead of Greater

Mumbai, Pune or Nagpur, would be more beneficial for balanced regional development

of the state. It is likely that most of the benefits due to investment and development in

Greater Mumbai and Pune would remain concentrated in the Konkan and Western

Maharashtra region which are already highly relatively developed regions in the state.

Singh N. and others26 have examined regional inequality in India. Moreover, they

examined trends behavior in of economic development at the state level. They concluded

that, there are concerns that regional inequality in India has increased after the economic

reforms. This concern supported by various statistical analyses. Their conclusions are

very sensitive to what measures of attainments have used in particular HDI don’t show

the same increase in regional inequality, further more, looking at the consumption and

credit indicators for regions disaggregated below the state level also suggested that,

inequality trends may not be as bad as suggested by state domestic product data.

Moreover, there are some indications of increases in regional inequality but they are

neither uniform nor overly dramatic. To some extent increases in regional inequality are

26 Singh Nirvikar, Bhandari,Lahrin, Chen Ayon and Khare Aarti (2003), Regional Inequality in India: A Fresh Look, Economic and Political Weekly, Mumbai, March 15, pp. 1069-1073

47

driven by factors that are necessary for accelerated growth in particular the more

efficient allocation of private capital foreign as well as domestic.

Wu Yanrui27 (2006) attempted to examine economic growth in the Chinese and

Indian regions over the period of 1980 to 2007. It also assessed regional disparity in the

two countries and investigated whether there is any evidence of regional convergence

during the periods of rapid economic growth. They also attempted to identity the sources

of regional disparity. He used regression analysis to explain the sources to regional

disparity. He concluded that, regional economic development in China and India is

unbalanced. Relatively more developed regions in both countries have forged ahead with

no evidence of catch up by the backward regions. As a result, regional disparity has

deteriorated thought the two countries enjoyed unpretended growth over the 2001.

Moreover, the gap between the super rich regions and the rest of the economy in both

countries has evidenced since the early 1900’s. He found that, while regional disparity in

general more severe in china and India, it is rising fast in India than in China in recent

years. He suggested that, the Chinese government is now fighting hard to reduce regional

disparity and build harmonious society. India would face the same problem if the current

trend of rising disparity continued. While studying about the sources of regional

disparity found, variations in urbanizations and infrastructure are major contributors to

regional disparity. Over this finding, he suggested that both countries have to build more

infrastructure and speed up urbanization and they should aim for a more balanced

strategy among the regions.

Kundu Amitabh and others28 studied about the regional distribution of

infrastructure and basic amenities in urban India, According to them a state and size class

wise analysis of the levels of urban basic amenities reveals that disparities are extremely

27 Wu Yanrui (2006), Regional Growth, Disparity and Convergence in China and India: A Comparative Study, Proceeding of International Conference on Emerging China: Internal Challenges and Global Implications, 13-14, July, Victoria University, Melbourne 28 Kundu Amitabh Bagchi S. and Kundu Debolina (1999), Regional Distribution of Infrastructure and Basic Amenities in Urban India, Economic and Political Weekly, Mumbai, July 10, pp 1893-1906,

48

high in the nineties. They used population census, NSSO reports, policy and project

documents and performance assessment of the organization operating on the urban sector.

The availability of selected infrastructure and amenities like water supply, toilets,

electricity in urban has been analyzed at the state level. The analysis has carried out

across size class of urban settlements. To done it, they have built comparable indicator

for the early eighty, late eighty and early nineties, and made comparative assessments.

Further, an attempt has been made by them to identify social-economic factors that

explain spatial variation. They overviewed the changes in the organizational and

financing system for the provision of infrastructure and basic amenities, and the efforts

made it recent years. They also examined the problems and made policy guidelines.

They found that, the level of inequality in the provision of basic services across

the states and size categories of urban centers are extremely high. The investments for

the developments of infrastructure and provision basic services have been spatially

balanced during the past few decades. Planners and policy makers have made case to

make the para stated agencies depends increasingly on their internal resources and

institutional finance with the objective of bridging in efficiency and acceptability in their

functioning furthermore, the poor are likely to get priced out of the various schemes that

are being launched within the private and joint sector. Moreover, the capacity of the state

or local government to generate employment directly through anti-poverty programmes

would remain limited. The experiences suggested that there have been considerable

leakers in the self-employment programmes. Banks and other financial institutions have

been unwilling to give loans to the poor as the risk to non recovery is very high. More

importantly, much of the subsidized amenities provided through the governmental

programmer during the seventies and eighties have done to a few large cities and

benefited mostly the high and middle-income colonies. They suggested that, the state

government should take the overall responsibility of ensuring the basic amentias to all

sections of population in different size class of urban centers, irrespective of their income

or a affordability. Constitutional amendment for decentralization of financial powers is

not sufficient of augmenting resources of the local bodies. This must be backed up by

actual devolution of powers and responsibilities and their use by municipal bodies.

49

Moreover, new programmes must be designed to cover the entire urban and all

vulnerable sections of population.

Suryanarayana M. H.29 has studied on inter state economic disparities in

Karnataka and Maharashtra, addresses issues related to dimension and measures of

economic disparities from the perspectives of the finance commission. He discussed

relevant issues in his study like what does the term economic refer to? Does one measure

it with reference to input, output, outcome or final product? What is the policy relevant

issue disparity, inequality or both? What is the level of analysis Macro? Micro or sectoral

(primary, secondary and tertiary) or Regional? What is the unit of analysis; production,

household or person? This study proposed to examine economic disparities with

reference to outcome measure like income generation and consumption distribution. He

used Kuznet’s framework to study the extent of economics disparities and inequalities in

the states of Maharashtra. Moreover, he employed three important statistical techniques

such as coefficient of broad based income distribution, Inclusive coefficient and mean

elasticity of median to explain the measures of economic disparity. His study shows the

extent of deprivation at the state, regional and district level. While standing district wise

level of NSDP in Karnataka and Maharashtra, he made four groups like poorest quarter,

lower middle quarter, upper middle quarter and richest quarter.

The major findings can sum up further. He found that Karnataka falls just above

the median in a rank ordered profile of Indian states in terms of per capital income. The

differential growth performance across these sectors (Primary, Secondary & Service)

depending on their relative dominance has a cumulative impact on the level of income

across district. Moreover he mentioned that, Karnataka is marked by regional

imbalances. The city of Bangalore alone accounts for 29% of the state income; it enjoys

a per capita income for times greater than that in the poorer district i.e. Bidar. Northern

Karnataka is relatively backward in economics as well as non-economic dimensions and

29 Suryanayana M. H. (2009), Intra-State Economic Disparities: Karnataka and Maharashtra, Economic and Political Weekly, Mumbai, June 27,p.p 215-223

50

there is a concentration of deprivation. In case of Maharashtra, growth is confirmed

largely to the non-agricultural sectors located in urban district like & Mumbai. This has

sharpened inter district disparities. The four urban districts of Mumbai, Thane, Pune and

Nashik account for the half of the states income; the other half is shared by the remaining

31 districts, where deprivation is quite pronounced. Lastly, he concluded that, the two

case studies provide empirical evidence to show that through mean based estimates of

average income reveal the two states to be relatively better off than the nation as a whole,

both of them worked by pronounced inter-regional disparities, interpersonal inequalities

and intra-regional deprivation. Such scenario sets limit on the potential resource

mobilization and makes a case for investments strategies that promote broad based

inclusive growth across all regions at the state level.

Hirashima S.30 studied the ‘issues in agricultural reform: public investment and

Land Market Development. His study examined the emerging issues of indian

agriculture in the contest of global integration. He has taken two important issues namely

pubic investment and hand market developments for the study. He examined variables

like, GDP & capital formation, in Agri concentration of Irrigation, contribution to DDS,

per capita SDP, foodgrain production, Investment in public irrigation, rent land price etc.

The major findings are as since the 1980 a pubic investment in agriculture has been

declining. This trend has no been offset increase in private investment there by the

overall level of investment in agricultural in terms of GDP and GDP of agriculture has

continued to decline. The public investment particularly in irrigation concentrated in for

states namely Punjab, Haryana, Uttar Pradesh, and Andhra Pradesh. The high ratio of

these states should be compared to other states. His study also showed that, the

consumption of electricity per hectare public investments can be justified by the

contribution of these sates to the public distribution system.

30 S. Hirashima (2000),Issues in Agricultural Reforms, Public investment and Land Market Development , Economic and Political Weekly, Mumbai, October 8, 3879-3922

51

In case of trends in per capita SDP form 1980-81 to 1996-97, out of 16 states

examined three states improved and four stagnated. However income fell relative to

Punjab, the most prosperous state in India, in as many as nine states and many of them

are located in the eastern part of India. The finding on cost effectiveness of public

investment in Indian states shows that, the states with high priority happened be the states

whose income position were deteriorating, namely Assam, West Bengal, Orissa, Bihar,

Kerala, U. P. and M. P. The performance of each state in terms of foodgrain production

shows that some of the states whose income had declined increased their production. It

implies that the response to stimulate would be grate in those states than that.

Balkrishnan P.31 Ramesh Goliet and Pankaj Kumar (2008) studied the agricultural

growth in India since 1991. Their study addressed on the observed slow growth of Indian

agricultural sector since 1991. They took into consideration many variables to study

agricultural growth for the study period. The whole study is divided into five sections.

The first was about the agriculture and economic reforms. They argued that, there is

nothing intrinsic to the policy of liberalization of an economy in the form of trade and

industrial policy reforms that most be damaging of agricultural. The second section deals

with the growth of agriculture since 1991. They showed the percentage growth of area,

product and yield from 1950-1951 to 2005-06. The third section focused on the prices

and the recent agricultural growth. They examined some variables like relative price

movement, the role of import liberalization, import penetration. The fourth section was

about the non-price factors and recent agricultural growth. The non-price factor like

capital formation, land holdings, expansion and public expenditure on Irrigation, public

research and extension activities examined by the researcher and lastly they concluded

and made some policy implication.

31 P Balkrishnan and Others, (2008), Agricultural Growth of Since 1991, Department of Economic and Policy, Reserve Bank of India, Mumbai

52

P. Pal and J. Ghosh32 (2007), attempted to study the inequality in India. Their

study analyzed the nature and causes of the patterns of inequality (disparity) and poverty

in India. They stated that, macro economic policies possibly responsible for those trends

include, fiscal tightening, regressive tax policies and the expenditure cuts; financial sector

reforms that reduced institutional credit few to small producers and agriculturists. They

examined the trends in income and consumption in rural & urban India. They also

examined regional inequality by using Gini coefficient for rural and urban areas different

states in India. The inequalities in poverty trend, employment growth in agriculture,

health, education and nutrition has measured by using the secondary data from 1983 to

2000. At the last, they pointed out that inequality has increased due to fiscal policy

financial sector reforms, liberalization of foreign & domestic investment and trade

liberalization.

K.R.G. Nair33 (2004) study focuses on economic reforms and regional disparities

in economics and social development in India. It is the research project report which was

founded by the planning commission, Govt. of India. A broad comparison between the

pre and post reforms periods in his study reveals some interesting facts of regional

change. Manufacturing industry has almost since times immemorial, been looked upon as

panacea for the developments of the backward regions in all part of the world, including

India. Moreover, the regional disparities in agriculture and allied sectors, while these

seems to have been some inter-state convergence in the pre-reformer era, there are no

indications of any kind of convergence in post reform era. A closed look at the evidence

offers poor solace since there are large decline in relatives in Human Development Index

in those states of India that are at the bottom from the point of view of almost all

indicators of economic development. In the context of NSDP & employment at the

regional level between the pre & post periods gives a broad indication about such a

logical connection. While growth of employment and of NSDP had positive and

32 Pal and Ghosh (2007), Inequality in India : A Survey of Recent Trends, Indian Institute of Management, Calcutta 33 Nair K.R.G.(2004), Economic Reforms and Regional Disparities in Economic and Social Development in India, Centre for Policy Research, New Delhi

53

significant correlation in the pre-reform era there is some evidence almost pointing to

the country for the just reform era.

Bhalla G. S.34 (2006) in his book entitled, Indian agriculture since independence

has reviewed the state wise agricultural growth performance in India since independence.

According to him Indian agriculture that experienced a very low growth during the first

half of the both century before independence recorded a significant acceleration in

growth and productivity after independence. Moreover, the growth performance was

truly credible after the new seed fertilizer technology matured during the nineteen

eighties. This book tried to identity the main factors that were instrument in accelerating

agricultural growth after freedom. These included implementation of land reforms, large

planned investments in the development of agricultural science research and technology

and extension services and introduction of new positive price police after mid-sixties.

Lahiri A. and Mu Yi Kei35 (2004) studied the problem of regional disparity in

India, entitled, A tale of two states, Maharashtra and West Bengal. The objective of this

study was to understand the relative decline of West Bengal and to shed light on the

broad output and factors markets that may be the key sources of the decline. Further, they

argued that, the present examination is a necessary first step to the ultimate goal of

ascertaining the state specific policies, institutions, or degree of implementation of

national policies that may be the root courses of West Bengal’s under performance. They

employed growth and levels accounting framework to calculate the broad sources of

growth in each state as well as the sources of differences in per capita income. Moreover,

they used a standard neo-classical growth model to conduct some diagnostic tests on the

data and evaluated some potential explanations for the diagnostic results. They conclude

that, starting from an initial position of about 5% greater per capita output than

Maharashtra, West Bengals per capita output had, dropped to about 69 percent of

34 Bhalla G. S. (2006), Indian Agriculture Since Independence., National book Trust, New Delhi 35 Amartya Lahiri and Kei Mu Yi (2004), Conference Proceeding, Lowa Development Conference, Federal Reserve Bank of America, New York

54

Maharashtra by 1993. The relative levels accounting suggest that, differences in total

factor production account for about 60% of the gap between West Bengal and

Maharashtra, relative to their position in 1961. Human capital account for a little more

than 20% of the gap and physical capital accounts for the remainder.

Sharma Puja and Gulati Ashok36 focused on union budget and agricultural

performance. They argued that, the budget is noteworthy for its focus on creation of

greater employment in rural areas through increased allocations for rural development

and irrigation. It also acknowledges some of the important changes that need to be

implemented in agriculture, including a policy for diversification, rationalization and

restructuring of subsidies and greater decentralization. Moreover, they put forth basic

question that, are the fiscal allocations and the policy impetus emanating from the budget

adequate to revitalize agricultural growth performance in the economy? Over these

issues, they found that not much of an effort has also been made to cut the food and

fertilizer subsidy and development. They concluded that, an important constituent of the

strategy to receive agricultural performance in the country must be to increase the level of

public investment in agricultural research and development and rural infrastructure.

Increase in public investment in agriculture in turn requires significant rationalization and

restructuring of governmental subsidies on food and agricultural inputs, including power,

canal, irrigation and fertilizers. There is a gap between the intensions of the government

and the allocations and policy priorities announced through budget. They suggested that,

the focus of budget on employment generation through creation of rural infrastructure is

an important step, but more effort is required to put agriculture on a higher growth

trajectory.

Chand Ramesh37 (1999) studied the emerging crises in Punjab Agriculture. His

study is based on empirical evidences and examines the scope of agricultural

36 Sharma and Gulati (2005),Can the Budget Boost Agricultural Performance, Economic and Political Weekly, Mumbai, May 21, pp-2136-2140 37 Chand Ramesh (1999), Emerging Crises in Punjab Agriculture, Economic and Political Weekly, Mumbai, May 27, pp- A2- A10

55

diversification by analyzing various dimensions of the suggested alternatives. He

discusses prospects of the diversification alternative and its implication on employment,

income, natural resources and ecology. An attempt also has made by him to propose

future strategy for agricultural and economic development of Punjab in the Post-green

resolution period. His study has organized into six sections. The growth rate in

agriculture output and per capita income in the recent period compared to the earlier

period, and performance of various crops have compared and analyzed prospects of

diversification in the crop pattern in the first two sections. Possibility of diversification

through dairing is examined in the third section. The causes of unemployment in the state

and scope of employment generation through diversification and other strategies are

explained in the fourth section. Impact of wheat and paddy cultivation on natural

resources like water, land and environment and remedies to check their degradation are

discussed in the second last section. The last contains policy suggestions. According to

him, Punjab farmers have made high level of investments in Agriculture due to which

any activity having low level of outturn, despite high value of profitability over variables

costs, would not find favour with the farmers. Therefore, only these enterprises can

complete with the existing ones whose value productivity is high moreover. Due to strong

infrastructure network and high exposure to mass media, high competitive spirit of states

farmers any potentially profitable enterprises gets quickly adopted by large number of

farmers which results in glut in the market leading to violent price crash when the

commodity is not of importance of mass consumptions. Over it, he suggested that, the

state should follow three types of diversification; one, through items of mass production

and consumption; two, concentration on area specific enterprises of moderately high

value, and three, limited diversification through non-connections high value items of elite

consumption.

Bhattacharya B. B. and Sakhtivel S.(2000) 38 studied about Regional Growth &

Disparities in India, a comparison of Pre & Post Reform decades. They used proper

38 Bhattacharya B. B. and Sakhtivel S.(2000), Regional Growth & Disparities in India, A Comparison of Pre & Post Reform Decades, Institute of Economic Growth, New Delhi

56

methodology for the study. They took 20 years period for their study i.e. 1980-81 to

1999-2000 and they divided this period into two sub-period as 1980-90 and 1999-2000

i.e. pre-reform period and post reform period. According to their study, the development

process has been uneven across states. While the advanced industrial states have tended

to leapfrog in the reform years, other states have lagged behind. The regional disparity in

the growth rates becomes sharper in terms of per capita income. They also mentioned

that, the tertiary sector rather than industry has become the engine of growth in the last

two decades. The growing regional disparity in the post reform period is now matter of

serious concern. With deregulation of private investment, faster growth in turn would

induce more investment. This in turn would further accentuate regional disparity. The

problem is compounded by the negative relationship between population growth and

incomes during the 1990’s. Unfortunately, backward states with higher population

growth are not able to attract investment – both public & private due to a variety of

reasons, like poor income and infrastructure and poor governance. Moreover, efforts

should be made to restrain population growth especially in backward states. Finally, the

quality of governance and in particular the efficiency of investment should be given more

attention at the state level. Moreover, they suggested that, if the inverse relationship

between income and population growth persist longer than eventually there would be a

serious conflict between states in terms of sharing of resources.

Majumdar Rajashri,39 (2005) worked on growth and development an Indian

experience and tried to explore interlinkage between growth and development in India,

According to her, issues concerning the similarities and the differences between growth

& development are quite old in the history of economic thinking. The growth and

development, they have their different indicators. Growth is narrow concept but

development encompasses much more issues like, education, health, equality livability

etc. Moreover, it has been after perceived that, the experience of economies in terms of

growth and in terms of development have not matched – high growth nations failing to

39 Majumdar Rajashri (2005), Growth and Development An Indian Experience, Department of Economic, University of Burdwan, Gopalbag, West Bengal.

57

‘develop’ while low growth nations managing to do so. In his paper, she used

conventional measure as well as rise in spectral income level, as indicators of growth.

The indicators are therefore Per Capita Income (PCI), per capital primary sector output

(PCPSO), per capita secondary sector output (PCSSO), per capita tertiary sector output

(PCTSO). The development has various facts and a region while lacking in one may be

well developed in another. Therefore, she took into account major three components and

tried to construct composite indices – Agricultural development (AGRIDEV), industrial

development (INDDEV), Human development (HUDEV). Each index represents one

particular aspect of development. Moreover, she used proper statistical techniques also to

process and get results to study growth and development for the Indian experience. She

concluded that, there has been impressive rise in PCI in India over the decades leading to

significant economic growth. However, although there has been noticeable rise in levels

of development during the study period, the rate of improvement of has lagged behind the

rate of growth. In fact, in the post SAP area, while economic growth has accelerated,

development process has decelerated. The hierarchical position of the states has remained

more or less similar.

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