Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies
Using the decennial All-India Debt and Investment Survey from 1981-82 to 2012-13, this paper delves into the spatial and temporal trends in private fixed capital expenditure and its composition, among rural households in India. We also assess its relationship with public investment in agriculture. A...
| Autores principales: | , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/143486 |
| _version_ | 1855521605473533952 |
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| author | Kumar, Anjani Bathla, Seema Verma, Smriti |
| author_browse | Bathla, Seema Kumar, Anjani Verma, Smriti |
| author_facet | Kumar, Anjani Bathla, Seema Verma, Smriti |
| author_sort | Kumar, Anjani |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Using the decennial All-India Debt and Investment Survey from 1981-82 to 2012-13, this paper delves into the spatial and temporal trends in private fixed capital expenditure and its composition, among rural households in India. We also assess its relationship with public investment in agriculture. Amidst sizeable ups and downs, the magnitude and rate of growth in private investment in agriculture has gained momentum from 2000s except in Odisha, Himachal Pradesh, Jammu and Kashmir. An increasing preference of farmers to invest in residential land and buildings, and that at the cost of asset formation in farm business, is evident in agriculturally advanced states. Within agriculture, relatively higher investments in land improvement, machinery-implements, tractors, and livestock are identified over the period. Importantly, such investments are positively influenced by public investments in agriculture and irrigation in the high and low income states and also by public spending on input subsidy in the middle and low income states. An increase in public expenditure that is well targeted and is commensurate with farmers’ investment portfolio would reinforce a complementary relation between the two across-the-board. The impact of terms of trade on private investment though positive turns out to be statistically insignificant. Land acts as a constraint, indicating need for policy interventions that augment crop yield and can bring remunerative prices to farmers. A continued effort to improve the outreach of formal financial institutions for credit is warranted for higher private capital formation. |
| format | Artículo preliminar |
| id | CGSpace143486 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1434862025-12-02T21:03:24Z Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies Kumar, Anjani Bathla, Seema Verma, Smriti capital public finance public investment private farms households private investment agriculture farm management fixed capital agrifood sector public expenditure capital allocation Using the decennial All-India Debt and Investment Survey from 1981-82 to 2012-13, this paper delves into the spatial and temporal trends in private fixed capital expenditure and its composition, among rural households in India. We also assess its relationship with public investment in agriculture. Amidst sizeable ups and downs, the magnitude and rate of growth in private investment in agriculture has gained momentum from 2000s except in Odisha, Himachal Pradesh, Jammu and Kashmir. An increasing preference of farmers to invest in residential land and buildings, and that at the cost of asset formation in farm business, is evident in agriculturally advanced states. Within agriculture, relatively higher investments in land improvement, machinery-implements, tractors, and livestock are identified over the period. Importantly, such investments are positively influenced by public investments in agriculture and irrigation in the high and low income states and also by public spending on input subsidy in the middle and low income states. An increase in public expenditure that is well targeted and is commensurate with farmers’ investment portfolio would reinforce a complementary relation between the two across-the-board. The impact of terms of trade on private investment though positive turns out to be statistically insignificant. Land acts as a constraint, indicating need for policy interventions that augment crop yield and can bring remunerative prices to farmers. A continued effort to improve the outreach of formal financial institutions for credit is warranted for higher private capital formation. 2020-01-01 2024-05-22T12:14:28Z 2024-05-22T12:14:28Z Working Paper https://hdl.handle.net/10568/143486 en https://doi.org/10.1007/978-981-13-6443-3_12 https://doi.org/10.2499/p15738coll2.133226 https://doi.org/10.2499/p15738coll2.133586 Open Access application/pdf International Food Policy Research Institute Kumar, Anjani; Bathla, Seema; and Verma, Smriti. 2020. Revisiting the relationship between public and private capital formation in Indian agriculture: A disaggregated analysis. IFPRI Discussion Paper 1905. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.133586. |
| spellingShingle | capital public finance public investment private farms households private investment agriculture farm management fixed capital agrifood sector public expenditure capital allocation Kumar, Anjani Bathla, Seema Verma, Smriti Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title | Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title_full | Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title_fullStr | Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title_full_unstemmed | Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title_short | Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies |
| title_sort | changing composition of private investment in indian agriculture and its relationship with public investment and input subsidies |
| topic | capital public finance public investment private farms households private investment agriculture farm management fixed capital agrifood sector public expenditure capital allocation |
| url | https://hdl.handle.net/10568/143486 |
| work_keys_str_mv | AT kumaranjani changingcompositionofprivateinvestmentinindianagricultureanditsrelationshipwithpublicinvestmentandinputsubsidies AT bathlaseema changingcompositionofprivateinvestmentinindianagricultureanditsrelationshipwithpublicinvestmentandinputsubsidies AT vermasmriti changingcompositionofprivateinvestmentinindianagricultureanditsrelationshipwithpublicinvestmentandinputsubsidies |