An Analysis on Agriculture Infrastructure and its impact on Agricultural Output in India

Abstract

The aim of the present paper is to analyse the short run and long relationship of agricultural production with respect to agricultural infrastructure. For this purposes the cointegration of infrastructure and agricultural output was carried out using ARDL model. The model shows that there is significant link between infrastructure and agricultural output. Irrigation, electricity and fertilizer consumption plays a vital role in in scripting the spectacular success story of agriculture. Access to electricity creates various income earning opportunities for rural households. The analysis shows that the infrastructure plays significant role in improving the agricultural productivity, inadequate infrastructure can be big constraint to growth and productivity. The infrastructure influences the agricultural growth, economic growth. The study suggested that for remarkable progress in agriculture field, there is need to increase irrigated area, electricity consumption, which is possible only by improving the share of public investment on agriculture like massive investment in irrigation, better management of canal irrigation, massive expansion in the supply of electric pumps, assured quality electricity to agriculture and subsidised farm implements and assets and also transparency in accessing majority of schemes have been drivers of agricultural growth. Government spending on production related aspects likewise irrigation, electricity, roads etc. will contribute to reduction in rural poverty and agriculture growth. The present study is unique in the sense that while most of the previous studies have focused on static relationship between output and infrastructure, this study focus on dynamic relationship between output and infrastructure.