The Interface of Agricultural and Industrial Growth in the Development Process: Some Facets of the Indian Experience

Authors

  • Ashok Mathur

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    • Ashok Mathur chairs the Centre for the Study of Regional Development, Jawaharlal Nehru University, New Delhi 110067, India. He is co-author of Techno-Economic Survey of Kerala, A Geo-Economic Evaluation for Micro-Level Planning.


ABSTRACT

This paper uses national, regional and sub-regional time series and cross-sectional data to show that the direct statistical relationship between agricultural and industrial growth is weaker than would be expected. To explain the gap between theoretical expectations and empirical results, the roles of lagged responses, the terms of trade effect, wage-price movements, initial agricultural productivity, income distribution and some non-agricultural factors as determinants of industrial growth are assessed. Adequate agricultural growth is important for price stabilization policy and has direct welfare implications for poorer segments of the population. Further, an appropriate policy towards non-agricultural determinants of industrial growth is needed in order to maximize the impact of agricultural growth on industrial development.

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