8. Disparities in Agriculture Income Across the Indian States

This study investigates the convergence hypothesis in agricultural income across major Indian states over the period 1980–81 to 2011–12 using the Barro and Sala-i-Martin and Sala-i-Martin approaches. Broad findings reveal large interstate variations in the net state domestic product in agriculture. Out of 24 states taken up for investigation, only seven states displayed the tendency towards convergence and the remaining showed considerable divergence. The agricultural sector has risen quickly in the northern states, viz. Punjab, Haryana and Western Uttar Pradesh, perhaps due to the initiatives taken by the central and the state governments through adoption of high-yielding varieties, land reforms, particularly consolidation of land holdings and assured irrigation, procurement and price support measures for food grains. These factors along with others could explain the widening regional disparities in farm income. The authors suggest the need for redesigning of agricultural policies in order to achieve regional balances in development.