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Copyright © Cambridge Political Economy Society

research-article

On the role of agriculture in India's longer-term development strategy

Servaas Storm*

*Erasmus University Rotterdam

Abstract

Two contrasting views on agriculture's role in India's longer-term development strategy are identified, and evaluated with the help of a dynamic multisector model, capturing the structural features of India's mixed economy. The simulation results show that policy recommendations favouring industrial growth, in which the interdependence between agriculture and industry is not taken into account, turn out to be self-defeating, while policies succeeding in raising agricultural production and income also lead to improved industrial performance, because they augment the size of the domestic market. Hence, the results suggest that Indian industrialisation can be only sustained by agriculture.

Manuscript received January 8, 1993; final version received October 26, 1993.


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