Dynamics of agriculture-industry linkages
1999
Satyasai, K.J.S. | Viswanathan, K.U. (National Bank for Agriculture and Rural Development, Mumbai (India). Department of Economic Analysis and Research)
Agriculture in recent decades is characterised by intensive use of purchased inputs for which it has to inevitably depend on the industrial sector. Further, increased rural incomes during this period have induced consumption of commodities such as toothpastes, electric bulbs, toilet soaps, etc., and purchase of consumer durables. Also the industrial sector's interest in agri-linked ventures apparently increased in recent times especially because of investment opportunities in post-harvest handling such as processing and export. The results also showed that the influence of agriculture on industrial sector production measured in terms of elasticity showed increase over time, notwithstanding deceleration in the recent periods. That is, the elasticity of real GDP from the industrial sector with respect to the same from agriculture is higher in the 1980s and early 1990s than in the pre-1980 period.
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