Do Agriculture Input Resources Contribute to Agriculture GDP of India – An Empirical Analysis
Abstract
This study analyses secondary data from 1990 - 2024 to analyse the relationship between agricultural inputs and agricultural Gross Domestic Product growth rate in the Indian Economy by using a Multiple Regression Analysis. Agricultural GDP growth rate is used as the dependent variable, and net irrigated area, fertilisers, electricity, rainfall and institutional credit are taken as independent variables. The study finds that variables like fertilisers, rainfall and institutional credit are not statistically significant, which means they do not have a significant impact on agricultural GDP during the data period. The study further reveals that variables like net irrigated area and electricity are statistically significant, and these variables have a significant impact on agricultural GDP during the study period. To promote GDP growth, the focus should be on improving input use efficiency through precision farming, stabilising critical inputs, and implementing risk management strategies. Policymakers should promote modern farming techniques like hydroponics & aeroponics, micro-irrigation, polyhouse & greenhouse automation, and vertical farming.
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