Total Factor Productivity in Indian Agriculture

Agricultural growth and development since economic reforms pose interesting propositions regarding the structural and behavioural characteristics of total factor productivity in the Indian context. Productivity and growth rate of agricultural output are largely influenced by the conventional inputs such as land, labour and capital and also by the contribution of non-conventional factors including technology. The combined effects of these non-conventional factors influence the dynamic change in total factor productivity. Utilising growth accounting framework with production function approach for aggregation of inputs, this study undertook a modest attempt to estimate and analyse total factor productivity (TFP) with and without constant returns to scale restrictions and their determinants respectively in Indian agriculture as a whole since 1991-92 up to 2016-17. Interesting inferences were derived regarding the nature and trend of estimated productivities, their determinants and important policy implications while noticing a falling trend in total factor productivity with constant returns to scale restriction and observing no conclusive linear trend in total factor productivity without constant returns to scale (CRS)restriction.