Agriculture Industry Linkages in the Economy of Jammu and Kashmir ...

Farming plays an essential role in contributing to socio-economic development around the globe. It is the principal source for employment, livelihood, and meals security for almost all rural people. The success of this kind of continuation will depend largely for the direct effects it has within the national economic system as well as the way the agricultural sector stimulates the growth of different sectors throughout the economy.

Consequently, comprehending the role of agriculture as well as its linkages to the rest of the economic system is important. The inter-relationship among agriculture and industry is a long discussed issue in the expansion literature. In the Indian framework the issue provides acquired interest since professional stagnation inside the mid 1960s.

Over the years the Indian economy has gone through a strength change in its sectoral formula: from an initial agro-based economy during the 1970s, the economy features emerged because predominant in industry. This has triggered an interest in readdressing the deductive and methodological aspects of the interlinkages between two areas the assistance sector because the 1990s. This structural changes and the unequal pattern of growth of farming, industry and service sector economy in the post reforms period may appear substantive changes in the production and demand linkages amongst various our economy.

At the same time the growing the use with the remaining portion of the world in the post-reform period (post 1991 period) plus the recent spurt of assistance sector led growth are usually likely to have got significant influence on the linkages between the cultivation and sector. This has activated an interest in read dressing the deductive and methodological aspects of the interlinkages between two areas. That cultivation and market being essential component of development process because of their mutual interdependence and symbiotic relationship, the contribution of agriculture to the economy on the whole and to market in particular is known in virtually all the developing countries.

Nevertheless , the degree of interdependence may vary and in addition change as time passes. In the theory and empirical literature, the inter-relationship among agriculture and industry has become discussed from different programs. First, cultivation supplies meals grains to industry to facilitate ingestion of work in the industry sector.

Secondly, agriculture supplies the advices like natural cotton, jute, tea, caffeine etc . required by the agro-based industries. Finally, industry products industrial inputs, such as fertilizer, pesticides, machines etc . for the agriculture sector. Fourthly, agriculture influences the outcome of industrial customer goods through demand.

Fifthly, agriculture creates surpluses of savings, which is often mobilized intended for investment in industry, and other sectors from the economy. Sixthly, fluctuations in agricultural production may affect private corporate and business investment decisions through the effects of the terms of trade on success, whereas many of these channels focus on the agriculture-industry? linkage around the supply side or production side, others stress the linkages through the demand area. The production linkages basically occur from the interdependence of the sectors for conference the requirements of their fruitful inputs, whereas the demand linkage arises from the interdependence from the sectors pertaining to meeting final consumption.

Additional, the entrave between the two sectors can even be categorized in two teams based on the direction of interdependence. One is the in reverse linkage, which usually identifies what sort of sector is determined by others for his or her input products and the other is the forwards linkage, which identifies the way the sector distributes its outputs to the staying economy. More importantly, these two linkages can reveal a sector’s economic take and drive, because the course and amount of such cordons present the capacity of every sector to stimulate various other sectors after which reflect the role on this sector consequently. As far as Jammu and Kashmir is concerned Agriculture is the main sector of the economy.

Directly and indirectly, it helps about 70 per cent in the population besides contributing practically 60 percent of the condition revenue, which will adequately talks about the over-dependency of the inhabitants on agriculture. The overall monetary growth of the state depends typically on the improvement of the agricultural sector, the development of which turns into even more important inside the context of the extremely nominal progress it has produced in the second sectors. While using introduction of planned development in the point out during 1951-56, production of foodgrains and fruits has grown considerably. During 1998-99, the state produced 12-15.

50 lakh quintals of food grains against four. 53 lakh quintal in 1950-51. On this, Kashmir place contributed twenty-seven. 20 %, Jammu region 72. 18 per cent and Ladakh and Kargil area 0. sixty six per cent Sectors play a huge role in the progress an overall economy.

In this regard unfortunately, J&K has not been able to attract investments in companies and continued to be as a great industrially in reverse state. The state does not have a good industrial base, because geographical location of the state is such the setting up of large industries which has a large Capital base is definitely not feasible, besides undesirable environmental consequences. Nevertheless, various small and medium-scale industries came up essentially in the traditional sectors along with areas like food processing, agro-based units and metallic and non metal products.

Thus in such an sectoral environment were industrial sector provides low option, Agriculture give basic entrave in its expansion. Thus your Jammu and Kashmir were main source of income is definitely agriculture for masses of persons, the entrave between Agriculture and Sector is very important to examine in order to know the potential of Agriculture to build up an commercial environment in the state. In mean although it is important to analyze the dependence of agriculture on market, so that both equally sectors is going to flourish the development in the point out of Jammu & Kashmir.

The macroeconomic linkage between agricultural sector and professional growth has been one of the most generally investigated in the development literary works. In the early stages, researchers paid great attention in studying the partnership between the agricultural and industrial sectors, and exactly how these areas were inter-related. They contended that farming only performs a unaggressive role; which is to be the most important source of resources (food, fiber, and raw material) for the development of market and other nonagricultural sectors (Rosenstein-Rodan, 1943; Lewis, 1954; Ranis and Fei, 1961). Several of these analysts highlighted agriculture due to the resource large quantity, and its capability to transfer ecart to the crucial industrial sector.

India becoming a predominantly agrarian economy and an agro-based industrial composition, the interrelationship between farming and industry has been one of the major issues for the analysts and insurance plan makers since the beginning of the planning period. Inside the pre and early post-independence period, the industry sector had a close relationship with agriculture due to the agro-based industrial structure (Satyasai and Baidyanathan, 1997). Satyasai and Viswanathan (1999) located that the outcome elasticity of industry regarding agriculture was 0. 13 during 1950-51 to 1965-66.

Rangarajan (1982) has found that the 1 . 0 percent growth in gardening production raises industrial production by zero. 5 percent, and therefore, GDP by 0. several percent during 1961-1972. Nevertheless , the industrial sector witnessed a slow progress, stagnation since the mid 1960s, which was largely attributed to the stunnedagricultural progress and great agricultural TANTO, among other factors (Patnaik, 1972; Nayyar, 1978 and Bhatla, 2003).

15 In fact the interdependence between the two areas has found being weakened during the 1980s and 1990s (Bhattacharya and Mitra, 1989; Satyasai and Viswanathan, 1997). For instance, Bhattacharya and Rao (1986) have discovered that the incomplete output elasticity of market with respect to farming has declined from zero. 15 during 1951/52 1965/66 to 0. goal during 1966/67-1983/84. Contradictorily, Satyasai and Viswanathan (1999) identified that the end result elasticity of industry with respect to agriculture has grown from zero. 13 during 1950/51-1965/66 to 0. 18 during 1966/671983/84, and then continued to be at the same level 0. 18 during 1984/85-1996/97.

The deteriorating linkages between agriculture and industry have already been primarily awarded to the insufficiency in demand intended for agricultural goods, decline in share of agro-based sectors coupled with sluggish employment development (Rangarajan, 1982; Bhattacharya and Rao, 1986; and Chowdhury and Chowdhury, 1995). Sastry et al. (2003), for the period 1981-82 to 1999-2000, found the forward production linkage between agriculture and industry has declined, although backward development linkage has increased. They also discovered significant impact of farming output upon industrial outcome, and that agriculture’s demand addition to sector has rejected, while regarding from sector to farming has increased.

Economical and Politics Weekly Aug 26, 1989 1963 wean agriculture and merely the set of professional consumption merchandise like garments, footwear, glucose and consumable oils, it could be concluded that the general intersectoral entrave appear quite modest. The early writers, such as Rosestein-Rodan (1943), Lewis (1954), Scitovosky (1954), Hirchman (1958), Jorgeson (1961), Fei and Ranis (1961) and others emphasized the part of culture only like a primary supplier of salary goods and raw materials and abundant work supply to industry (Johnston and Mellor, 1961 and Vogel, 1994). The position of agriculture in the alteration of a growing economy was seen as supplementary to the central strategy of accelerating the pace of industrialization (Vogel, 1994).

Kalecki (1976) as well pointed out the importance of expense and scientific advances in agriculture pertaining to the rapid development of market. The traditional materials on inter-sectoral linkages in the growth method generally emphasises the role of culture as a principal supplier of wage products and unprocessed trash to market (supply-linkage on the one hand and as a provider of major outcome for in- dustrial merchandise (demand linkage) on the other [Johnston and Mellor, 61 and tertiary sector within a modern economy.

Further, it may be noted that with growing mechanization of agriculture it becomes dependent on market for basic inputs, like, fertiliser, electric power, pesticides, and so forth Incidentally the agriculture-industry relationship becomes more complicated in this procedure. A slow growth of net availability of food- grains or perhaps alternatively the movement of inter-sectoral terms of transact in favor of the agricultural sector is considered to cause deceleration of the industrial sector. Nevertheless , empirically speaking there was zero slow down in the growth of creation of food- grains after the mid-sixties [Ahluwalia: 1985].

Nor was there any fall in the marketed excess of culture [rhamarajakshi: 1977] so as to always be related to the commercial decelera- tion. But , so far as the farming vis-Г -vis industry terms of trade is involved, one en- counters a series of mixed facts. Whe Thamarajakshi [1977], and Mitra [1977] visualised a favouralJe terms of trade pertaining to the gardening sector through the mid-sixties andearly seventies, Khalon and lyagi [1983] obtained evidence that stand quite contrary to others’ view. Mundle [1977], however main- tains that in terms of intersectoral resource flow-of which conditions of trade is just a single component-the commercial sector has been undergoing damage since the mid-sixties.

Prior to it turned out agriculture which was experiencing a great outflow of resources. Rangarajan [1982a] in the macro econometric model makes an attempt to capture the necessity linkage among agriculture and industry. This individual identifies a good impact that agricultural end result has on the necessity for commercial consumption products.

The effect of foodgrain terms of transact on industrial products has been negative yet elasticity is definitely negligible. Both agricultural result and terms of operate had a great influence in household saving and investment. Keeping in view such segmented impact of agriculture in industry zplaining the actions of indugtrial produc- tion purely in terms of agricultural performance. Bhattacharya and Rao [1986] emphasisesthe sluggishness that extended in the per-formance of sector even following your relative rest of the income goods limitation that took place during the green revolution period.

Thus, the theoretical literary works in the agriculture-industry linkages has generally highlighted the spot of agriculture and non-agriculture sector, especially industry inside the development process and contribution of each in augmenting regarding output and employment. Almost all of the theoretical literature has generally focused simply on one area of the agriculture-industry linkages ” i. e. either the supply side linkages or demand side linkages. However it can be both the require side and provide side entrave that work collectively in an inter-sectoral framework, which will determines the interlinkages between the two groups.

In this respect Bhaduri (2003) and Bhaduri (2007) are two important efforts in the literary works. Bhaduri (2003) extends Kaldor’s model simply by considering the role of the agricultural surplus from your supply side as well as the significance of the demand complication for professional goods. In this set up, both the sectors develop tandem, rewarding and reinvigorating each other’s growth behavioral instinct, by resolving each other’s potential recognition problem (Jha, 2010).

Even more, Bhaduri et al. (2007) have expanded the Kaldor’s model simply by contrasting involving the supply part and demand side entrave of the two sectors from the TOT perspective. Thus there has been lot of studies, publication and models for the topic Agriculture industry linkages in the economy given by various renowned economists, and peoples associated with this field. Everybody concluded that there is an unlimited addition between two sectors which in turn not only develop one other yet also provide birth to other industries as well.

As a result to conclude it can be said that in an economy mostly there is a large numbers of linkages originated from a primary level and put economic system to those groups which retain it in the level of developed types.