Exploring the Interconnection of Agricultural Growth and Poverty Reduction in India
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Abstract
Addressing poverty is a pressing issue in developing nations, posing a significant challenge to both economic advancement and societal well-being. While India boasts the title of the world's fastest-growing economy, concerted efforts are imperative to enhance living standards and the overall welfare of its populace. The agricultural sector, serving as a primary source of livelihood, plays a pivotal role in providing employment opportunities and contributing to poverty reduction.
To delve into the impact of agricultural growth on poverty alleviation, this study utilized secondary data from sixteen purposively selected states in India. The objective was to analyze the correlation between poverty levels, Agriculture Gross Domestic Product (GDP) per worker, and Non-Agriculture Gross Domestic Product (GDP) per worker through pooled regression analysis.
The study's findings reveal a noteworthy trend. A one percent increase in Agriculture GDP per worker corresponds to a 0.11 percent reduction in poverty, surpassing the impact of a 0.04 percent reduction associated with Non-Agriculture GDP per worker. This underscores the significance of promoting agricultural growth for more effective poverty reduction, particularly in agrarian economies like India, where a substantial portion of the population relies on agriculture for sustenance.
However, the study also advocates for a balanced and mutually beneficial growth across various sectors of the economy. Such an approach is seen as instrumental in fostering comprehensive poverty alleviation throughout the country.
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