Year: 2025 | Month: March | Volume 70 | Issue 1
Determinants of Public-Private Synergy in Agricultural Capital Formation: An Econometric Analysis of GCF Dynamics in India
Sachin Rathour
Prakash Singh Badal
Virendra Kamalvanshi
Saket Kushwaha and Devegowda
S.R.
DOI:10.46852/0424-2513.1.2025.19
Abstract:
This study explores the trends and dynamics of Gross Capital Formation (GCF) in India’s agricultural sector from 1980 to 2023, with a particular focus on public and private investments. The analysis employs a combination of polynomial trendlines, Compound Annual Growth Rate (CAGR), Coefficient of Variation (CV), and correlation analysis to assess the impact of key policy milestones, such as the 1991 Economic Reforms, the 2000 National Agricultural Policy, and the 2013 Direct Benefit Transfer (DBT) scheme, on
capital formation in agriculture. The results reveal a general decline in public investment, accompanied by strong growth in private sector contributions, particularly since the 1990s. The study also finds a statistically significant negative relationship between public and private investments, suggesting that public sector investments may crowd out private investments. The findings have important policy
implications for improving access to capital for small farmers and fostering sustainable agricultural development.
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