Pub Date : 2024-05-15DOI: 10.1177/00194662241251555
P. Arora, Jaydeep Mukherjee
The present study investigates the relationship between export performance and the level of financial development for 30 Indian states and union territories (UTs) from 2011–12 to 2020–21. The study first ranks the states and UTs on the parameters of financial development and physical infrastructure using the robust principal component analysis method. By applying the instrumental variable fixed effects panel data technique, the study observes that the level of financial development has a significant positive impact on the export performance of the states. The study also finds a positive effect of the availability of physical infrastructure, quality of governance and fiscal position on states’ export performance but does not observe a significant role of political stability in this context. The results suggest that export growth in the economically laggard and Himalayan states can come through policy interventions to improve financial development. In contrast, landlocked states need better physical infrastructure to facilitate easier production and transportation of export goods. The study lends new perspectives to the nascent literature on inter-regional disparities in India’s export performance and is expected to provide insights into improving the sub-national export performance of other developing countries as well. JEL Codes: F14, F36, F4
{"title":"Financial Development and Subnational Export Performance: Evidence from the Indian States","authors":"P. Arora, Jaydeep Mukherjee","doi":"10.1177/00194662241251555","DOIUrl":"https://doi.org/10.1177/00194662241251555","url":null,"abstract":"The present study investigates the relationship between export performance and the level of financial development for 30 Indian states and union territories (UTs) from 2011–12 to 2020–21. The study first ranks the states and UTs on the parameters of financial development and physical infrastructure using the robust principal component analysis method. By applying the instrumental variable fixed effects panel data technique, the study observes that the level of financial development has a significant positive impact on the export performance of the states. The study also finds a positive effect of the availability of physical infrastructure, quality of governance and fiscal position on states’ export performance but does not observe a significant role of political stability in this context. The results suggest that export growth in the economically laggard and Himalayan states can come through policy interventions to improve financial development. In contrast, landlocked states need better physical infrastructure to facilitate easier production and transportation of export goods. The study lends new perspectives to the nascent literature on inter-regional disparities in India’s export performance and is expected to provide insights into improving the sub-national export performance of other developing countries as well. JEL Codes: F14, F36, F4","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"136 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140977042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-05-13DOI: 10.1177/00194662241251511
Saba Ismail, Shahid Ahmed
The present study investigates the potential trade effects of tariff liberalisation under India–United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) using general equilibrium analysis. The study specifically examines output, employment, exports and welfare effects of India–UAE CEPA in computable general equilibrium (CGE) framework using the Global Trade Analysis Project (GTAP) model and database version 10. The study indicates output gains in manufacturing sector for both countries and an increase in demand for unskilled labour in India. The study argues that the CEPA will result in an increase in global exports of all commodity groups for both India and UAE and a substantial gain in bilateral exports of both countries. The present study suggests that deeper integration through tariff reduction on imports under India–UAE CEPA will be welfare enhancing for both India and UAE. Overall results show that there is a lot of untapped potential to bring the welfare gains for both trading partners. Given the present schedule of tariff reduction of CEPA, a win–win scenario will emerge for both partners in short as well as long run. Finally, the study cautioned about the implications of sensitive list for trade effects and protection from misuse of rules of origin in the CEPA. JEL Codes: F1, F13, F14, F15, F17
{"title":"Economy-wide Impacts of India–UAE CEPA: A CGE Analysis","authors":"Saba Ismail, Shahid Ahmed","doi":"10.1177/00194662241251511","DOIUrl":"https://doi.org/10.1177/00194662241251511","url":null,"abstract":"The present study investigates the potential trade effects of tariff liberalisation under India–United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) using general equilibrium analysis. The study specifically examines output, employment, exports and welfare effects of India–UAE CEPA in computable general equilibrium (CGE) framework using the Global Trade Analysis Project (GTAP) model and database version 10. The study indicates output gains in manufacturing sector for both countries and an increase in demand for unskilled labour in India. The study argues that the CEPA will result in an increase in global exports of all commodity groups for both India and UAE and a substantial gain in bilateral exports of both countries. The present study suggests that deeper integration through tariff reduction on imports under India–UAE CEPA will be welfare enhancing for both India and UAE. Overall results show that there is a lot of untapped potential to bring the welfare gains for both trading partners. Given the present schedule of tariff reduction of CEPA, a win–win scenario will emerge for both partners in short as well as long run. Finally, the study cautioned about the implications of sensitive list for trade effects and protection from misuse of rules of origin in the CEPA. JEL Codes: F1, F13, F14, F15, F17","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"35 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140982459","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-05-13DOI: 10.1177/00194662241247134
Vaseem Akram, Gulnawaz Usmani, B. N. Rath, Bushra Praveen
This article investigates the relative convergence of infant mortality rate (IMR) across the 15 major Indian states for the period 1987–2020. To test this hypothesis, this study applies Phillips and Sul’s (2007) panel convergence test. Further, for the robustness of our findings, this study implements the extension of Phillips and Sul’s relative club convergence test, which Kwak propounded in 2021. The results based on Phillips and Sul show divergence in IMR among the states; however, the existence of convergence when 15 states are grouped into different clubs. Four final clubs emerged based on the Kwak test, suggesting that each club has its unique transition path. One group is also identified, suggesting neither convergence nor divergence. From the policy perspective, it is important for the government to target reducing IMR by emphasising at the club level rather than focusing on all states together. JEL Codes: I140, H75
{"title":"Infant Mortality Rate Convergence across Indian States: Relative Club Convergence Evidence","authors":"Vaseem Akram, Gulnawaz Usmani, B. N. Rath, Bushra Praveen","doi":"10.1177/00194662241247134","DOIUrl":"https://doi.org/10.1177/00194662241247134","url":null,"abstract":"This article investigates the relative convergence of infant mortality rate (IMR) across the 15 major Indian states for the period 1987–2020. To test this hypothesis, this study applies Phillips and Sul’s (2007) panel convergence test. Further, for the robustness of our findings, this study implements the extension of Phillips and Sul’s relative club convergence test, which Kwak propounded in 2021. The results based on Phillips and Sul show divergence in IMR among the states; however, the existence of convergence when 15 states are grouped into different clubs. Four final clubs emerged based on the Kwak test, suggesting that each club has its unique transition path. One group is also identified, suggesting neither convergence nor divergence. From the policy perspective, it is important for the government to target reducing IMR by emphasising at the club level rather than focusing on all states together. JEL Codes: I140, H75","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"4 13","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140982434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-05-09DOI: 10.1177/00194662241247137
Dakrushi Sahu
The study was aimed at (a) exploring the anomalies in conceptualising and measuring work, especially that of the women, (b) analysing the patterns of unpaid work distribution between men and women, and (c) examining the drivers of time spent on unpaid work in India. It has been argued that the under-conceptualisation of work and the methodological constraints led to invisibilising several activities, mostly performed by girls and women, in the prevailing labour force statistics and national income accountings. We have noted that such anomalies could be overcome with the advancement of robust statistical tools like that of time use survey. By employing the first and the most recent pan time use survey, conducted by the National Sample Survey Organization across the country in 2019, we have assessed the gender patterns of unpaid work and its determinants. We found the existence of a stark gender gap both in terms of participation and average time spent on unpaid work across rural and urban regions. Again, the findings, obtained through the Tobit regression model, reveal that the nature of the association and the extent of time allocated to unpaid work vary substantially across the demographic and socio-economic characteristics. JEL Codes: J22, J21, J40, J46, C10
{"title":"Gender Conundrum and Unpaid \u2028Work in India: Empirical Evidence \u2028from India’s First Large-scale Time \u2028Use Survey","authors":"Dakrushi Sahu","doi":"10.1177/00194662241247137","DOIUrl":"https://doi.org/10.1177/00194662241247137","url":null,"abstract":"The study was aimed at (a) exploring the anomalies in conceptualising and measuring work, especially that of the women, (b) analysing the patterns of unpaid work distribution between men and women, and (c) examining the drivers of time spent on unpaid work in India. It has been argued that the under-conceptualisation of work and the methodological constraints led to invisibilising several activities, mostly performed by girls and women, in the prevailing labour force statistics and national income accountings. We have noted that such anomalies could be overcome with the advancement of robust statistical tools like that of time use survey. By employing the first and the most recent pan time use survey, conducted by the National Sample Survey Organization across the country in 2019, we have assessed the gender patterns of unpaid work and its determinants. We found the existence of a stark gender gap both in terms of participation and average time spent on unpaid work across rural and urban regions. Again, the findings, obtained through the Tobit regression model, reveal that the nature of the association and the extent of time allocated to unpaid work vary substantially across the demographic and socio-economic characteristics. JEL Codes: J22, J21, J40, J46, C10","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 31","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140995601","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-05-08DOI: 10.1177/00194662241238961
Mohd Hussain Kunroo, Md. Absar Alam
The purpose of this study is to determine the factors that influence deaths in road accidents in India. The study uses panel econometric methodologies such as the fixed effects model, random effects model, and Hausman–Taylor instrumental variable technique to achieve this goal. Unobserved heterogeneity between states/union territories (UTs) and time is accounted for by time-fixed and state-fixed effects. Based on the panel data set from Indian states/UTs for the period 2004–2018, the study confirms previous results that motorisation, population, urbanisation and income level are all potential contributors to road accidents and fatalities. It also shows that spending on health care and law enforcement appears to help the Indian states minimise mortality in road traffic accidents. On the one hand, spending on health care facilities can provide health-related assistance to persons who have been involved in traffic accidents; on the other hand, spending on police increases the enforcement of rules, resulting in a reduction in traffic accidents. Thus, to lessen the economic and financial cost of road accidents in the country, the government should focus on boosting both per capita health expenditure and per capita police expenditure. JEL Codes: C23, C26, H51, I18, L92, O18, R41, R42
{"title":"Determinants of Road Traffic Crash Fatalities: A Case of Road Accidents in India, 2004–2018","authors":"Mohd Hussain Kunroo, Md. Absar Alam","doi":"10.1177/00194662241238961","DOIUrl":"https://doi.org/10.1177/00194662241238961","url":null,"abstract":"The purpose of this study is to determine the factors that influence deaths in road accidents in India. The study uses panel econometric methodologies such as the fixed effects model, random effects model, and Hausman–Taylor instrumental variable technique to achieve this goal. Unobserved heterogeneity between states/union territories (UTs) and time is accounted for by time-fixed and state-fixed effects. Based on the panel data set from Indian states/UTs for the period 2004–2018, the study confirms previous results that motorisation, population, urbanisation and income level are all potential contributors to road accidents and fatalities. It also shows that spending on health care and law enforcement appears to help the Indian states minimise mortality in road traffic accidents. On the one hand, spending on health care facilities can provide health-related assistance to persons who have been involved in traffic accidents; on the other hand, spending on police increases the enforcement of rules, resulting in a reduction in traffic accidents. Thus, to lessen the economic and financial cost of road accidents in the country, the government should focus on boosting both per capita health expenditure and per capita police expenditure. JEL Codes: C23, C26, H51, I18, L92, O18, R41, R42","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 56","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141000731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-05-01DOI: 10.1177/00194662241235612
Neba Bhalla, Inderjit Kaur, Rakesh Kumar Sharma
Micro, small and medium enterprises (MSME) is one the vital sector of the developing economy. Changes in fiscal policy directly impact this sector the most. The present article aims to examine the impact of the recent Indian indirect system tax overhaul, that is, Goods and Service Tax (GST), on the MSME sector. We have employed multivariate analysis of variance and multi-layer perceptron neural network on the extensive data set for 60 months from April 2015 to March 2020. The empirical findings state that a significant increase has been observed in the MSMEs’ export, revenue generation and gross domestic product in the post-GST era. The findings may aid the emerging economies that are planning to alter tax systems to boost the MSME sector at the international level. JEL Codes: H20, L00, B22, C01, C45
{"title":"Impact of Goods and Service Tax on MSME Sector: A Study Using Artificial Neural Network and Multivariate Analysis of Variance","authors":"Neba Bhalla, Inderjit Kaur, Rakesh Kumar Sharma","doi":"10.1177/00194662241235612","DOIUrl":"https://doi.org/10.1177/00194662241235612","url":null,"abstract":"Micro, small and medium enterprises (MSME) is one the vital sector of the developing economy. Changes in fiscal policy directly impact this sector the most. The present article aims to examine the impact of the recent Indian indirect system tax overhaul, that is, Goods and Service Tax (GST), on the MSME sector. We have employed multivariate analysis of variance and multi-layer perceptron neural network on the extensive data set for 60 months from April 2015 to March 2020. The empirical findings state that a significant increase has been observed in the MSMEs’ export, revenue generation and gross domestic product in the post-GST era. The findings may aid the emerging economies that are planning to alter tax systems to boost the MSME sector at the international level. JEL Codes: H20, L00, B22, C01, C45","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"5 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141055098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-25DOI: 10.1177/00194662241238575
P. Jena
A credible budget complies with budget contracts voted in Parliament and improves the efficiency of government expenditure. Deviations, as a result of weak capacity to forecast revenue or execute the planned activities, pose risks to both existing and future programme management. This budgetary tenet assumes significance as the states have to respond to disruption in revenues, rising expenditure burdens and changes in priorities in the wake of COVID-19 pandemic and face challenges to restore fiscal consolidation process. The article assesses the budget credibility of states in India from 2012–13 to 2018–19 following the international standard given by the Public Expenditure and Financial Accountability (PEFA) framework. It also focuses on strengthening institutional framework to utilise fiscal instruments optimally for better service delivery and development. JEL Codes: H61, H68, E62
{"title":"Ability of States to Implement \u2028Planned Budget in India: An \u2028Assessment Using PEFA Framework","authors":"P. Jena","doi":"10.1177/00194662241238575","DOIUrl":"https://doi.org/10.1177/00194662241238575","url":null,"abstract":"A credible budget complies with budget contracts voted in Parliament and improves the efficiency of government expenditure. Deviations, as a result of weak capacity to forecast revenue or execute the planned activities, pose risks to both existing and future programme management. This budgetary tenet assumes significance as the states have to respond to disruption in revenues, rising expenditure burdens and changes in priorities in the wake of COVID-19 pandemic and face challenges to restore fiscal consolidation process. The article assesses the budget credibility of states in India from 2012–13 to 2018–19 following the international standard given by the Public Expenditure and Financial Accountability (PEFA) framework. It also focuses on strengthening institutional framework to utilise fiscal instruments optimally for better service delivery and development. JEL Codes: H61, H68, E62","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"45 27","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140657225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-19DOI: 10.1177/00194662241238491
Abdhut Deheri
This article assesses the long-run intertemporal sustainability of the current account deficit in India for the period 1974–2018. We employ various linear and non-linear models, such as the Johansen cointegration test, the non-linear autoregressive distributed lag (ARDL), threshold autoregression (TAR) and momentum autoregression (MTAR) models, to validate the intertemporal budget constraint. The results of the linear cointegration test reveal no cointegration between exports and imports, plus interest payment on external debt. Results from non-linear models, however, provide evidence of cointegration between the variables, implying that the intertemporal budget constraint is validated. The estimates of the TAR model reveal that the current account disequilibrium adjustment process towards the long-run equilibrium follows an asymmetric pattern. Results of the non-linear ARDL model further show that, in the long run, exports react differently to positive and negative changes in imports. Overall, our results show the presence of asymmetries in the current account adjustment process. The estimated cointegrating vector suggests that the current account deficit exhibits weak sustainability. From a policy perspective, the findings recommend implementing suitable macroeconomic and trade policies to reduce the current account deficit. JEL Codes: C30, D90, F32, F34, F40
{"title":"On the Long-run Sustainability of Current Account Deficits in India: Some Insights from Linear and Non-linear Cointegration Tests","authors":"Abdhut Deheri","doi":"10.1177/00194662241238491","DOIUrl":"https://doi.org/10.1177/00194662241238491","url":null,"abstract":"This article assesses the long-run intertemporal sustainability of the current account deficit in India for the period 1974–2018. We employ various linear and non-linear models, such as the Johansen cointegration test, the non-linear autoregressive distributed lag (ARDL), threshold autoregression (TAR) and momentum autoregression (MTAR) models, to validate the intertemporal budget constraint. The results of the linear cointegration test reveal no cointegration between exports and imports, plus interest payment on external debt. Results from non-linear models, however, provide evidence of cointegration between the variables, implying that the intertemporal budget constraint is validated. The estimates of the TAR model reveal that the current account disequilibrium adjustment process towards the long-run equilibrium follows an asymmetric pattern. Results of the non-linear ARDL model further show that, in the long run, exports react differently to positive and negative changes in imports. Overall, our results show the presence of asymmetries in the current account adjustment process. The estimated cointegrating vector suggests that the current account deficit exhibits weak sustainability. From a policy perspective, the findings recommend implementing suitable macroeconomic and trade policies to reduce the current account deficit. JEL Codes: C30, D90, F32, F34, F40","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 13","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140685171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-18DOI: 10.1177/00194662241238490
Shadman Zafar, Md.Ali Tarique
The empirical economics literature is devoid of a study that addresses the environmental effects of the agricultural subsidy regime. This deficiency has put a challenge before the policymakers and they have pursued agricultural subsidy by taking into account its private cost only, whereas social cost is much higher due to the involvement of environmental dynamics into it. The present article works to fill this void by empirically investigating the linkages between agricultural input subsidies and environmental emissions in India. To investigate the dynamic relationship, an autoregressive and distributed lag model is applied to annual time–series data from 1981 to 2019 because this method is best suited for the nature of the underlying data series. Research outcomes infer that while both fertiliser and irrigation subsidies exert positive and significant influences on emissions, irrigation subsidies have a relatively greater emission-enhancing effect. Key findings claim that the existing provision of subsidies is not sustainable because it leads to the excessive use of subsidised key inputs leading to greenhouse gas emission. The fact is that the pollution effects of even a limited amount of input are significant. A reduction in input subsidy which is leading to environmental degradation is a need of the hour. The farmers may be provided direct income support as compensation. Further, making a gradual shift towards subsidising organic farming practices called ‘smart subsidies’ and optimising input use are very crucial to achieve sustainable outcomes from the agricultural sector in the long run. JEL Codes: C22, H25, O13, Q18, Q53
{"title":"Is Input Subsidy Regime in Indian Agriculture Environmentally Sustainable? An Econometric Investigation","authors":"Shadman Zafar, Md.Ali Tarique","doi":"10.1177/00194662241238490","DOIUrl":"https://doi.org/10.1177/00194662241238490","url":null,"abstract":"The empirical economics literature is devoid of a study that addresses the environmental effects of the agricultural subsidy regime. This deficiency has put a challenge before the policymakers and they have pursued agricultural subsidy by taking into account its private cost only, whereas social cost is much higher due to the involvement of environmental dynamics into it. The present article works to fill this void by empirically investigating the linkages between agricultural input subsidies and environmental emissions in India. To investigate the dynamic relationship, an autoregressive and distributed lag model is applied to annual time–series data from 1981 to 2019 because this method is best suited for the nature of the underlying data series. Research outcomes infer that while both fertiliser and irrigation subsidies exert positive and significant influences on emissions, irrigation subsidies have a relatively greater emission-enhancing effect. Key findings claim that the existing provision of subsidies is not sustainable because it leads to the excessive use of subsidised key inputs leading to greenhouse gas emission. The fact is that the pollution effects of even a limited amount of input are significant. A reduction in input subsidy which is leading to environmental degradation is a need of the hour. The farmers may be provided direct income support as compensation. Further, making a gradual shift towards subsidising organic farming practices called ‘smart subsidies’ and optimising input use are very crucial to achieve sustainable outcomes from the agricultural sector in the long run. JEL Codes: C22, H25, O13, Q18, Q53","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140689964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-17DOI: 10.1177/00194662241238468
Pravin Chavan
Despite being one of India’s wealthiest states, Maharashtra has the highest number of farmer suicides. Research links farmer suicides to monsoon failure, drought and a lack of social security. To make the state drought-free by 2019, the state government launched the ‘Jalyukt Shivar Scheme’ on 26 January 2015. According to the State Economic Survey 2019–20, the programme has spent ₹9,488 crore on 6.28 lakh works in the 5 years since its inception, has eliminated drought in 19,655 villages, and has stored 26.52 TMC of water. However, regardless of the government’s assertions, experts and non-government organisations question the scheme’s efficacy and scientific validity. After the 2019 state assembly elections, the new Maharashtra Vikas Aghadi Government discontinued the scheme. Nevertheless, examining the scheme’s implementation and effectiveness would shape future policy and watershed project execution. The study has assessed the farmer’s perceived effectiveness of the scheme. To assess the beneficiary farmer’s perceived impact of the scheme, the Jalyukt Shivar impact assessment scale was developed. Confirmatory factor analysis and Cronbach’s alpha ensured the validity and reliability of the scale. Structural equation modelling shows that public participation is a significant predictor of the irrigation impact of the scheme, and irrigation impact mediates the outcome of agriculture and environmental impact, socio-economic impact and impact on women. The findings reveal that the programme remained a supply-side initiative in the absence of people’s participation. For the watershed project to achieve its goals, the study advocated active public participation at all stages of its implementation. JEL Codes: Q15, Q18, Q25, Q28, R58
{"title":"People’s Participation and Impact \u2028of Micro Watershed Project: An Analysis of the Beneficiary Farmer’s Perceived Impact of Jalyukt Shivar \u2028of Maharashtra, India","authors":"Pravin Chavan","doi":"10.1177/00194662241238468","DOIUrl":"https://doi.org/10.1177/00194662241238468","url":null,"abstract":"Despite being one of India’s wealthiest states, Maharashtra has the highest number of farmer suicides. Research links farmer suicides to monsoon failure, drought and a lack of social security. To make the state drought-free by 2019, the state government launched the ‘Jalyukt Shivar Scheme’ on 26 January 2015. According to the State Economic Survey 2019–20, the programme has spent ₹9,488 crore on 6.28 lakh works in the 5 years since its inception, has eliminated drought in 19,655 villages, and has stored 26.52 TMC of water. However, regardless of the government’s assertions, experts and non-government organisations question the scheme’s efficacy and scientific validity. After the 2019 state assembly elections, the new Maharashtra Vikas Aghadi Government discontinued the scheme. Nevertheless, examining the scheme’s implementation and effectiveness would shape future policy and watershed project execution. The study has assessed the farmer’s perceived effectiveness of the scheme. To assess the beneficiary farmer’s perceived impact of the scheme, the Jalyukt Shivar impact assessment scale was developed. Confirmatory factor analysis and Cronbach’s alpha ensured the validity and reliability of the scale. Structural equation modelling shows that public participation is a significant predictor of the irrigation impact of the scheme, and irrigation impact mediates the outcome of agriculture and environmental impact, socio-economic impact and impact on women. The findings reveal that the programme remained a supply-side initiative in the absence of people’s participation. For the watershed project to achieve its goals, the study advocated active public participation at all stages of its implementation. JEL Codes: Q15, Q18, Q25, Q28, R58","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 43","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140691515","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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