Does Agriculture Production Have An Impact On Economic Growth? India's Experimental Evidence

Abstract

The primary aim of the research is to address the question 'Matters of agriculture for economic growth?' In order to do this, over the period 1961 to 2016, we have to examine the connection between farming production and economic growth in India. In this research, the methods of vector error correction and co-integration are utilised to analyse the connection between farm production and economic growth. The Johnson test results show that the balance between agricultural production and economic development in India is long-lasting. The vector error correction test shows that University causalities extend over the long term, from economic growth to farming. This implies economic growth leads to farming, but agricultural production does not, in the long term, contribute to economic growth. But in the near term, there is a bidirectional causation between agricultural and economic growth. In the short term, economic growth leads to farming and production leads to economic growth.