Tlie Case of India 95 



Factor-share data (appendix 10) show a general decline in the 

 labor shares in all states except Punjab, Haryana, and 

 Maharashtra. It is of interest to note that wages rose significantly 

 in these states over time. The share of animal power declined in 

 all states as opposed to the modern inputs share, which rose sig- 

 nificantly in all states. 



The contrast between the three periods in table 6.1 is of signifi- 

 cance. In period 1 (the 1950s) all states except West Bengal, 

 Assam, and Orissa recorded residual productivity growth of 

 respectable proportions. The negative results in West Bengal and 

 Orissa were offset in period 2, suggesting that they were probably 

 due to weather effects. In most states the measured contribution 

 to growth of the modern inputs was relatively low. 



Increased contributions of modern inputs characterize period 2 

 in most states, although the relatively even regional pattern dis- 

 played in period 1 disappears. Eight of the fifteen states show 

 negative productivity growth or negligible positive growth. Period 

 3 shows the effects of the exceptional performance of the states of 

 Harayana, Punjab, Rajasthan, and Gujurat. 



The dominant feature of these data is the increasing regional 

 disparity. Individual state indexes showed actual declines over the 

 entire period in Bihar and West Bengal, and no increase in 

 Assam, Kerala, Maharashtra, and Andhra Pradesh. The all-India 

 index of productivity rose from a base of 100 in 1952-55 to 1 17 in 

 1971. The comparable index of land productivity (aggregate yield 

 of crops per hectare) was 141 in 1971. 



Regional Investment in Agricultural Research 



Preparatory to the analysis of the determinants of productivity 

 changes in Indian agriculture, we present summary information 

 for the research system in India. The data are from Mohan, Jha, 

 and Evenson (1973). In table 6.2, time series data on research in- 

 vestment in constant 1968 rupees are shown. By international 

 standards the spending on research of only two-tenths of 1 per- 

 cent of the value of production is relatively low. It is roughly in 

 line with other developing countries and much below the I per- 

 cent that many developed countries have consistently spent over 



