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Nexus in Income, Saving and Investment among Agricultural Households: A State and Farm Level Analysis!

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  • Bathla , Seema
  • Kumar, Anjani
  • Saroj, Sunil

Abstract

The paper estimates the income, saving and saving gap among agricultural households to understand their investment behaviour based on a comprehensive All India Financial Inclusion Survey (NAFIS) 2016-17 of NABARD, Mumbai. The descriptive and empirical analysis shows saving and investment of cultivators are determined by income, among several other factors. It further reveals a weak association between household’s saving rate and investment in agriculture and allied activities. This may imply households’ dependence on borrowings for investment finance. The paper suggests state and farm size specific interventions along with increase in public investments, suitably tailored to augment household income and capital formation in agriculture.

Suggested Citation

  • Bathla , Seema & Kumar, Anjani & Saroj, Sunil, 2022. "Nexus in Income, Saving and Investment among Agricultural Households: A State and Farm Level Analysis!," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 3), September.
    • Handle: RePEc:ags:inijae:345206
    DOI: 10.22004/ag.econ.345206
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    References listed on IDEAS

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    1. repec:phd:pjdevt:jpd_1990_vol__xvii_no__2-a is not listed on IDEAS
    2. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
    3. Dhawan, B. D., 1996. "Relationship between Public and Private Investments in Indian Agriculture with Special Reference to Public Canals," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 51(1-2), June.
    4. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
    5. Lamberte, Mario B. & Bautista, Romeo M., 1990. "Comparative Saving Behavior of Rural and Urban Households in the Philippines," Working Papers WP 1990-15, Philippine Institute for Development Studies.
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