1ICAR-Indian Agricultural Statistics Research Institute, New Delhi, 110012, India
2Division of Agricultural Economics, Indian Agricultural Research Institute, New Delhi, 110012, India
Online published on 13 December, 2019.
This paper assesses the impact and performance of the Rashtriya Krishi Vikas Yojana (RKVY) in incentivizing states to increase public investment in agriculture and allied sectors, its main aim. The eastern states performed well, followed by the central and southern states. State panel data were used to depict the cointegration and direction of causality between RKVY expenditure and SPAE and between SPAE and AGGSDP. Through cointegration analysis, a long-run and short-run relationship was found between RKVY expenditure and SPAE, and the direction of causality is from RKVY expenditure to state expenditure in agriculture. Hence, it was concluded that RKVY expenditure has made a positive impact on enhancing state investment capacities in the agriculture sector.
