ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Growth, Structural Change and Wage Rates in Rural India

Examining the structural transformation in India and its developed states to know whether they have passed the Lewis turning point, this paper finds that there was slow structural change in labour markets at the national level. But states such as Kerala, Tamil Nadu, Himachal Pradesh, Punjab and Haryana are on the verge of the Lewis turning point with faster non-farm sector growth, high per capita income, urbanisation, higher agricultural labour productivity, and higher wage rates. On the other hand, states with rapid economic growth such as Gujarat, Andhra Pradesh, West Bengal and Maharashtra have lower wage rates and higher rural poverty. But they too have the potential to pass the Lewis turning point if structural change occurs soon.

Pulses Production Technology: Pulses Production Technology:

India is the largest producer and consumer of pulses in the world. However, pulses production has been stagnant at between 11 and 14 million tonnes over the last two decades. Per capita pulses consumption over the years has come down from 61gm/day in 1951 to 30 gm/day in 2008. This paper analyses the status of pulses production technology, constraints in cultivation of pulses and the possibilities of increasing production. It emphasises the expansion of area under short duration varieties, development of multiple disease/pest resistance varieties, use of micro-nutrients like zinc and sulphur and increase in area under rabi pulse crops to increase pulses production. The minimum support price is not effective for pulse crops; prevailing market prices should be taken into account while fixing the msp to bridge the gap between demand and supply.

Policy Options for India's Edible Oil Complex

Stagnating oilseed yields for the last two decades and an inefficient and underutilised processing sector have resulted in an uncompetitive complex in India. The country's commitments at the World Trade Organisation have led to increased edible oil imports and a simultaneous decline in area under oilseeds. India needs a long-term edible oil policy to improve competitiveness by bridging the existing technology and yield gaps.

Productivity Growth in Regional Rural Banks

This paper examines total factor productivity technical and scale efficiency changes in regional rural banks by using data from 192 banks for the period 1996 to 2002. Rural banks showed significant economies of scale in terms of assets and number of branches under each bank. Total factor productivity growth of rural banks was higher in profitability than in service provision during liberalisation. Banks located in economically developed as well as low banking density regions exhibited significantly higher productivity growth. Overall there is a convergence of efficiency of rural banks during the study period. Parent public sector banks have no influence on the efficiency and productivity growth of rural banks. There is a justification for opening new banks in low banking density regions as efficiency and productivity growth of rural banks in these areas are high. There is also a case for mergers and enlargement of the asset base and the number of branches under each rural bank.

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