Agricultural Value Addition and Economic Linkages in Bihar (2000-2024): An Empirical Analysis of Growth Dynamics

Authors

  • Jitendra Kumar Retired Sr. Jt. Director, DES, Bihar, Bengaluru, India Author

DOI:

https://doi.org/10.55578/jedip.2506.002

Keywords:

Gross Value Added (GVA), Agricultural Production, Diversification, Growth Determinants, Price Effects

Abstract

This study critically examines the structural dynamics and economic significance of agricultural production in Bihar, with a focused assessment of its contribution to Gross Value Added (GVA). Utilizing a robust dataset covering the period 2000 to 2024, the research applies descriptive statistics and multiple linear regression analyses to quantify the relative contributions of key agricultural sub-sectors. The Ordinary Least Squares (OLS) method is employed to identify the principal determinants of agricultural growth, while a growth accounting framework decomposes sectoral expansion into drivers such as area expansion, yield improvements, technological advancement, and price effects.

Empirical findings reaffirm the pivotal role of agriculture in Bihar’s economic structure, with crop cultivation and livestock rearing emerging as the dominant contributors to agricultural GVA. The analysis highlights that diversification towards high-value crops and the adoption of modern technologies serve as significant catalysts for sustained sectoral growth. Additionally, indicators of agricultural intensification—such as fertilizer use per hectare, gross capital formation, and cropping intensity—are shown to exert a strong influence on productivity trends and developmental outcomes.

The study emphasizes the necessity of transitioning to resource-efficient, technology-enabled agricultural systems to enhance productivity and maximize economic returns. Accordingly, it recommends targeted policy interventions, including strategic investments in high-potential sub-sectors, promotion of integrated farming systems, and systematic efforts to improve livestock productivity. These measures are deemed essential for fostering long-term agricultural growth and bolstering Bihar’s overall economic resilience.

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Published

2025-06-20

Data Availability Statement

No new data were created or analyzed in this study. Data sharing is not applicable to this article.

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How to Cite

Agricultural Value Addition and Economic Linkages in Bihar (2000-2024): An Empirical Analysis of Growth Dynamics. (2025). Journal of Economic Development, Innovation and Policy, 1(1), 19-38. https://doi.org/10.55578/jedip.2506.002