ABSTRACT
This chapter examines how far tendencies towards capitalist development have appeared in Punjab agriculture and looks at the process of differentiation of the peasantry. It discusses what kind of sectoral structure of output and of employment has emerged in Punjab and the structure of the manufacturing sector in particular. Relationships between different sections of the agricultural community, and more generally the viability of agricultural growth, depend not only on what is happening within the agricultural sector but on trends in the structure of production as a whole. Since independence the role and functions of such money-lending have changed substantially under the impact first of the massive growth of facilities for institutional credit, and secondly of technological advance which made farming itself far more profitable. The rate of growth of labour productivity in the non-agricultural sector was thus well over twice that in the agricultural sector, despite the Green Revolution.
