ABSTRACT

In the context of ongoing discussions of SDGs and effective ways to support development in low-income settings, the agricultural sector assumes importance for its multiplier effects in India. The incongruence between agriculture and institutions, low public investment in rural infrastructure and marketing structures have largely been responsible for its low growth performance. Developmental literature shows evidence of a positive impact of infrastructure on agricultural productivity, and much has been said about the volume of infrastructure provision and its influence on agricultural development. Recent additions in literature suggest the importance of infrastructure quality as a driver of economic growth. In this context, the chapter presents the state of infrastructure in rural areas by considering not only parameters of quantity, but also parameters of quality in influencing development outcomes. By identifying different dimensions of quality, the chapter seeks to examine the role of economic and institutional infrastructure and human capital in influencing agricultural growth, taking the case of Karnataka. Using a linear regression framework, the analysis focuses on understanding differences in infrastructure access and quality which can possibly offer explanations for agricultural growth differentials across the regions of Karnataka. The chapter provides evidence for the role quality plays in determining efficiency of utilization of available infrastructure facilities in influencing productivity growth.