Income, saving and investment patterns in rural India

When the green revolution tech nology was introduced in the mid sixties, great expectations were raised as to the beneficial effects it could induce into every class of farmer by increa sing food production and in come distribution levels. But its latter-day performance has belied these expectations and it seemed that only those who had the necessary absorptive capacity and base could benefit.

To evaluate the benefits through increased income, sav ings and investment, various Agro-Economic Research Cen tres were asked by the Ministry of Agriculture to undertake stu dies in various progressive districts. The present study summarizes the results for 1969-70 to 1971-72 in respect of cultivators and agricultural labourers in 15 States. Income, saving and investment patterns are compared taking into acco unt the distribution of income among farms, the structure of the assets, consumer expendi ture and saving and investment patterns.

Though the saving-income ratio was very low, it is presumed that the new technology would have raised it by now. The study would be useful in understand ing the technology-income distribution nexus and the nece ssity to evolve an equitable technology for rural develop ment.