Drivers of Agricultural Growth in British India

Abstract

This paper investigates the impact of public investments on agricultural incomes across colonial India. Growth amidst pervasive aridity and monsoon volatility required government interventions and the imperial government prioritised the construction of railroads over canal irrigation. We find that initial railroad expansion had a positive effect on incomes in select districts though railway access did not affect cropping patterns, the sensitivity of agricultural output to rainfall volatility, nor incomes between 1890 and 1930. Districts with access to canal irrigation saw crop upgrading, declining output sensitivity to climate volatility and income growth. The paper shows that arid areas benefitted most from access to a canal. Small irrigation investments explain why India remained poor during British rule.

Keywords: Geography, Agriculture, Markets, Irrigation, Growth, South Asia