Technological Change and Functional Income Distribution Effects in Indian Agriculture: An Econometric Analysis

With the introduction of new production technology into the wheat farming sector in Indian agriculture, a considerable increase in output per acre (about 40 percent in the Ferozepur district of Punjab) has been recorded. This 'new found' growth in Indian agriculture has given rise to two important basic issues in the area of development economics. What are the sources of this 'new found' growth in output? What are the effects of this new production technology on employment and income distribution? . These questions are consistent with shifting emphasis from the narrower considerations of economic growth to the broader issues of economic development such as unemployment, poverty and income distribution. The present study focuses its attention on evaluating the functional income distribution effects of new technology.