Archive · 28 Oct 2025
India's Agricultural Yields Lag China Due to Subsidy Mindset
India's farms don't produce as much food per acre as China's, which is a problem according to an economist named Devesh Kapur.
He says that the Indian government hasn't focused on helping farmers grow more food.
Instead, the government gives out subsidies.
Also, past leaders looked to countries like Russia and China for ideas instead of countries like Japan and Korea, who focused on agricultural productivity.
This has led to slower growth in important crops like cereals.
Meanwhile, areas like fruit and vegetable farming are doing well because the government is less involved.
It's like India missed opportunities to make its farms more efficient.
India's agricultural yields significantly lag behind China's.
Economist Devesh Kapur attributes this to a subsidy-focused approach.
Land reforms faced challenges due to resistance from landowners.
The focus on subsidies is contrasted with the early focus on increasing yields during the Green Revolution.
India's economic models looked to the wrong countries, missing examples of agricultural success.
- Who
- Economist Devesh Kapur and co-author Arvind Subramanian
- What
- Discussed India's agricultural productivity lagging behind China's.
- When
- During a Carnegie Endowment podcast.
- Where
- India
- Why
- Due to a focus on subsidies and neglect of yield-raising strategies and early economic planning
Subsidy-Based Agriculture
Yield-Focused Agriculture
Agricultural Approach
Subsidy-Based Agriculture
Emphasis on subsidies and state control of key agricultural areas (e.g., cereals).
Yield-Focused Agriculture
Prioritizing strategies to increase agricultural yields, such as those used during the Green Revolution.
- Yield Difference
- India's yields lag China's by nearly half in some crops
- Expert
- Devesh Kapur, professor at Johns Hopkins University
- Book
- A Sixth of Humanity: Independent India's Development Odyssey
- Co-author
- Arvind Subramanian, former chief economic adviser
- Focus Areas of Growth
- Horticulture, animal husbandry
- Areas with Poor Growth
- Cereals, subject to state subsidies and price controls