Infrastructure and Agricultural Output in North-East India: Evidence from a Panel Data Analysis

Abstract

Infrastructure is an important component of agricultural development because it supports connectivity, energy access, transport, storage and other production-related services. This study examines the growth of selected infrastructure indicators and their association with agricultural output across the eight states of North-East India during 2011–2020. State-level secondary data were compiled from official statistical and institutional sources. Compound annual growth rates were estimated to assess changes in agricultural output and infrastructure, while pooled ordinary least squares, fixed-effects and random-effects panel models were applied to examine the relationship between agricultural gross value added and road, power, transport and storage infrastructure. Transport recorded the highest reported infrastructure growth rate, followed by health facilities, while roads, power, irrigation, education and banking infrastructure also expanded during the study period. Model-specification tests favoured the fixed-effects model over the pooled and random-effects alternatives. Under the preferred specification, road infrastructure, power consumption and transport were positively and significantly associated with agricultural gross value added, whereas storage capacity was not statistically significant. The findings indicate that differences in physical infrastructure are associated with variations in agricultural output across the north-eastern states. Continued attention to road connectivity, reliable power supply, transport and appropriately located storage facilities may support agricultural development. Interpretation of the results should nevertheless recognise the limited ten-year panel and the omission of climatic, technological and policy-related determinants of agricultural output.