The Political Economy Puzzle of Indian Agriculture: A Political Settlement Analysis

In their influential paper for the National Council of Applied Economic Research, Chatterjee and Kapur raised some fundamental questions about Indian agriculture and why it has not transformed with economic development. They identify six important ‘puzzles’ in Indian agriculture, one of which is the political economy puzzle. This puzzle refers to the fact that farmers have not been able to leverage their power of land and numbers to economically benefit themselves. The essay utilizes the political settlements framework to understand the underlying causes of this puzzle. Such analysis is important as it recognizes the historical and sociocultural traditions to explain the economic phenomenon of the backwardness of Indian agriculture.