This book uses a unique approach that matches Indian states and African countries based on a variety of indicators. Valuable new insights on patterns of structural change in Africa and India are gained to better understand the drivers of economic development, agricultural growth, nutrition outcomes of structural transformation and the role of public spending in shaping development dynamics, thereby facilitating mutual South-South learning.
Based on the analysis, the following recommendations are put forward:
- Investments in the development and scaling of locally relevant innovations will be key to sustainable intensification and value-addition in the agricultural sectors. Priority areas include investments in irrigation and water management, digitalisation, climate-smart agriculture, post-harvest management, agroprocessing and value chain efficiency.
- Supporting agricultural diversification into livestock and high-value crops will empower smallholder farmers, improve nutrition and expand value chains. Shifting to high-value commodities requires investment in market infrastructure and a well-connected road network, including through private investment and public-private partnerships.
- African and Indian policymakers should increase public spending on agriculture, particularly in underfunded areas such as R&D and extension services, to boost productivity and drive technological adoption. Strengthening extension services is especially important in regions with significant information gaps that hinder the uptake of modern agricultural inputs.
- In African countries and Indian states, reforming inefficient input subsidy programs and reallocating resources toward public goods like agricultural infrastructure, R&D and extension services is essential for long-term growth and productivity. Shifting funds from private goods, such as subsidies and food aid, to public investments will enhance productivity and resilience in these regions.
- In both regions, nutrition-sensitive agricultural policies should be integrated with social sectors such as water, sanitation and women’s education. Governments should foster innovation and cross-sectoral linkages, replicating proven interventions such as biofortification and targeted social programs, while prioritising investments in agricultural infrastructure to reduce child malnutrition.
- A balanced approach to public spending is needed in both African countries and Indian states, even under fiscal constraints, to avoid compromising critical agricultural investments for short-term social protection programs. Agricultural investments are essential for long-term growth, poverty reduction, and improved food security and nutrition outcomes, and must be protected in times of fiscal pressure.
- Development partners need to take the diversity in growth trajectories, sectoral characteristics and fiscal environments in African countries and Indian states into account when deciding on their level and type of engagement. Such a targeted approach is essential to ensure that their development investments are aligned with local priorities and capabilities.
Link to the book: Africa and India_Book.pdf