Structural transformation and rural development in Haryana: Five decades of economic and agricultural change (1970-2024)

Introduction

Rural transformation is a proactive and positive process of change and development of rural communities in the context of national and global social and economic changes (Long, Zou, Pykett, & Li, 2011; Wang, Khan, & Zhang, 2013) [18,24] . It is usually characterized by changes in civic amenities, female literacy, gender ratio, employment structure, agricultural intensity, crop selection pattern, farm income, labour productivity and major improvements in rural housing and economic and social conditions resulting from industrialization and urbanization (Kurien, 1980; Ravallion and Datt, 2002) [17,19] . Agricultural transformation as embedded in rural transformation (Jayne et al. 2018) [15] while rural transformation is embedded into a broader process of structural change (Berdegué et al. 2013) [2] . Rural transformation embraces a combination of agricultural transformation plus growth of non-farm employment of rural labour (Huang and Shi, 2021) [12] . It includes the change occurring within the agricultural sector and employment shifts between farm and off-farm activities (Huang, 2018) [11] . Rural transformation involves rising agricultural productivity, increasing commercialization and marketable surpluses and diversification of production patterns and livelihoods (IFAD, 2016) [14] . Rural transformation brings productivity improvements, develops the non-farm economy and generates benefits for migrants and their communities of origin and destination (FAO, 2017) [9] . Structural transformation is characterized by a shift in labour and capital from agriculture to industry and service sector is a key of sustained economic development (Timmer, 2009) [23] . This transition not only entails a reallocation of resources but also promotes productivity enhancements, modernization of economic systems and improvements in people's living standards. In the Indian context, the pace and pattern of such www.extensionjournal.com transformations have been regionally uneven due to variations in infrastructure, governance and policy enactment (Ahluwalia, 2002; Dholakia, 2003) [1,8] . Despite rampant urbanization, India is a country of villages where a staggering 69 per cent (833.50 million) of population (1210.20 million) still abides in rural areas as per census 2011 and depend on agriculture and allied activities, including animal husbandry and fisheries, for their livelihood (Birthal and Negi, 2012) [16] . The rural people are mostly employed in agriculture and related informal sector activities, but contribute to a disproportionately low share (16%) of gross domestic product. Also, they are characterized by low values in various development indicators. Haryana being carved out of Punjab on November 1, 1966 is largely considered as an agrarian state. The state with a geographical area of 4.42 million ha along with limited natural resources, having location advantage, coupled with industrial-friendly policies and improved infrastructure, is evolved as a rapidly growing state of India. Initially state is largely benefited from Green Revolution supported by favourable policy initiatives as well as assured irrigation water from Bhakra Dam (1963) and Western Yamuna Canal system (1970), which figured as second largest contributor to central pool of foodgrains simultaneously resulting progressively diversified economy beyond agriculture (Goel, 2019) [10] . The present study aims to examine the nature of rural transformation in Haryana over the decades. It evaluates sectoral contributions to GSDP, capital formation, demographic features, development in agriculture sector and rural changes since inception of state (1970-2023). The findings offer insights into regional economic development, informing policies for inclusive and sustainable growth in rural development particularly in agriculture sector.

Material and Methods

The key indicators of rural transformation include gross state domestic product (GSDP) employment, across various sectors, capital formation, per capita income, contribution of various sectors in state economy. Agriculture being key component of rural development was evaluated using indicators such as cropping pattern, cropping intensity, irrigation intensity, extent of resource use (fertilizers and chemicals consumption), crop yield, market in structure, farm machinery & implements, storage capacity of farm produce, credit access etc. The study was based on secondary data extracted from various published and unpublished sources i.e., Directorate of Horticulture, Haryana Statistical Abstract of Haryana, Economic Survey of Haryana, Department of Animal husbandry and Dairying, Haryana, Agricultural Statistics at aGlance, for the period 1970-71 to 2023-24. The whole period of study has been divided into five sub-periods and overall period to evaluate decadal progress in rural sector. Average, percentage, compound growth rates were computed for all sub-periods and overall periods.

Results and discussion

Economic development in Haryana

Sectoral composition of GSDP: Haryana's economic structure has experienced a marked transformation over the past three decades (1990-2024). The share of agriculture and allied activities in Gross State Domestic Product (GSDP) has steadily declined from 60.00 per cent in 1970-71 to 17.92 per cent in 2023-24. In contrast, at present industrial and services sectors have emerged as primary drivers of state income, with contribution of 29.06 percent and 53.00 per cent respectively (Table1and Fig 1). Agriculture, once the backbone of Haryana's economy, now shared low proportion (17.92%) of state output despite retaining over 45 per cent of the workforce (Goel, 2019; Sharon, 2023) [10,34] [10,3] .This upward economic trajectory reflected successful public-private collaborations, targeted sectoral investments, policy initiatives aimed at liberalization and diversification (Ahluwalia, 2002; Dholakia, 2003) [1,8] . www.extensionjournal.com Public investment, particularly in agriculture &allied activities irrigation, road networks, power supply, special economic zones, industrial parks, communication and trade laid the foundation for inclusive growth. Simultaneously, private sector investments in real estate, infrastructure, automobiles, education, and healthcare have spurred growth and regional development in the state (ICRISAT, 2014; CABI, 2016) [13,34] . The quantum upturn in per capita increase growth attributed to increasing non-farm employment, industrial development and improvements in productivity across sectors and quantum jump in farm productivity (Goel, 2019; Sharon, 2023) [10,34] . Despite this impressive progress, income disparities persist between urban and rural areas and across districts. Urban centres such as Gurugram, Rewari and Faridabad had benefited more from manufacturing hubs, IT sector, residential areas and proximity to Delhi, whereas rural hinterlands lagged in access to infrastructure, higher education and formal employment (Ahluwalia, 2002; Dholakia, 2003) [1,8] .

Labour wages for agricultural operations and skilled operations: Wage growth for both agricultural and skilled labourers in Haryana has mirrored the rising income trends. Between 2004 and 2024, average wages per day for agricultural operations for male labourer increased from ₹101 to ₹ 565, with a CAGR of 9.40 per cent. These wages include payment for farm operations such as ploughing, sowing, weeding, cotton picking and harvesting. Similarly, skilled labour wages per day rose from ₹166 to ₹718 for blacksmiths and from ₹175 to ₹759 for carpenters, shimmering CAGRs of 7.82 and 8.32 percent, respectively (Fig 4). The incremental increase in wages has not only improved income security for rural workers but has also contributed to reduced migration gravity and enhanced rural consumption (Chand et al., 2017; Sharon, 2023) [7,34] . However, seasonal wage volatility and gender disparities in employment opportunities still trigger contemporary challenges to equitable labour outcomes. [3] . No doubt literacy rate both in male and female in urban area was higher however much progress also was achieved in rural area. Incremental increase was observed in educational institutes and at present 24866 schools (primary, middle and secondary), polytechnics (200), technical institutes (94), higher educational institutes like colleges (374) and universities (58). Within a radius of 20 Km of each village, one higher educational institute and polytechnic/industrial training institute is located with at least middle/higher school within village. Educational infrastructure growth in recent decade such as the increase in primary and middle schools, establishment of both public and private colleges, industrial training institutes and universities supported the development of human capital. (ICRISAT, 2014; CABI, 2016) [13,34] . Haryana's literacy rate has significantly improved over the years due to targeted educational policies and initiatives. The improvements might be attributed to government programs promoting education, such as providing infrastructure, scholarships, and support for female education. These measures increased school enrollment and retention rates, contributing to higher literacy, particularly among rural females. Additionally, growing urbanization and economic development have emphasized the importance of literacy for economic opportunities, further boosting education. Service sector also created demand of skilled labour and ultimately favour promotion of education in the state.

Farm holdings:

The total number of operational holdings increased 13.47 lakh (1985-86) to 15.65 lakh (2015-16) in Haryana (Fig 6). The distribution pattern showed a significant shift, with marginal holdings accounting for the highest share at 51.26 per cent, followed by small holdings at 20.06 per cent, semi-medium holdings at 13.74 per cent, medium holdings at 9.92 per cent, and large holdings comprising only 5.02 per cent of the total (15.65 lakh) in 2015-16. This trend highlighted the continuing fragmentation of land due to population pressure and inheritance laws. The dominance of marginal and small holdings reflects a structural challenge in agriculture, affecting economies of scale and productivity (Chand et al., 2011) [6] .

Land use pattern, cropping intensity and irrigation intensity:

Land use dynamics in Haryana have undergone notable transformations over the decades, reflecting shifts in agricultural intensity, urban expansion, and ecological balance (Sidhu et al., 2020).. The total reported area has shown a steady decline, decreasing from 4,402 thousand ha in 1970-71 to 4,354 thousand ha in 2022-23 (Table 3). Land allocated for non-agricultural purpose increased over the period to expansion of infrastructure, residential areas, industrial units, IT sector and public amenities. www.extensionjournal.com The net area sown increased slightly from 81.20 per cent to 82.33 per cent of total area in same period converting barren and problematic land for crop cultivation suggesting sustained reliance on agricultural land for livelihood and agriculture production. Haryana's net irrigated area have expanded significantly over the decades due to manifold increase in number of tube wells from 1.04 lakh in 1970-71 to 8.37 lakh in 2023-24 (Fig 7). Irrigation infrastructure, especially tube well has been crucial, with diesel and electric pump sets growing at CAGRs of 3.68 and 2.99 per cent, respectively. Besides, solar pumps (1.55 lakh) have been installed up to March, 2025 as incentivised by state govt to reduce burden on thermal power generation for agriculture sector. Solar pump technology not only ensure irrigation water to crops but also 100% savings on fuel, zero carbon emissions and lower maintenance cost. By 2023-24, over 85 per cent of the net sown area was under irrigation underlining the expanded irrigation facilities. The assured irrigation contributed to a rise in cropping intensity, which now exceeds 180 per cent, enabling multiple cropping and higher land productivity. However, these gains have also raised concerns regarding groundwater depletion and ecological sustainability (ICRISAT, 2014; Sharon, 2023) [13, 34] . Meanwhile, the total cropped area witnessed a significant rise from 4,957 thousand ha (78.28%) in 1970-71 to 6,863 thousand ha (157.62%) in 2022-23, indicating cropping intensity of 191 per cent through multiple cropping in a year. The net irrigated area increased manifold from 1532 thousand ha in 1970 to 3360 thousand ha in 2020 indicating irrigation intensity of 193 per cent in last five and half decade. However, the area under forest cover declined substantially from 99 thousand ha (2.24%) in 1970-71 to 31 thousand ha (0.71%) in 2022-23, reflecting growing environmental concerns. Better access to institutional credit at reasonable interest rate through PACS located in each village as well as a network of branches of Regional Rural Bank (697) private and commercial banks (5643) in the state played a key role in enabling farmers to invest in farm machinery and inputs (Chand et al., 2017) [7] . The significant increase in nutrients and chemical usage as well as farm mechanisation revealed adoption of HYVs/hybrid, improved production and protection technologies in the state for attaining higher farm productivity. Timely availability and adequate amount of credit also triggered the use of modern inputs and latest farm technologies at field level.

Nutrients and chemical usage, Farm mechanization and credit access for agriculture

Road connectivity, market infrastructure and storage for farm produce: Rural area is well connected with towns and cities in Haryana with metalled roads. Each village of the state is linked to adjoining villages as well as near towns or cities or regulated market with metalled roads. State has vast network of state and national highways along with rail connectivity to each district headquarter for timely reach and fast movement. The number of regulated markets showed tremendous increase and at present, 114 principal markets and 92 sub-yards are located in state for timely disposal of farm produce, ensuring price transparency and fair trade. At present 108 out of 114 regulated market connected with e-NAM portal. State has made an investment of 2,978.28 crores for roads and bridges sharing 15-94 percent of total capital expenditure in 2023-24 for smooth fast flow of transport and public vehicles. The road length enlarged from 11516 km to 32616 km in last five and half decade (1970-2024).

Storage infrastructure has also expanded rapidly in the state. At, present, total storage capacity of farm produce in the state comprising of FCI storage (11.63 lakh tonnes), State food & supply department (5.22 lakh tonnes), HAFED (22.62 lakh tonnes), State warehousing (16.64 lakh tonnes), central state warehousing (4.55 lakh tonnes) and privet Entrepreneur Grantee Scheme (PEGS) (34.02 lakh tonnes) is 104.37 lakh tonnes increased from 1.79 lakh in 1970-71 due to requirement of bulk storage of foodgrain to regulated supply for PDS, Mid-Day Program and Supplementary Nutrition Programme. Warehousing reduced post-harvest losses and enabled farmers to secure loans by using warehouse receipts as collateral often covering 75-80 per cent of the stored produce's value (Sharon, 2023) [34] as well as to harvest better prices in lean period. The development of regulated markets, cold storage facilities, and warehousing infrastructure has further improved agricultural value chains, reduced postharvest losses and boosted farmer incomes (CABI, 2016) [34] .

Area, production and productivity of principal crops

Haryana's agricultural landscape during the early Green Revolution period was characterized by a strong focus on food grain production, particularly wheat and rcie (Kumar et al., 2019) [16] . In 1970-71, wheat dominated the cropping pattern, covering 11.29 lakh ha accounting for 22.77 per cent of the total cultivated area (4,957.00 thousand ha). Rice occupied 2.70 lakh ha contributing 5.43 per cent to the total (Table 4). Other crops cultivated in the state like pulses (23.37%), total food grains (78.02%), sugarcane (3.14%), cotton (3.89%), oilseeds (2.88%) and horticultural crops (0.70%). The trend continued in subsequent years, with fluctuations in the area coverage under various crop. After 53 years (2022-23), area coverage under wheat improved to 24.00 lakh ha sharing 36.55% of total cropped area (6565.00 thousand ha) followed by rice (27.07%), pulses (0.86%), total food grain (73.08%), sugarcane (1.64%), cotton (8.94%), oilseeds (13.76%) and horticultural crops (6.39%). The area twisted towards wheat and rice due to evolution of HYVs, expansion of irrigation facilities, amount of risks involved and procurement at MSP by govt agencies. Sharp decline in pulses area was reported over years due to risk involved, low profitability and vulnerability to biotic and abiotic stresses. Area under high value crops also increased significantly over the period due to various initiatives and incentives of state government, increased domestic demand and changes in consumer dietary habit and export potential.

Haryana's agricultural production has undergone significant structural changes over the decades, driven by policy incentives, technological advancements, and market-oriented shifts in cropping patterns (Singh and Hooda, 2021) [22] . In 1970-71, the total agricultural output stood at 59.29 lakh tonnes, with wheat contributing 39.50 per cent, rice 7.76 per cent, pulses 14.03 per cent, and total food grains accounting for 47.71 lakh tonnes or 80.47 per cent of the total production (Table 5). Other key contributors included sugarcane (11.92%), cotton (1.06%), oilseeds (1.67%), and horticultural crops (4.87%). The overall growth in production attained 1.71 per cent in wheat followed by rice (3.46%), total food grains (0.01%), while minor positive growth in area under sugarcane (0.03%), cotton (0,05%) and oilseeds (0.77%) in same period. The incremental increase in production of wheat, rice, cotton, oilseeds and total horticultural crops was due to assured procurement at MSP, high yield potential and profitability, expansion of irrigation, shift in cropping pattern, govt missions, introduction of Bt cotton etc. Total agricultural production had risen significantly to 322.68 lakh tonnes in 2022-23. The share of wheat declined marginally to 34.76 per cent, while rcie showed a substantial surge to 21.34 per cent.

In contrast, the share of pulses declined sharply to 0.15 per cent, whereas oilseeds grew to 5.29 per cent of total production. The percentage increase in wheat productivity over previous year was highest in 1990-91 accounting to be 47.43 per cent over 1980-81, while rice recorded a substantial rise to 52.23 per cent in first decade. However, pulses and oilseeds experienced decline of 11.94 per cent and 12.56 per cent, respectively during 1970-71 to 1980-81. The growth rate in productivity was 6.99 per cent in rice followed closely by pulses (3.67%), wheat (2.98%) and total food grains (2.96%), while sugarcane experienced negative growth of 2.47 per cent in first decade (1970-1980). The growth in productivity of oilseeds in last five decades (1970-2021) was recorded to be 2.73 per cent followed by wheat (2.07%), sugarcane (1.63%), cotton (1.32%), pulses (1.30%), rice (1.00%) with growth of 2.89 per cent in total food grains. Over the past two decades (2005-2024), the number of government veterinary hospitals (GVHs) and dispensaries (GVDs) in Haryana grown at CAGR of 1.73 and 1.82 per cent, respectively. This reflected the state's priority for keeping sound health of livestock to support farming community for encouraging rearing of animals as supplementary activity in addition to crops cultivation. Improved veterinary services have enhanced animal health, dairy productivity, and supplementary rural income (Sharon, 2023) [34] .

Conclusion and policy implications

The results offers a comprehensive analysis of Haryana's agrarian transformation over the five-decade period (1970-2023) reflecting significant structural, technological and institutional changes in state's agricultural economy. GSDP showed an exponential rise, increasing from ₹1.00 thousand crores in 1970-71 to ₹958.39 thousand crores in 2023-24 at current prices, indicating robust economic growth. Per capita income at current prices also showed substantial improvement, reflecting higher economic well-being, rising from ₹₹2,370 in 1980-81 to ₹3.19 lakh in 2023-24. Moreover, socio-economic indicators improved significantly. Literacy rate in Haryana rose substantially in rural area from 15.25 lakh (56.50%) literates in 1971 to over 101.58 lakh literates (61.20%) in 2011. Workforce composition also shifted dramatically, with the tertiary sector surpassing the primary sector in employment share. Area under cultivation slightly inclined, but total cropped area and irrigation www.extensionjournal.com coverage increased, indicating a shift towards intensive crop cultivation. The cropping pattern showed diversification with expansion in area under wheat, rice, oilseeds and horticulture crops, and sharp decline in pulses. Adoption of mechanization of farm operations and improved production and protection technologies was evident from the sharp increase in tractors, irrigation devices, fertilizers and plant protection chemicals consumption. The number of regulated markets, connectivity with metalled roads and expanded storage capacity, along with considerable growth in milk production, indicating improved agri-infrastructure and allied sectors performance. Despite declining forest cover and rising input dependence, state's agriculture moved towards commercialization and integration with markets. The findings suggest a pressing need for climate-resilient strategies, balanced input use, investment in high-value crops and policy support for smallholders and farm mechanization to ensure sustainable and inclusive growth in the coming decades.

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