The current paper aims to assess the relative competitiveness of agricultural green development across 27 Indian states and explore the factors influencing this development. Given India's significant role as a global producer of various crops such as rice, wheat, sugarcane, cotton, and pulses, and with approximately 43.96 percent of the labor force engaged in agriculture, the sector's performance is crucial for achieving Sustainable Development Goals (SDGs).
The analysis of the green development index reveals that states like Uttar Pradesh demonstrate higher green competitiveness, attributed to factors such as irrigation infrastructure and a higher proportion of insured farmland. Conversely, states like Himachal Pradesh, Uttarakhand, and Punjab exhibit lower levels of green competitiveness due to their elevated consumption of fertilizers and pesticides.
To understand the determinants of agricultural green development competitiveness, Quantile regression has been employed. The findings highlight a positive relationship between agricultural green development (the endogenous variable) and several explanatory factors. These include the extent of land insured, per capita power availability, the presence of bank branches in rural areas, and an increase in crop intensity.
Furthermore, employing the Dumitrescu and Hurlin (2012) panel Granger causality test reveals that economic growth at the state level in India precedes and influences agricultural green development. This suggests a dynamic relationship wherein economic progress fosters advancements in agricultural sustainability.