A view on commercialisation in Indian agriculture and the development of capitalism

This is an attempt to investigate the reasons for the muted formation and development of capitalist relations in Indian agriculture, even while commercialisation in output markets has advanced considerably. Analysing the qualitatively differing character of exchange involvement, resting on the class basis of a differentiated peasantry, we have noted the differential dynamics that commercialisation entails for different classes and its overall, macroeconomic consequences. We argue that the desperate dependence on land as the basis for survival, with no alternative permanent means of livelihood, perpetuates the perverse exchange relations and retards productive accumulation. Most employment‐generating schemes sponsored by the state turn out to be ameliorative, providing only an intermittent supplementary source of income. This, along with the weak pull of a tardy industrial growth, only stabilises the petty‐holders. It is the preponderance or otherwise of petty‐holders, who are in no position to undertake productive accumulation themselves but could provide the ground for diversion of surplus into unproductive uses, that shapes the accumulation process.