Publication: Watering the Seeds of the Rural Economy: Evidence from Groundwater Irrigation in India
Loading...
Published
2025-08-06
ISSN
0258-6770 (print)
1564-698X (online)
1564-698X (online)
Date
2025-08-06
Author(s)
Editor(s)
Abstract
This study explores the impact of private investment in groundwater extraction for irrigation on the spatial and sectoral distribution of rural economic activity in India. Exploiting a kink in access to groundwater, generated from an absolute technological constraint on the operational capacity of irrigation pumps with depth of the water table, there is evidence of a significant improvement in agricultural production accompanied with modest consumption gains. Groundwater extraction causes a substantial increase in population density, but has no effect on the employment rate or labor reallocation between sectors of the economy. Furthermore, irrigated agriculture appears to provide additional employment opportunities for waged labor from surrounding non- irrigated villages.
Link to Data Set
Citation
“Boudot-Reddy, Camille; Butler, André. 2025. Watering the Seeds of the Rural Economy: Evidence from Groundwater Irrigation in India. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/43550 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
World Bank Economic Review
1564-698X
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
No results found.
Users also downloaded
Showing related downloaded files
Publication Parity for Women in the Maghreb(Washington, DC: World Bank, 2025-08-01)This report examines the progress of women in the Maghreb region (Algeria, Libya, Morocco, and Tunisia) and the gaps remaining in human capital, economic participation, and political agency. Despite girls in the Maghreb outperforming boys in education and health, this progress has not yet translated into equal economic participation. Female labor force participation remains strikingly low at 17 percent in Algeria, 20 percent in Morocco, 27 percent in Tunisia and 35 percent in Libya. Women in the Maghreb face occupational segregation and are overrepresented in low-paying service sector jobs and informal employment. Restrictive and persistent patriarchal norms and legal barriers limit women’s access to credit and assets. In the political sphere, while there have been advancements through quota systems, women remain underrepresented in leadership roles, and gender-based violence – along with the belief that it is justified – continues to be common. Tunisia serves as an encouraging example with higher female business ownership and women’s representation in government.Publication Understanding Health Workers Motivational Preferences and Accountability Modalities in South Sudan(Washington, DC: World Bank, 2025-08-01)This study seeks to fill this gap by exploring the motivational preferences and accountability mechanisms that influence health worker performance and retention in rural South Sudan. It aims to identify practical, context-appropriate approaches to strengthen health service delivery in underserved areas. The findings aim to inform HRH reforms led by the Ministry of Health and development partners. Specifically, the research aims to (i) assess health worker preferences for rural postings; (ii) explore context-appropriate and effective ways to promote accountability mechanisms within South Sudan’s resource-constrained environment; (iii) identify which incentives would encourage health workers to remain and perform in rural areas. The report provides evidence-based recommendations to guide the design of effective incentive structures and accountability models that support a more sustainable, motivated, and equitably distributed health workforce in pursuit of UHC.Publication Port Reform Toolkit(Washington, DC: World Bank, 2025-07-31)Ports are undergoing constant transformation, induced by changes in the global economy, technology, or the environment. Port reform is influenced by factors that include aspirations for change underpinned by complex internal and external drivers. In a sector where public and private interests must work together, closely managing change is important. Having the right tools is key for a successful port reform and improvement process which enables economic growth, creates jobs, and fosters sustainable development. For over two decades, the Port Reform Toolkit has been one of the most comprehensive guides for implementing port reforms. Along the way, the Toolkit has evolved in response to changing sectoral trends. The first edition, published in 2001, established a common language for policymakers and port industry stakeholders. It has since become the established reference for port privatization, labor, and modernization programs. Further experiences from a first wave of port reforms in Latin America, Africa, and Asia in the 1990s and early 2000s informed the second edition of the Toolkit, which was released in 2007. By that time, ports in developing economies had attracted over 21 billion dollars in investments from over 200 public-private partnership projects. In this context, the Port Reform Toolkit enabled port stakeholders to provide strategic advice to governments and the private sector.Publication Mapping Impact In Chad(Washington, DC: World Bank, 2025-06-25)In the Sahel, Adaptive Social Protection (ASP) is a set of social protection policies, systems, and programs that promote human capital, productivity, and resilience of the poorest and strengthen their capacity to prepare for, cope with, and adapt to shocks. Through the delivery of regular social safety nets, productive inclusion interventions, and shock-responsive programs, ASP has demonstrated strong positive impacts on various dimensions in the Sahel. For the poorest and most vulnerable, it has resulted in improvements in household welfare and food security, productivity, and resilience. More broadly, it has shown significant positive impacts on the economy, society, and future generations.Publication Algeria Economic Update, Spring 2025(Washington, DC: World Bank, 2025-06-20)Algeria’s economic growth remained robust in 2024 but is expected to slow moderately in 2025. Strong investment momentum and robust growth in household consumption, both fueled by government spending, supported manufacturing and services activity, while agricultural production accelerated. However, growth in domestic demand boosted imports, which, combined with lower hydrocarbon production and exports, weighed on growth. Overall, non-hydrocarbon GDP grew at a pace of 4.8 percent, offsetting the 1.4 percent contraction in GDP from hydrocarbons. Real GDP growth is projected at 3.3 percent in 2025, driven by the rebound in growth in the hydrocarbon sectors (+1.6 percent), boosted by the recovery of OPEC production quotas and gas production. Non-hydrocarbon growth is expected to slow (+3.6 percent), driven by the expected consolidation of public spending, which would be more marked for investment. Agricultural production is expected to remain robust despite limited rainfall, offsetting the slowdown in industry and services. The analysis of productivity trends in different sectors offers avenues for reflection to accelerate the structural transformation of the Algerian economy. The public-spending-led growth model resulted in important economic and social achievements in the 2000s, before slowing down in the last decade as the pace of spending growth became unsustainable. In doing so, this growth model has steered employment to low-value-added sectors, including non-commercial services and construction. In addition, a comparative analysis of Algerian productivity suggests a heterogeneous performance, with strong momentum in the agricultural sector contrasting with limited gains in the manufacturing sector. Thus, a growth acceleration could be achieved by increasing productivity gains in the manufacturing and services sectors, on the one hand, and a gradual reallocation of employment to high-value-added sectors on the other, combined with a gradual rebalancing of public spending. Such an economic transformation calls for targeted cross-cutting and sectoral policies to support growth and jobs in the private sector, while equipping workers with the necessary skills.