Capital formation in fisheries sector in India: trends, compositional changes and potential implications for sustainable development

Abstract

This paper analyses the trends in capital formation in fisheries sub-sector and the responsiveness of fisheries sector to capital formation during the period of 1990-91 to 2014-15. We find structural breaks in capital formation, coinciding with policy changes. There has been a deceleration in capital formation immediate post-liberalisation. The share of fisheries sub-sector in agricultural gross domestic product (GDP) has gradually increased, from 4.3 % in 1994-95 to 5.4% in 2014-15. Correspondingly, the share of fisheries sub-sector in gross fixed capital formation (GFCF) in agricultural sector has increased from 3.4% to 9.7%. However, the efficiency of investment in the fisheries sub-sector has declined; the incremental capital output ratio (ICOR) has increased from 3.2 to 8.3 during this period. The fast decline of the efficiency of capital can be attributed to over-capitalisation of some segments of this sub-sector, particularly marine fisheries characterised by a large number of mechanised fishing vessels. The public capital formation in fisheries as a share of the total pubic capital formation is very low. Inland fisheries also face sustainability issues in terms of environmental degradation. Improving the capital productivity warrants implementation of norms of sustainable fisheries. This requires prioritization of segments for capital infusion and prioritization of geographical locations.

Strategy For Capture Fisheries based Minapolitan Area Development in Pasongsongan, Sumenep District

“…Market integration and implementation of information technology can increase distribution efficiency and reduce price uncertainty [17]. Capital is the key to encouraging economic growth in fisheries [18]. Financial institutions such as cooperatives, banks, and the SeHAT Fishermen program provide access to capital to increase production capacity and business development.…”

Investment Contribution as a Driver of the Fisheries Subsector in Eastern Indonesia

“…Unplanned investments have e-ISSN: 2723-6692 🕮 p-ISSN: 2723-6595 a negative impact on the productivity of fishing units, thereby affecting the socio-economic situation of small-scale fishermen (Kemaritiman, 2017). Investment in physical capital, human capital and labor is an important factor for economic growth performance (Suresh & Shinoj, 2018). The government must improve the business environment, so that it can provide a stable investment flow and sustainable economic growth in the long term (Salah Eddine & Saïd Chaouki, n.d.).…”

R-Software for the Assessment of Structural Changes in Fisheries Production of Andhra Pradesh and Tamil Nadu for Indian GDP

“…In the last 25 years, the contribution of the fisheries sector to the Gross Domestic Product (GDP) is continued to grow at a rapid rate unlike agriculture because of the expansion of the culture fisheries enterprise (Ganesh et al, 2010).The share of the fisheries sub-sector in the agricultural gross domestic product (AGDP) has gradually increased during the last few decades. An increase in GDP in recent years has occurred due to the transformation of the sector from traditional activity into a significant commercial enterprise through coastal aqua farming which promotes the growth and development in the fisheries sector (Sathiadhas et al, 2014;Suresh et al, 2018).…”