Poverty and Sustainability Implications of Groundwater Based Irrigation: Insights from Indian Experience

Abstract

Groundwater has become the main source of irrigation occupying more than 60% of total irrigated area in India. While the fast development of groundwater based irrigation has helped to improve the livelihood security of rural population and reduce the poverty; it was at the cost of high level of energy intensification and negative externalities. In this backdrop, this paper estimates empirically the implication of groundwater based irrigation in India on rural poverty and groundwater sustainability. The results establish that a higher share of groundwater based irrigation in total irrigation strengthen the poverty reduction effects of irrigation. However, escaping poverty through unrestricted access to groundwater is not sustainable. Since the property rights on land accords unrestricted access to groundwater, location specific regulations need to be devised for sustainable management of groundwater. Along with this, incentivising rainfed agriculture through price policies and market opportunities; and promotion of watershed based agricultural planning are critical for sustainable agricultural development.