Impact of Digitalization on Agricultural Market Performance in India: A Time Series Analysis

Abstract

This study analyses the effect of digitization on the performance of India's agriculture sector. The study uses time series data from 2005 to 2024. The measures of agricultural performance are: Agricultural GDP Price Index and Agricultural Exports. The proxy for digitalization includes UPI transactions and Internet penetration. Descriptive Statistics, Trend Analysis, Correlation Analysis, and Multiple Regression are used to examine the relationship between digital transformation and agricultural performance. Results reveal the essential function of digital infrastructure in improving market access and productivity, as it shows a robust and statistically significant positive effect of internet penetration on Agricultural GDP and Exports. UPI Transactions are highly negatively correlated with the Price Index, showing better market efficiency and price stabilization, and have a positive but relatively lower impact on agricultural growth. The results show that digitalization enhances agricultural performance primarily through improved connectivity and information sharing. This study addresses the existing gap in empirical evidence on the impact of digitalization on India's agricultural market performance by employing a time-series approach to examine the relationship between digital indicators and key agricultural outcomes, including agricultural GDP, price stability, and export performance. The findings contribute to the literature on digital transformation and agricultural economics while offering evidence-based insights for policymakers to strengthen inclusive and efficient agricultural market systems. The study emphasizes the necessity of digital infrastructure development and promotion of digital usage for the equitable and effective functioning of agricultural markets in India.

Keywords: Digitalization, UPI, Internet Users, Agricultural GDP, Price Index, Agricultural Exports, Market Efficiency.