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The paper has examined the changes in inter-sectoral relations as driven by the sectoral shares and sectoral growth patterns, and has traced the nature of linkages between agriculture and the rest of the economy in the changing context. The relation between use of technological inputs in agriculture and employment encompasses the socioeconomic and technical links between inputs and outputs. In this context, the paper has examined, by means of a case study, the role of biochemical technology in raising crop productivity and net incomes of farmers. Increasing output and profitability in the agriculture sector are the necessary precursors for strengthening the linkages between agriculture and the rest of the economy. The adoption of herbicide-tolerant (HT) technology has been found to reduce the cost of production through lower expenditure on herbicides, labour, machinery and fuel, despite charging of technology fees on the seeds. In this context, the paper has assessed the potential impact on agricultural productivity and net profits through the introduction of technology, viz. herbicide-tolerant (HT) cotton in sample farms across Gujarat. The findings based on secondary analysis and evidence based on a case study have categorically indicated the need for greater farm mechanization coupled with introduction of technologies that are labour saving if agricultural productivity has to be maintained and stepped up. Such an outcome would no doubt enhance agriculture-industry linkages in the production process and would also have favourable income effects giving a further boost to agriculture and industry.

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Adoption of labour-saving agricultural technologies is often determined by peak-season labour scarcity and uncertainty in labour supply, besides the need to reduce overall cost of production. Adoption of labour-saving technological innovations could also be justified on efficiency grounds. Technology-led agricultural growth is believed to ensure economic gains to cultivators, increase in real wages and creation of employment opportunities. This paper estimates changes in mean technical efficiency in herbicidetolerant cotton, vis-à-vis conventional Bt cotton crops. Analysis indicates that use of herbicide-tolerant technology is technically more efficient, as it reduces wastage of purchased farm inputs due to absence of crop-weed competition, in addition to ease of cultivation related operations termed in literature as nonpecuniary benefits.

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