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The importance of agriculture in economic development in any country is borne out by the fact that it is a primary sector of the economy and it provides wage-goods, which are necessary for rI ankind. It also provides raw materials for industries. It is true that when a country passes from the stage of developing to developed, the dependency on agriculture decreases as the employment opportunities are generated in the non-agricultural sectors also. This decreases the burden on agricultural land. In India, about 58 percent of the population depends on agriculture for livelihoods and agro-products fulfill the major food requirements. The agricultural growth is determined by agricultural production. This depends on agricultural farming system. The system of farming is a combination of different factors such as farming environment, level of technology, availability of inputs and agricultural marketing. Farming environment determines nature of farming, cropping pattern and investment behaviour of farmers. Productivity of land, volume of employment, volume of investment and farm income are determined by adopted techniques of production. Agricultural marketing determines the income of farmers which depends upon the organizational and operational efficiency of market structure. In other words, agriculture affects the sentiments of the entire economy. A year of good agricultural production keeps down the inflation, boosts industry, raises agricultural income and generates employment.
The economic growth has brought spectacular change in the pattern of land utilization in India. The increase in demand on the one hand and diversion of land for non-agricultural uses on the other has resulted into horizontal and vertical expansion of agricultural land. The use of new technologies such as mechanization, HYV seeds, chemical fertilizers, pesticides, etc., along with government policy has changed the pattern of agricultural production. The excessive use of chemicals along with subsidies on the one hand supports the agricultural output but on the other hand its excessive use results into depletion of soil and water The present study is an attempt to determine the relationship between capital formation and agricultural sustainability taking the case of Jhansi division. With the help of primary data, the study attempts to find the pattern of capital formation at different farm levels. In order to determine the sustainability of agriculture, the farmers' knowledge for the use of various inputs is checked. With the help of econometric models, it finds the variables that could be taken into consideration for establishing the relationship between capital formation and sustainability of agriculture.
The objectives of the study are: (1) to compute the growth rates and instability index of capital formation and area, production and productivity of agricultural products; (2) to examine the level and composition of economic growth and gross domestic capital formation; (3) to examine the inter — relationship between capital formation and sustainability of agriculture; and (4) to examine the efficiency of capital use in agriculture and capital — output ratio on the small, medium and large farms. The study is based on secondary and primary information. The secondary information ieriod of last 13 years, that is, from 1994-95 to 2006-07. The secondary s collected for the p •data are collected from various published and unpublished sources at all India, Uttar Pradesh (2) RBIDBivalryletiant, and Jharisi division with districts level. Some of them are: (1) Different Volumes of District :(4:vv-wwww.inidnidajbaustdagtecto.nimc.i:(5) Economic Survey.

Indian Council of Social Science Research.

English