Failed Expectations: Agrarian Capitalism, Political Rent-Seeking, and the Crisis of Governance in Punjab

Abstract

Punjab, once celebrated as India’s most prosperous state, now finds itself mired in political disarray, marked by declining farmer incomes, rising farmer suicides, sluggish economic growth, and widespread political corruption and criminality. This paper examines the roots of this ongoing crisis, situating it within the broader socio-economic transformations brought about by the Green Revolution and its aftershocks. It contends that state policies designed to foster agricultural growth during the mid-20th century catalysed the rise of a new class of affluent capitalist farmers. This group, ambitious and politically active, formed alliances with urban trading elites, reshaping the dynamics of power and privilege in Punjab.  Additionally, members of this class have sought rents through political office, often blurring the boundaries between legitimate and illicit forms of accumulation. Such dynamics, it argues, have entrenched corruption, eroded public trust, and contributed to the delegitimisation of traditional political parties. By analysing the interplay of agrarian capitalism, political rent-seeking, and social aspirations, this study seeks to illuminate the structural underpinnings of Punjab’s contemporary political and economic challenges.