AMRUTHA T. JOSHISHRUTHI K.2020-07-152020-07-152018-07-30250http://krishikosh.egranth.ac.in/handle/1/5810149191Capital is the pre-requisite for any progressive activity and economic development of the country or state. It is necessary to look into a policy for capital formation in relation to process of agricultural transformation. An attempt has been made through the present research to study the state level capital formation in agriculture and allied activities and irrigation systems; private capital expenditure by farm households; impact of capital investment on agricultural transformation and influence of government developmental programmes on capital formation in agriculture. The study was undertaken with the aid of both micro and macro level data in North Eastern Karnataka (NEK) region covering three agro climatic zones. Two taluks were selected in each zone where each taluk has 30 samples. A total sample size for the study was 180. The study revealed that the total public and private capital expenditure on various heads of agriculture and allied activities in Karnataka has been increasing over the period of study. Pattern of investment across the different categories of farms and zones revealed that majority of investment share was on farm machineries and irrigation structures & accessories in irrigated areas and on livestock and construction of farm buildings in rainfed areas. Cropping intensity, income of farmers, size of landholdings and education were observed to be the major factors which influenced the capital formation in agriculture. The Markov analysis of changes in cropping pattern revealed that the area under cereals & minor millets and pulses had shifted towards commercial crops and fruits & vegetables from period I (1996-97 to 2005-06) to period II (2006-07 to .2015-16). Government schemes and development programmes had indirectly influenced the capital formation in agriculture through the funds released for each scheme during the recent time period. It was concluded that there is a positive link between capital formation in agriculture and agricultural transformation. Capital investment at macro level had promoted the farmers investment across different farm capital assets.ennullThesis