Can Analytic Narrative Inform Policy Change? The Political Economy of the Indian Electricity–Irrigation Nexus

Agricultural electricity subsidisation has led to high electricity demand, groundwater depletion and public financial burdens. The policy persists, although paralleled by fundamental changes in electricity governance. How can lock-in and policy trajectories be explained? Theories of institutional public choice and regulation are reviewed. Two game models are built to analyse narratives based on interviews and secondary historical data. The findings reveal path dependencies inherent in the existing action situations. Resolving the current equilibrium requires changes outside the political or regulatory process, such as the electricity distribution level, where coordination failure impedes infrastructure improvements, contributing to resistance among the agricultural electorate.