The Economic Survey has revealed that agriculture, industry and the services sectors contributed 17.7%, 27.6% and 54.7% respectively to the overall Gross Value Added in FY24. While the relatively small share of agriculture does not diminish the significance of this sector in any way, it could find great attention from the economic policymakers.
Many have pointed out that the focus will be on farmers in the third term of Prime Minister Narendra Modi. It will also have a great economic collateral benefit – boost demand in the rural sector that will trigger more overall economic growth.
Digital agriculture mission
Among the areas that could find emphasis is a Digital Agriculture Mission. The government might focus the power of new technologies such as artificial intelligence, blockchain and robotics.
Kisan credit card limit
To increase access to credit, the finance minister might announce a rise in the loan limit on Kisan Credit Card (KCC). This amount might go up from Rs 3 lakh to Rs 5 lakh. The KCC carries a rate of interest of only 4%.
Loan without collateral
Small farmers often face situations where it becomes necessary to obtain a loan without placing any collateral. The limit of obtaining a loan without any security could possibly be hiked from Rs 1.6 lakh to Rs 2.6 lakh.
Funding for National Oil Seed Mission
India is deficient in the production of cooking oils and has to import large quantities every year. This also adds to inflationary pressures since the prices remain volatile in the global markets.
The Centre launched the National Mission for Edible Oils in August 2021. The mission is committed to elevating crude palm oil production to 11.20 lakh tonnes by 2025-26. This could get a boost
Modernisation of agri markets
The efficient functioning of the wholesale agriculture markets in different regions of different states is a significant step in the modernisation of the agri-industry in the country. The government can announce measures in this direction.
Crop diversification
Government could also promote diversification of crops which is another important tool for both improving the variety of crops as well as improving farmer’s security.
Announcement of complete procurement of Toor, Urad and Masoor dal possible. There is also a shortage of pulses in the country and the government has promoted imports of dal from new countries such as Brazil.
Additional budget can be given for PM-AASHA scheme.
The primacy of agriculture never goes down in India, both politically and economically. The agriculture sector could grow at 3.7% in FY25 – a big leap from the 1.4% in FY24, CII has predicted. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
