Synopsis
India's economic growth aims for significant agriculture sector reforms focusing on productivity, technology adoption, and infrastructure. Priorities include Agri-allied sectors, export enhancement, land consolidation, irrigation expansion, and rural workforce skill development to boost rural income and support overall economic growth.
A large part of India’s population is dependent on the agriculture sector. As the Government looks at moving towards its aspirations of a Viksit Bharat by 2047, one of the critical steps would be reforms in the agriculture sector. The upcoming Union Budget should continue the focus on increasing productivity and creating apt infrastructure for ensuring steady growth in the agriculture sector and increasing rural income.
Budget 2025: Paving the way for agri reforms and rural growth
As per the latest HCE (Household Consumption Expenditure) survey by NSSO, average rural MPCE (Monthly per capita consumption expenditure) is 58% of urban MPCE, highlighting the need for narrowing the gap in rural-urban income. In the last few years, there have been reforms aimed at increasing rural income, but the progress has been gradual. In the last five years, on average the government has allocated 3% of total budgeted ex ..
Budget must focus on bridging rural-urban income gap
Agriculture employs 45% of India’s workforce but contributes only 18% to India’s GVA. This highlights the need for increasing productivity in the sector. As per an IMF paper, India’s labour productivity (PPP adjusted) in agriculture is only 12.2% of the median productivity in advanced economies and 43% of the median productivity in emerging markets. The yield of most crops in India is well below the global average. The upcoming bud ..
Budget 2025: Boosting agri productivity with tech & innovation
There is a need to provide further push to agrI-allied sectors like livestock's, horticulture, fishery as this will help increase labour productivity and rural income. Already we are seeing the share of these sub-sectors in total agriculture production increasing and so is the share of labour force employed in these sub-sectors. The share of livestock in agriculture GVA has increased from 22% in 2011-12 to 30% in 2022- ..
