The agricultural sector is expected to perform better after stagnant growth of 1.4 percent in Fy24 as estimated in the provisional estimates. This is likely despite the monsoon not performing as predicted by the (India Meteorological Department), the chief economic advisor V Anantha Nageswaran said on July 22.
''Agriculture sector is expected to perform better in the coming year. Monsoon not performing as predicted by the IMD before the season began,'' Nageswaran said at the press conference after the Economic Survey was tabled in the Parliament by Finance Minister Nirmala Sitharaman.
The Indian Meteorological Department had forecast that India is set to receive above-normal monsoon rains this year. The monsoon is, however, not progressing as the IMD predicted before the monsoon season began. The rainfall needs to be spatially distributed, else the agricultural yield is impacted, the CEA said.
The farm sector has clocked an average annual growth rate of 4.18 per cent over the last five years, with provisional estimates for 2023-24 pegging the agri growth rate at 1.4 per cent.
ALSO READ: For more details go to Economic Survey blog
The Survey outlines six key areas for growth in the Amrit Kaal. The government aims to unlock the potential of agriculture as a major growth driver by removing existing policy impediments.
Going forward, the Digital Agriculture Mission 2021–2025 intends to modernise farming via the use of AI, remote sensing and drones, the Economic Survey projects. A special effort for agri infrastructure is being pushed out to enhance food grain storage facilities, the Survey said, highlighting Rs 4,570 crore allocated as subsidy for storage infrastructure, and Rs 2,084 crore set to be further released as subsidy under Agriculture Marketing Infrastructure (AMI) scheme.
"Agriculture policies must be consistent with climate imperatives and water security", the Survey goes on to add. "Investment in technology, production methods, marketing infrastructure, and reduction in post-harvest losses need to be scaled up."
The Economic Survey said government's policies aim to improve the agri market infrastructure through E-NAM, FPOs, and allowing cooperatives in agri-marketing.
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