NEW DELHI: The Economic Survey 2024, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha, highlights the agriculture sector as a burgeoning growth engine for both India and the global economy. As global manufacturing and services face constraints from resource hoarding, trade protectionism, and technological disruption, agriculture stands out as a promising area for expansion.
Agriculture remains a cornerstone of the Indian economy, demonstrating steady growth with an average annual rate of 4.18% at constant prices over the past five years. However, provisional estimates for 2023-24 show a slower growth rate of 1.4% at constant prices, highlighting both progress and areas needing improvement.
The allied sectors of Indian agriculture, including livestock and fisheries, have shown remarkable expansion. From 2014-15 to 2022-23, the livestock sector grew at a Compound Annual Growth Rate (CAGR) of 7.38% at constant prices.
Here’s what the Economic Survey 2023-24 highlights about Agriculture sector:
1. Initiatives like Per Drop More Crop and NMSA promote efficient and sustainable farming.
2. 90 lakh hectares covered under PDMC from 2015-16 to 2023-24.
3. Digital Agriculture Mission and e-NAM… pic.twitter.com/WvatYFcTzO— The New Indian (@TheNewIndian_in) July 22, 2024
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The fisheries sector fared even better, with an 8.9% CAGR over the same period. These sectors are becoming significant growth centres and sources for improving farm incomes.
Government initiatives have focused on enhancing credit availability to reduce dependence on non-institutional sources. The share of non-institutional credit has decreased from 90% in 1950 to 23.40% in 2021-22. This shift aims to boost investment and reduce financial strain on farmers.
The adoption of sustainable practices is a priority. Initiatives such as the Per Drop More Crop (PDMC) micro irrigation scheme and the National Mission on Sustainable Agriculture (NMSA) focus on efficient input use and organic farming. As of February 6, 2024, PDMC has covered 90 lakh hectares under microirrigation.
Digital initiatives like the Digital Agriculture Mission and e-National Agriculture Market (e-NAM) are transforming agriculture. The Digital Agriculture Mission (2021–2025) leverages AI, remote sensing, and drones to modernize agriculture. e-NAM facilitates better price discovery and market access.
Here’s what the Economic Survey 2023-24 highlights about Agriculture sector:
1. 1.4% growth rate in 2023-24 in Agriculture sector.
2. Livestock sector grew at 7.38% CAGR; fisheries at 8.9% CAGR.
3. Non-institutional credit reduced from 90% in 1950 to 23.40% in 2021-22.… pic.twitter.com/BGVPyENZJS— The New Indian (@TheNewIndian_in) July 22, 2024
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The government supports cooperatives and FPOs to enhance market access and bargaining power for small and marginal farmers. As of February 29, 2024, 8,195 FPOs have been registered under the new scheme, helping to aggregate produce and prevent exploitation by intermediaries.
To address infrastructure needs, the Agriculture Infrastructure Fund (AIF) and the Agriculture Marketing Infrastructure (AMI) have been launched. As of July 5, 2024, AIF has mobilized ₹73,194 Crore in investments. AMI has sanctioned 48,357 storage infrastructure projects with ₹4,570 Crore in subsidies, while 20,878 other projects are underway with ₹2,084 Crore in subsidies.
The government has introduced several schemes to boost food processing, including the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI), and the Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.
Additionally, the government will continue providing free food grains to approximately 81.35 crore beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for the next five years to alleviate financial burdens.