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The Way To Become $5tn New India Is Through Rural Bharat

Author: Rajiv Singh/Thursday, July 18, 2019/Categories: Union Budget News 2019, Economy

The Way To Become $5tn New India  Is Through Rural Bharat

It is often believed that the fate of the Prime Minister is decided by the mood in rural Bharat.  The Narendra Modi-led NDA rode to power by creating a hope of doubling farmers' income by 2022 and provide 1.5 times profitability for the crop yields. Towards the end of the first term, the government focused more on short-term measures to alleviate rural distress. The government faced the heat of farmers' agitations in various states due to lower prices for their yield. Surplus agricultural produce during the first tenure and the government's measures on the inflation front contained the agri-commodity prices.  

But, the Union Budget presented by the country's first full-time woman finance minister Nirmala Sitharaman has disappointed the farm sector. Despite the stress on 'Grameen Bharat' in the Union Budget speech with the slogan of 'Gaon, Garib aur Kisan’, the Budget was disappointing with no major policy breakthrough.  The government missed the opportunity to come out with bold steps to alleviate the farm sector.  Although agriculture is a state subject and structural reforms need to be made at the state level, some serious support from the central government can push the states by providing financial assistance or at least laying proper roadmap for the same.

In the Union Budget, the Centre leaned towards promoting Zero Budget farming using eco-friendly fertilizers and pesticides. Since it is at an experimental stage with acceptance at lower levels, it may take time to practically witness its outcome.

If we go by the current monsoon developments, the Southwest Monsoon which accounts for three fourth of India’s annual rainfall was disappointing. According to IMD data, there's already a 21% rainfall deficit that led to a decline in Kharif crops. Though the government has initiated some measures to assist the drought-prone areas with financial assistance through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Soil Health Card scheme and Pradhan Mantri Fasal Bima Yojana (PMFBY), the crisis still seems to be unresolved. In the Union Budget, the government announced to fix the minimum support prices above 50% of the farm production cost. These measures are good only on paper unless implemented effectively.

Some major schemes were announced by the Centre for the welfare of the farmers, including direct income support of Rs 6,000 annually. Along with this, some state-level programmes will help.  But the major challenge will be improving farm output prices which will be possible only if we focus on creating online platforms for farm trade with transparent pricing followed by a quicker movement of the goods.

The yield of crops (the amount produced per unit of farmland) is lower than the world average. If we talk about the overall workforce, as per NITI Aayog, close to 49% of them rely on agriculture which constitutes around 15% of the GDP. Lack of proper mechanism to supply quality seeds, knowledge deficiency in the adoption of better technologies and lack of water resource management practices are major challenges to the farming sector.

If we have to grow at 7-8% per annum in terms of the GDP, there is an urgent need to shift our workforce from agriculture to manufacturing and services. World economies are investing heavily in the manufacturing and automation sectors. India should also shift its gear. To become a $5tn economy, the government should press the reforms button, accelerate investments in the farm sector and focus on 'Grameen Bharat' as it lays the foundation for much-needed growth by contributing a major portion to the GDP and employment.   (The author is CEO Stock Broking, Karvy)

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Rajiv Singh

Rajiv Singh

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58 comments on article "The Way To Become $5tn New India Is Through Rural Bharat"

supriya sahoo

7/19/2019 7:55 PM

India government has introduced number of schemes for farmers, but it needs to implement effectively.


Pooja Singh

7/19/2019 7:57 PM

India is still agriculture centric economy, the workforce involved in agriculture related activity is enormous insize so unless and until govt. gives special focus in this the 5 trillion dream looks tough to achieve.


madhu

7/19/2019 7:57 PM

The Indian Govt should have to accept the new challenges from current agriculture equipment to new technology driven equipment to achieve desired $5tn economy.


Naresh

7/19/2019 7:59 PM

Some major schemes were announced by the Centre for the welfare of the farmers, including direct income support of Rs 6,000 annually

The Way To Become $5tn New India

Good support from central govt.


Rajesh Jha

7/19/2019 8:03 PM

To become of 5 trillion of economy India should grow every year 8 % GDP growth . This is only achievable to shift our workforce from agriculture to manufacturing and services


Rishabh Chitransh

7/19/2019 8:06 PM

All the policy which are make by the government are on papers but we need to get them transferred on the papers for the use and into the digital form so that one can make use off them in their life i.e farmers as the budget itself stating that its for farmers with the name 'Gaon, Garib aur Kisan’.


Akarshan Bajpai

7/19/2019 8:08 PM

Developments are required on both the fronts that is governmental policies and the and most important is it's execution.

India is going digital why can't we make it possible for the farmer sector?


kather basha

7/19/2019 8:21 PM

Agriculture is a back bone of India economy none of the country had become super power by avoiding agriculture .the government announced to fix the minimum support prices its leads the dispute against the agreements which had signed in These measures are good only on paper unless implemented effectively.


Mathew

7/19/2019 8:26 PM

Finance Minister should be more aggressive and focus on the areas wherein our economy can grow faster like Manufacturing and services.


rameshtvrr

7/20/2019 10:42 AM

Agriculture sector is back bone to our Indian Economy if we provide more benefits to formers definitely our Indian economy will reach to $ 5 trillion economy with in the 5 years.


Kalpesh

7/20/2019 11:10 AM

Major hurdle to improve farmer income is still skills of Indian farmer and they need to upgrade their skill with latest technology and implement technology on ground level for that government need to create awareness among farmer & need major reform in agriculture sector.


Vishakha Gupta

7/20/2019 12:44 PM

As we know that our developing county's primary work is agriculture so promoting zero budget farming and others schemes like soil health card,pradhan mantri fasal bima yojana that will help to increase productivity and improve economy growth.


Basanta Pradhan

7/20/2019 2:05 PM

The back bone of Indian economy is agriculture. The govt has introduced many schemes for development but it was not implemented up to the mark.


pavan

7/20/2019 2:23 PM

agriculture is backbone of our economy should plan and execute some alternative plans as soon as possible to overcome water problems which is being faced by major part of the country for irrigation as well as domestic usage


Surampudi Sai anusha

7/20/2019 2:28 PM

the implentation of PMKSY and PMFBY was helpful to farmers for various agricultural activities.


Rohit JAIN

7/20/2019 2:35 PM

In the second tenure of the MODI govt. they can do lot more for agriculture sector, as our countries major workforce goes in agriculture sector but for that proper investments are not been provided as india need improvement in drought prone areas, hi-tech machinery, agri loans and resource management is required to grow this sector as other growing nations are not facing any problem in agri sector.


dheeraj mishra

7/20/2019 2:37 PM

as per the data our economy is accelerating, continiously growth in GDP, and a steady increase in job growth. Yet despite these positive economic trends, why wages of employee are not keeping up in india.


m v c s avinash

7/20/2019 2:44 PM

Focusing on Agri product development and agri exports will result in gdp growth.Anyway Agriculture is backbone of India.So Implementing new budgeting and production methods to improve farming will result in Progression.


Hemant Saini

7/20/2019 2:44 PM

I think Goverment of India need to give guarantee to farmers for minimum price for his vegetables and crops and also increase the storage capacity of cold storage and storage houses for crops


Hemant Gawali

7/20/2019 2:45 PM

India needs to increase its competitiveness to become 5 trn economy


Amrutha Srividya

7/20/2019 2:50 PM

India needs to focus on farmer's requirements as agriculture is the primary sector in the economy. Steps to be taken on preserving water resources as the crisis has already started.


Manish Singh

7/20/2019 2:55 PM

Government has rightly taken the step for the farmers and the development of the rural India, also allocate the $5.05 Trillion in next 5 year for rural infrastructure in the budget by the Finance minister for growth and development of rural India. Government is also focusing in solving the distress of the rural people.


keerthi surineni

7/20/2019 2:57 PM

Though in India the major source of living was agriculture its sad to see that they were given least priority.They were some reforms taken up by government but its still under progress to see that still what extent they were under progress of benefiting agriculture.In our latest budget for example, there are some reforms initiated by govt but they are not as up to the mark under peoples opinion.Can modi 2.0 will keep the promise of making the farmers income double by 2022?Worth waiting


Meenu

7/20/2019 3:01 PM

Execution of policies are more important than just forming it.Regular monitoring of the policies should be maintained.


v.divyateja

7/20/2019 3:03 PM

The reforms undertaken by the government in the recent budget were not as beneficiary to the farmers as compared to other sectors. in modi's 2.o government can we able to see the reforms help the farmers to double the income by 2022?


Rahul Sharma

7/20/2019 3:03 PM

Firstly due to Rain fall deficit in the current scenario hit down to grew Kharif corp this is resulting lower down the farming sector.

Secondly there is no proper planning of water for farming there is most of the village where farmer had suffer from basic requirement i.e electricity,water,seed price hikes,proper training and much more.So it is bigger task for NDA government that how they can overlooks this facts.


Sunil Ingale

7/20/2019 3:13 PM

Focusing on Major issues such as Rural Consumption, Connecting Rural India and urban India through digitization can help drive economy towards 5 tr Dollar.


Akash Dixit

7/20/2019 3:17 PM

As india is becoming digital India, so along with yojna's goverment has to help our farmers with some Techonologies .

this will help Farmers to do effecting farming and helps to become 5Tn. New India.


jyothsna sree

7/20/2019 3:18 PM

Implementing schemes doesn't make any sense unless until there is a proper vigilance monitoring how far these schemes are useful to the general public


K.AJAY

7/20/2019 3:19 PM

India should focus on

1. Skill development and employment for the future workforce

2. Socioeconomic inclusion of rural India

3. A healthy and sustainable future


Chandni Naidu

7/20/2019 3:19 PM

Grameen Bharath has missed out to grab attention in this financial budget with no major policy breakout to relive the burden as it is the major portion of GDP and Employment. Financial Minister should accelerate towards its investment, to achieve the set target of 5 Trillion economy by 2025.


mahesh

7/20/2019 3:21 PM

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and Pradhan Mantri Fasal Bima Yojana (PMFBY) are the 2 schemes

mentioned in the union Budget helpful to small farmers in rural Areas.


Najaf TK

7/20/2019 3:27 PM

government focused more on short-term measures to alleviate rural distress.. Union Budget presented by the finance minister Nirmala Sitharaman has disappointed the farm sector.


devarshi tak

7/20/2019 3:28 PM

Government should focus interest free loan for farming as well also provide subsidy in crop Insurance


Mohit

7/20/2019 3:28 PM

As in the budget there was no major announcement made towards the agricultural sector there should be a change made and proper infrastructure and facility to be provided.


Anshu Jain

7/20/2019 3:31 PM

with almost 50% of country's population relying on agriculture, government must provide reforms to boost agri production which makeup for 15% of the country's GDP. Also to become $5 trillion economy the workforce should be diverted to other sectors like manufacturing and services to improve productivity and increased employment.


ASHISH AGARWAL

7/20/2019 3:32 PM

Government can provide special incentives and come up with new projects/ technologies which can help in developing the rural /agricultural sector


vikram singh parihar

7/20/2019 3:38 PM

This time Modi government somewhat proven to be the

"jumlebaz" as the promises done on there manifesto on Zero Budget farming is seems to be nullified on the ground.The budget Modi gov.2.0 has totally disappoint the traditional farmers.the budget have very less weightage toward the enhancement of rural economy.


Chitrakant

7/20/2019 3:45 PM

why we not focus on organic agriculture instead of shifting from agriculture to manufacturing. Many country working on that and we have the infrastructure.


vishal

7/20/2019 3:46 PM

Technological development can help India to increase its potential GDP which will last forever . India being a emerging country increase in capital per labour will still boost our economy.


Madhusudana

7/20/2019 3:46 PM

Poor enforcement of contracts and dispute resolution is a big hurdle. Faster legal process should be top priority.


Sumithra

7/20/2019 3:49 PM

Considering investments in manufacturing and automation sectors would help India grow, but enhancing Agricultural reforms would contribute to proper economic development.


syed mahmood

7/20/2019 3:51 PM

Government should focus on the proper supply of seeds,fertilizers and better technologies to improve the quality and quantity of the production and maintain sufficient storage houses and the major is water resource and M S P lower price for their yield.due to these issues agricultural sector is down. focus should be on investment in farm sector and transplant price of the production.


vijitha v c

7/20/2019 3:53 PM

Indian interim budget before the elections was a populist budget, but i think Mrs Sitha raman has failed to boost the agricultural sector by bringing better reforms to the table


Shivani Singh

7/20/2019 3:55 PM

removal of middleman, training regarding use of online platforms for farmers should be introduced and be worked upon it not on papers only, hard and quick steps should be taken regarding transparent pricing and it should be thoroughly followed with immediate effect.


Shikha Pattanaik

7/20/2019 3:56 PM

It is true that India needs shift the workforce from agriculture to manufacturing and services in order to grow GDP 7-8%. But we can't deny the fact that as most of the population is dependent on agriculture in India, the budget should have focused more on improving their state as well.


Neha Saxena

7/20/2019 3:57 PM

I personally feel that India is an agriculture based economy and almost 60 percent of rural workforce is engaged in agriculture sector and it is their only mean of lively hood, So instead of shifting the work force from agriculture to manufacturing sector, the government should take major reforms to boost the agriculture sector and should also increase it's export . The country like India has plethora of unique features in its agriculture sector, which will give India an edge over other countries. This will not only boost rural sector but also increase the country's exports and there by will accelerate it's economic growth


Vijay

7/20/2019 4:08 PM

From Budget, FM announced that Zero Budget farming, helps farmers income will double upcoming years


NAGA RAJU D

7/22/2019 5:20 PM

Zero Budget farming, helps farmers income will double but i think Mrs Sitha raman has failed to boost the agricultural sector by bringing better reforms to the table Skill development and employment for the future workforce Socioeconomic inclusion of rural India A healthy and sustainable future


perumalla sri hari priya

7/22/2019 5:20 PM

In order to make INDIA an $5tn economy, the government should 1.focus and press the reforms button

2.accelerate investments in the farm sector

3.and focus on 'Grameen Bharat' as it lays the foundation for much-needed growth by contributing a major portion to the GDP and employment.


Vijay Krishna

7/22/2019 6:12 PM

Investments in both manufacturing and automation sectors would help India grow better but have to enhance agricultural reforms which can contribute to proper economic development


Roja

7/22/2019 6:32 PM

Indian states are now needed to be policy-driven, governance shall be performance-driven with full accountability, a transparent ecosystem and various norms are being eased.


Viswa Ramya

7/22/2019 6:36 PM

central government should help in providing financial support to the farmers


Sourabh Kataria

7/22/2019 6:44 PM

Focusing on major issue like farmers income, Rural consumption & Connecting rural India through digitalization can help drive the economy towards 5 trillion Dollar ..


Balaram

7/22/2019 6:45 PM

There is no need to shift our workforce from agriculture to other sector to increase GDP.Government should focus more on agriculture sector should provide some financial assistance to encourage more farmers and just by saying zero budget farming it does not mean anything government should implement those reforms accurately.


Aman

7/22/2019 6:50 PM

Focusing on Major issues such as Rural Consumption, removing of middleman, rain harvesting for water storage


Jayana Jha

7/22/2019 6:53 PM

Zero channel criteria for distribution and to provide raw materials and machinery on low cost can help agriculture sector to grow.


Pragya rai

7/22/2019 6:55 PM

Farmers are the ultimate source of consumption resources. Yet proper subsidies and allowances can help them to bring out best in the economy.

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