MUMBAI, 22 July (Commoditiescontrol): Finance Minister Nirmala Sitharaman has presented the Economic Survey for the year, offering detailed insights into the country's economic performance and future projections. The survey forecasts an economic growth rate of 6.5% to 7% for the upcoming fiscal year, driven by a combination of domestic and global economic conditions, policy initiatives, and investment trends.
The survey examines sectoral performances, fiscal developments, and macroeconomic indicators influencing the nation's growth trajectory. One of the notable highlights is the positive trends in the agriculture sector, despite some challenges.
Agricultural credit witnessed significant double-digit growth during the financial year 2024. Credit to agricultural and allied activities surged nearly 1.5 times, from Rs 13.3 lakh crore in FY21 to Rs 20.7 lakh crore in FY24. However, Gross Value Added (GVA) in agriculture grew at a slower pace due to erratic weather patterns and uneven monsoon distribution in 2023.
The survey underscores the vital role of the Kisan Credit Card (KCC) scheme in providing timely and accessible credit to farmers. By the end of 2023, there were over 7.4 crore active KCC accounts. In April and May 2024, bank credit to agriculture and allied sectors grew by 19.7% and 21.6% year-on-year, respectively.
In FY24, the shares of agriculture, industry, and services sectors in overall GVA at current prices were 17.7%, 27.6%, and 54.7%, respectively. Total foodgrain output for FY24 saw a marginal decline of 0.3%, according to the third advanced estimate of foodgrain production released by the Ministry of Agriculture and Farmers' Welfare (MoAFW).
The survey indicates that smallholder farmers cannot significantly boost their income by producing traditional crops like rice, wheat, millets, pulses, or oilseeds. Instead, they should shift to high-value agriculture such as fruits and vegetables, fisheries, poultry, and dairy farming. The growing importance of allied sectors like animal husbandry, dairying, and fisheries in enhancing farmers' income suggests a need to focus more on these activities.
Promoting Farmer Producer Organizations, the e-National Agriculture Market (e-NAM), and allowing cooperatives to participate in agri-marketing could lead to better price discovery and improved farmer incomes, the survey suggests. The agriculture sector, which has grown at an average rate of 4.18% over the last five years, remains crucial for the economy's growth.
In 2022-23, India's food grain production reached an all-time high of 329.7 million tonnes, and oilseed production was 41.4 million tonnes. For 2023-24, food grain production was slightly lower at 328.8 million tonnes, primarily due to poor and delayed monsoon. However, the production of other crops, such as Shree Anna (nutri cereals) and oilseeds, saw marginal increases.
The Economic Survey is an annual report providing a comprehensive review of the Indian economy during the fiscal year. It is prepared by the economics division of the finance ministry's department of economic affairs under the guidance of India's chief economic advisor (CEA).
(By Commoditiescontrol Bureau; +91 98201 30172)
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