Agrarian crisis clear & present danger for Indian economy
For a government that will face the litmus test of its policies through a national election within six months, the farm sector's woes are unsettling
India’s gross domestic product (GDP) growth for the second quarter (Q2) has laid bare the deepening distress in its villages. Farm incomes haven’t risen even though the government has announced a hike in minimum support prices. The country’s agricultural output, measured as gross value added, grew at a sedate pace of 2.8%, far slower than the 5.3% in the June quarter. This was on top of a low base of 2.6% growth last year.