The concerns about the downsides of these schemes are overblown, and they could go some way in alleviating rural woes
Since the Union Budget 2018-19, there has been a great deal of discussion in the public domain regarding the health of the rural sector. We believe that the rural sector needs some policy intervention, be it price support or income support. As a case in point, the agri gross domestic product (GDP) deflator has declined from 9.9% in FY13 to merely 1.1% in FY18. Such a decline also coincides with the inflation-targeting regime introduced by the Reserve Bank of India (RBI) from FY13.