Can agriculture sector become India's growth engine? Economic Survey 2024 says THIS

The Economic Survey 2024, tabled by FM Nirmala Sitharaman in Lok Sabha, stated that the agriculture sector could be a growth engine for India and the world as the scope for countries to squeeze out growth in manufacturing and services is narrowing due to resource-hoarding, trade protectionism, excess capacity, dumping, and artificial intelligence.

“A return to roots, as it were, in terms of farming practices and policymaking, can generate higher value addition from agriculture, boost farmers’ income, create opportunities for food processing and exports and make the farm sector both fashionable and productive for India’s urban youth,” the survey read.

“When resolved, the problem areas mentioned above that the current policy configuration has created over the years can become sources of India’s strength and a model for the rest of the world — developing and developed," it further said.

According to the survey, the agriculture sector is one area ripe for and in need of such a pan-India dialogue. “Agriculture and farmers matter for a nation. India is no exception. India subsidises their water, electricity and fertilisers. The former two are provided virtually free. Their incomes are not taxed.”

“The government offers them a minimum support price (MSP) for 23 selected commodities. Monthly cash support is offered to farmers through the PM-KISAN scheme. Indian governments – national and sub-national –write off their loans. So, governments in India spend enough resources to look after the farmers well,” the economic survey read.

“Yet, a case can be made that they can be served better with some re-orientation of existing and new policies. A panoply of policies – by national and sub-national governments - working at cross purposes with each other is hurting farmers’ interests, destroying soil fertility, depleting groundwater, polluting rivers and the environment with nitrous oxide emissions, starving the crops of nutrients and undermining people’s health with a diet rich in sugar and carbohydrates rather than fibre and protein,” the survey said.

“The payoff will be immense if we untie the knots that bedevil farm sector policies. More than anything else, it will restore faith in the self-confidence and ability of the state to steer the nation to a better future, apart from delivering socio-economic benefits,” it added.