India's Agriculture - Higher Reward For The Right Act: Dolat Capital

Dolat Capital Report

India’s agriculture sector has fallen short of expectation because of various growth impediments faced by the sector - low productivity and farm incomes, dependence on weather patterns, inadequate marketing infrastructure and many others.

Last couple of years, high inflation and bad monsoon has adversely impacted the overall sector and there seems to be growing divergence in trends in terms of employment and growth prospects.

Policy makers can play a crucial role in reviving the primary sector by addressing some challenges which would help to-

1. achieve food and nutrition needs of the growing population,

2. serve as a neutralizer during times of geopolitical uncertainties that could impact sectors like manufacturing and services and

3. realize better prosperity for rural economy and drive demand for industrial goods, propelling the manufacturing sector, thereby leading to benefits of higher multiplier effect on overall GDP.

Policies which provide the right income support to the farmers and addresses requirements around farm mechanization, infrastructure, technology, et al, would help to increase the overall agriculture output.

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