Government Investment in Agricultural Research, New Hopes for Farmers

The Economic Survey highlights the critical role of agricultural research in strengthening food security and improving farmers' livelihoods. According to the survey, every rupee invested in agricultural research, including education, yields an impressive return of ₹13.85. In the fiscal year 2022-23, ₹19.65 thousand crores were allocated to agricultural research, representing 0.43 percent of the agricultural GVA.

The survey also underscores the role of the Indian Council of Agricultural Research (ICAR), which has spearheaded numerous initiatives in crop and seed production, bio-fortified grains and oilseeds, millet promotion, animal health, mechanization, and post-harvest management. In the year 2022-23 alone, ICAR released 347 varieties/hybrids of 44 crops and notified 99 varieties of horticultural crops for commercial cultivation. ICAR and Syngenta have signed a MoU to promote climate-resilient agriculture and training programs.

Advancing India's Future towards Prosperity:

Creating opportunities for food processing and exports, and making the agricultural sector attractive and productive for urban youth, is essential. Despite substantial subsidies and support, India's agricultural sector still faces many challenges. Current policies often work at cross-purposes, undermining soil fertility, depleting groundwater, and polluting the environment. The Economic Survey advocates reorganizing these policies to remove the barriers to agricultural progress. Addressing these issues will help India advance towards a prosperous future for its farmers and the nation. The Economic Survey 2023-24 provides insights and a roadmap to achieve these goals.

GDP Growth Forecast at 8% for FY25:

Sanjiv Puri, President of CII, expressed confidence in India's growth trajectory, stating that he believes India's GDP growth for FY25 will surpass the forecast given in the survey, with the potential to reach 8 percent. Puri highlighted six key areas for focus: boosting private investment, expanding MSMEs, positioning agriculture as a growth engine, financing green transitions, bridging the education-employment gap, and building state capacity and capability. These focus areas are expected to accelerate India's vision of a developed nation.

Moving Towards a Developed India by 2047:

Chandrajit Banerjee, Director General of CII, said the survey provides a futuristic vision to boldly advance India towards achieving developed economy status by 2047. Focusing on agriculture, capital expenditure, asset monetization, reducing the education-employment gap, expanding MSMEs, and promoting sustainability will rev up the economy's growth engines.

Key Focus Areas Highlighted in the Survey:

The survey emphasizes sustainable agricultural practices, including the use of local seeds and natural farming methods. It also recommends utilizing agricultural residue for mulching and composting. The Open Network for Digital Commerce (ONDC) is noted for its potential to significantly enhance farmers' and artisans' livelihoods, with around 5,700 Farmer Producer Organizations (FPOs) joining the network and conducting over 23,000 transactions in Q4 of FY24. The agricultural sector's performance is critical to the economy's growth, having maintained an average growth rate of 4.18 percent over the past five years. Allied sectors such as animal husbandry, dairying, and fisheries are gaining prominence for their potential to enhance farmers' incomes. The survey suggests a greater emphasis on high-value agriculture, including fruits and vegetables, fisheries, poultry, dairy, and buffalo meat, to boost smallholder farmers' incomes. Promoting crop diversification towards oilseeds, pulses, and horticulture requires addressing issues such as investment in agri-infrastructure, credit accessibility, and appropriate market institutions. The Minimum Support Price (MSP) has effectively incentivized crop diversification, positively impacting retail prices.

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Improving Market Infrastructure and Encouraging Private Investment: Initiatives such as e-NAM, promoting FPOs, and allowing cooperatives to participate in agri-marketing are recommended to improve market infrastructure. Creating a competitive framework through an index to rank states and providing financial incentives for modernizing agricultural marketing can drive significant improvements. Investment in technology, production methods, marketing infrastructure, and reducing post-harvest losses is crucial for scaling up agricultural productivity. Private sector investment in these areas, along with developing the food processing sector, can reduce wastage, increase storage duration, and ensure better prices for farmers.

Agricultural research and sustainable practices hold the key to transforming India's agriculture sector into a robust growth engine. By addressing policy inconsistencies, enhancing infrastructure, and promoting high-value agriculture, India can secure a prosperous future for its farmers and the nation. The insights from the Economic Survey 2023-24 provide a roadmap for achieving these goals and reaffirm the significant returns on investment in agricultural research.