Indian agriculture is a potential employer of over 44% of the population. However, the Indian economy is slipping into recession, apparently the lowest in six years. A sharp decline in the performance of key sectors such as agriculture is one of the possible reasons for this downfall. Improvising a selective group of sectors is the key to address the issue and agriculture is key to revival of Indian Economy.
Recession in the Primary Key Sector
Primary sectors are constantly scrutinized and thus, reeling under pressure. Agriculture grew by 2.9% from 2012 to 2018. According to the National Agricultural Policy (NAP), it should have been 4% to attain the desired economic growth of 8%. Additionally, the monsoon’s havoc disrupted food chains, slowed down the growth rate in the farm sector.
Currently, the growth rate in agriculture sector is inadequate to focus on developmental goals. Building on this, Former PM, Manmohan Singh stated the faulty implementation of GST and demonetization has led us to this misery. Thus, created worsened situations that require severe reimbursement.
Addressing the Slowdown
A prospect to enhance the Indian economy should never be disregarded. Thus, the center must address both the cyclical and structural problems transparently. The government must focus on improving wages and adopt new measures to spur demand. Also, it is important to revitalize a crucial economic sector like agriculture. It has the potential to regain overall financial growth.
The Process of Refinement
Rectification must always begin from the basics, in this case, the primary sector. By creating job opportunities in the agricultural sector as they can provide 44% employment, as mentioned earlier. Finally, the government must make agricultural reforms more expressive.
Thus, a combination of improvisations in key sectors, agriculture, and related sectors would not only kick start our way out of recession. But would also turn India back into the fastest growing economy in the world.