28/06/2021 - Government policies

KEY POINTS

·        Economic growth had already decelerated to 4% in 2019-20, the sharp decline in GDP was partly a result of the trend of a slowdown in economic activity since 2016-17.

·        Agriculture was the only major sector (other than electricity, gas, water supply and other utility services) which reported an increase in Gross Value Added (GVA) in 2020-21.

·        It not only provided jobs to returning migrants but also sustained the economy in the rural areas.

·        Agriculture has not only been the biggest saviour during the period of the pandemic but has consistently been an important driver of the economy throughout the last five years.

·        Unlike last year, the Government has not increased the allocation this year for the National Rural Employment Guarantee Scheme (NREGS).

·        Agricultural wages continue to stagnate, one indicator of declining demand is the decline in wholesale prices of most of the agricultural commodities.

·        The net result is a peculiar situation where output prices for dominant agricultural commodities in the domestic market are declining while consumer prices of essentials such as edible and pulses are contributing to rising inflation.

·        Rising inflation further threatens to reduce the purchasing power of the rural economy struggling with declining incomes and job losses.

·        Despite these setbacks, the rural economy including the agricultural economy continues to remain crucial for any strategy of economic revival.

Please review  mam/sir

Please review it.

Thanks

Kindly review.Thankyou