Economic survey: Farming will be the biggest support for the economy
Finance Minister Nirmala Sitharaman presented the 2020-21 Economic Survey in Parliament on the first day of the budget session. According to the survey, the biggest support for the economy this year is farmers and their farming. The growth rate of the agriculture sector is expected to be 3.4%. Its share in GDP will also increase. It was 17.8% in the year 2019-20, which is expected to be 19.9% this year. The industry is expected to decline 9.6% in the current financial year. The growth of the service sector is also estimated to be -8.8%.
Though there is a riot in Delhi against the new agricultural laws, these laws have been praised in the Economic Survey. According to the survey, small farmers will benefit from the new laws. Farmers will have more rights when dealing with processors, whole sellers and large retailers. 85% of the total farmers in the country are small farmers.
The risk still remains for farmers due to uncertainty in farming. The risk from the new laws will be for those who deal with farmers in contract farming. Farmers will be able to fix the price of their crop. They will also get its payment in three days. Contract farming will also bring new technology to farming. The survey said about the measures that can be adopted to accelerate economic growth rate, India is currently the fifth largest economy in the world. If it has to reach the third place, then innovation has to be focused. The global economy will also decline by 4.4% this year due to Corona. This will be the biggest decline in a century.