In the 75th year of India’s Independence, the world has recognised the Indian economy as a “bright star” as its economic growth is estimated at 7 percent, which is the highest among all major economies, in spite of the massive global slowdown caused by COVID-19 and the Russia-Ukraine War. This was stated by Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman while presenting the Union Budget 2023–24 in Parliament. She emphasized that the Indian economy is on the right track and, despite some challenges, heading towards a bright future.
The finance minister said that the digital public infrastructure for agriculture will be built as an open source, open standard, and interoperable public good, and this will enable inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
Sitharaman announced the establishment of an agriculture accelerator fund to encourage agri-startups by young entrepreneurs in rural areas, with the goal of bringing innovative and affordable solutions to farmers’ challenges. It will also bring in modern technologies to transform agricultural practices and increase productivity and profitability.
To enhance the productivity of extra-long staple cotton, the government will adopt a cluster-based and value-chain approach through public-private partnerships (PPP). This will mean collaboration between farmers, the state, and industry for input supplies, extension services, and market linkages.
The FM announced that the government will launch the Atmanirbhar Clean Plant Programme to boost availability of disease-free, quality planting material for high-value horticultural crops at an outlay of Rs. 2,200 crores.
Smt. Sitharaman quoted the Prime Minister as saying, “India is at the forefront of popularising millets, whose consumption furthers nutrition, food security, and the welfare of farmers.” She said that India is the largest producer and second-largest exporter of “Shree Anna” in the world as it grows several types of “Shree Anna,” such as jowar, ragi, bajra, kuttu, ramdana, kangni, kutki, kodo, cheena, and sama.
She mentioned that these have a number of health benefits and have been an integral part of our food for centuries, and she acknowledged with pride the huge service done by small farmers in contributing to the health of fellow citizens by growing these ‘Shree Anna.” She added that to make India a global hub for “Shree Anna,” the Indian Institute of Millet Research, Hyderabad, will be supported as the Center of Excellence for sharing best practices, research, and technologies at the international level.
Dwelling on welfare measures for farmers, the finance minister announced that the agriculture credit target will be increased to Rs. 20 lakh crores with a focus on animal husbandry, dairy, and fisheries.
She informed us that the government will launch a new sub-scheme of the PM Matsya Sampada Yojana with a targeted investment of Rs. 6,000 crores to support the activities of fishermen, fish vendors, and micro- and small businesses, improve value chain efficiencies, and expand the market.
For farmers, especially small and marginal farmers, and other marginalized sections, the government is promoting a cooperative-based economic development model. A new Ministry of Cooperation was formed with a mandate to realise the vision of “Sahakar Se Samriddhi”. To realise this vision, the government has already initiated the computerization of 63,000 primary agricultural credit societies (PACS) with an investment of Rs. 2,516 crores.
In consultation with all stakeholders and states, model bye-laws for PACS were formulated, enabling them to become multipurpose PACS. A national cooperative database is being prepared for country-wide mapping of cooperative societies.
Smt. Sitharaman said that the government will implement a plan to set up massive, decentralised storage capacity, which will help farmers store their produce and realise remunerative prices through sales at appropriate times. The government will also facilitate the setting up of a large number of multipurpose cooperative societies, primary fishery societies, and dairy cooperative societies in uncovered panchayats and villages in the next 5 years.
Agriculture and allied sectors are the mainstay for the majority of the Indian population. With rising incomes, a greater level of urbanization, and changing consumption patterns, there is a shift in demand towards more processed food. Agriculture today is slowly moving away from conventional farm produce toward greater production of fruits and vegetables, as well as dairy, poultry, meat, and fisheries. As per estimates, by 2030, the agribusiness and related sectors have the potential to contribute over $800 billion in revenue with an investment of $272 billion.
Also, India is expected to play an increasingly critical role in shaping the nutritional security agenda for the Indo-Pacific. This presents an opportunity for the food processing sector to develop a higher level of integration with countries in the Gulf, Southeast Asia, and Africa regions. Supply side policy interventions should be in sync with demand generation initiatives in target countries for both primary and processed food products from India.