India's dilemma: Farm yield rises, industrial growth sluggish

As the Government boosts minimum support prices and extends credit schemes to sustain rural momentum, policymakers face a complex balancing act — how to nurture farm-driven optimism amid factory-floor fatigue and an uncertain global trade climate

- 

India’s agricultural sector is charting new territory as record-breaking food production sets the stage for a stronger presence in global export markets. While farms flourish, a contrasting picture emerges in the industrial landscape, where stagnating production signals underlying economic strain. This divergence underscores a shifting balance in India’s growth narrative — buoyant fields amid faltering factories.

To pace it up further, the Centre also increased the kharif crop minimum support price (MSP) focusing on pulses, oilseeds and coarse grains. The MSP for paddy was raised by Rs 69, three per cent, to Rs 2369 per quintal. The MSP of 14 other items including groundnut, sunflower seed, cotton, tur/arhar, and niger seed benefitted.

The Centre claims that its procurement of wheat has surpassed previous three-year records yet is below the target. The 5 per cent interest subvention scheme on Kisan Credit Card up to Rs 3 lakh will continue. Amid such a farm yield bonanza, the stymied industrial production remains a concern. The country's industrial output growth slowed to an 8-month low in April, dragged down by contraction in mining, sluggish electricity and manufacturing sectors. It is dipping since reaching a peak of 6.2 percent in April 2024 which had fallen to minus 0.1 per cent during mid-year.

India has achieved a record food grain production of 353.95 million tonnes (MT) in the 2024-25 crop season. This is largely due to record harvests of paddy (rice) — 149.07 MT, wheat — 117.50 MT, and maize — 42 MT.

India surpassed China to become the world’s largest rice producer. Maize production jumped by 12.3 per cent. Oilseeds yield also rose by 7.4 per cent.