FIVE PROBLEMS TO RESOLVE IN BUDGET 2025

NOTHING crystallises public attention like a data point.

- SHANKKAR AIYAR

This week, India was informed that GDP growth in 2024-25 slid to 6.4 percent. Public investment is lower, industrial growth poorer and consumption is slower. There is much lather on ways to prop consumption—for instance, with a cut in income tax rates. Gaming growth numbers may deliver an illusion. Sustainability calls for fixing problems—and growth will follow. Here are a few ideas, in no particular order.

National grid for perishables: A major factor hurting demand is food inflation—hovering at 7+ percent for over a year, particularly in perishables. India needs a national grid for perishables, akin to what Verghese Kurien created for milk. Induction of a national grid will catalyse higher yields, improve farmer incomes, spur employment and curb post-harvest wastage that’s estimated at 25 percent.

The grid will bridge forward and backward linkages. For starters, the government could use the one district, one product database and use the Amul and Mother Dairy procurement models. Storage will follow procurement as cooperatives and private players enter production contracts. For sure, the template will need policy tweaks for contracts, enhanced credit via Kisan credit cards and funding of cold chains at panchayats.