Consistent 5% farm growth can help absorb surplus labour

The Economic Survey for 2024-25 (FY25) has said a consistent and stable growth of agriculture at around 5 per cent, with a 20 per cent share of overall GVA (gross value added) in the economy, would absorb surplus labour as output per worker and output per hectare rise.

- SANJEEB MUKHERJEE

It also called for making Indian farming "free, empowered, and emboldened" to move away from water-dependent crops, and expanding irrigation and investments in agriculture research to tackle climate change.

The Survey claimed that agricultural income has increased 5.23 per cent annually in the past decade, compared to 6.24 per cent for non-agricultural income and 5.80 per cent for the overall economy. It suggested policy reforms to discourage overproduction of cereals while boosting output of pulses and edible oils.

"Any increase in farmers' income not just improves their lifestyle but also decreases the risks for the banking system as farmers are able to pay back loans on time," said Vishal Sharma, cofounder and CEO of AdvaRisk, an ICICI and Nabard-backed fintech startup.