[Answered] “PM-KISAN scheme will not only lead to welfare of farmers, but can act as an important tool for India’s economic growth.” Discuss.

Recently, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) programme to provide an assured income support to the small and marginal farmers. Vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year.

Need of PM-KISAN scheme:

1. Declining prices of agricultural commodities in the international market and fall in food inflation in India since 2017-18, relative to non-food sector, therefore reduced the returns from farming.
2. To increase the income of farmers as small and fragmented land holdings and their further divisions has contributed in declined income.
3. To provide structured income support for procuring inputs such as seeds, fertilisers, equipment, labour and other needs.
4. This component is not linked to extent of land owned and will greatly benefit share croppers and actual cultivators most of whom own very small extent of land.

How PM KISAN would lead to farmers welfare and economic growth?

1. PM Kisan Scheme would act as a strong consumption stimulus, that will help in economic growth especially due to ongoing slower economic growth due to decreased rural demand.
2. PM KISAN would help in more autonomy thereby giving the power to farmers to utilise money according to their needs. This will help in enhancing agricultural productivity and output leading to overall growth and income.
3. PM-KISAN would help in reducing poverty, ensure sustainable food security, and inclusive growth and wellbeing of farmers. The farmers will have complete independence to take up interventions as per their needs.
4. PM-KISAN will entrust farmers with the responsibility of using welfare spending as they see best, this may not be the case with in-kind transfers. This will help them in better decision making and will help them to increase their income and overall growth.    
5. This income floor will provide a safety net against health, income and other shocks. 
6. This will encourage greater usage of bank accounts, leading to higher profits for banking correspondents (BC) and an endogenous improvement in financial inclusion.
7. A guaranteed income will reduce the pressures of finding a basic living on a daily basis thereby instilling farmers with confidence and thus will motivate them to work more efficiently.

Thus PM-KISAN is an important scheme for farmer’s welfare. This would help in economic growth and would plug the slow rural demand that has led to slow economic growth. Government should ensure the timely release of funds to the scheme and should try to include other pools too.