{"id":114927,"date":"2021-06-26T10:36:22","date_gmt":"2021-06-26T05:06:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114927"},"modified":"2021-06-26T10:36:22","modified_gmt":"2021-06-26T05:06:22","slug":"rural-economy-is-the-key-to-revival-of-indian-economy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rural-economy-is-the-key-to-revival-of-indian-economy\/","title":{"rendered":"Rural economy is the key to revival of Indian economy"},"content":{"rendered":"\n<p><b><span data-contrast=\"none\">Relevance<\/span><\/b><span data-contrast=\"none\">:\u00a0Decline in the GDP\u00a0due to COVID,\u00a0the role\u00a0of\u00a0agriculture\u00a0and\u00a0rural\u00a0employment generation in the revival process\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Synopsis:\u00a0<\/span><\/b><span data-contrast=\"none\">The rural economy continues to remain crucial for any strategy of economic revival.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">State of economy:<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">As per the\u00a0<\/span><b><span data-contrast=\"none\">National Statistical Office (NSO)<\/span><\/b><span data-contrast=\"none\">\u00a0the Indian Gross Domestic Product\u00a0(GDP)\u00a0declined by 7.3%.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">This was partly a result of a slowdown in economic activity since 2016-17 and partly result of a\u00a0<\/span><b><span data-contrast=\"none\">mishandling of the economic situation.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Indian economy suffered during first wave that is why any claim of recovery this year will be\u00a0<\/span><b><span data-contrast=\"none\">only statistical due to low base of last year rather than a real recovery.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Small and medium enterprises as well as the large\u00a0<\/span><b><span data-contrast=\"none\">unorganised sector<\/span><\/b><span data-contrast=\"none\">\u00a0have suffered severely during both the waves of pandemic.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Agriculture became an important contributor to the economic performance.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"2\"><span data-contrast=\"none\">It showed the\u00a0<\/span><b><span data-contrast=\"none\">resilience<\/span><\/b><span data-contrast=\"none\">\u00a0of the rural economy.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"2\"><span data-contrast=\"none\">Even though rural areas were the first point of\u00a0<\/span><b><span data-contrast=\"none\">refuge for a majority of migrants,<\/span><\/b><span data-contrast=\"none\">\u00a0agriculture was the only major sector which reported an increase in Gross Value Added (GVA) in 2020-21.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"2\"><span data-contrast=\"none\">The\u00a0<\/span><b><span data-contrast=\"none\">average growth rate<\/span><\/b><span data-contrast=\"none\">\u00a0of\u00a0agriculture GVA in the last five years, at 4.8%, is significantly higher than the GVA growth of the\u00a0economy, at\u00a03.6%, in the last five years.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Why there is need to focus on rural economy for revival of the Indian economy?<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Firstly,\u00a0<\/span><b><span data-contrast=\"none\">agriculture sector<\/span><\/b><span data-contrast=\"none\">\u00a0which is saviour of the economy is suffering from\u00a0<\/span><b><span data-contrast=\"none\">neglect<\/span><\/b><span data-contrast=\"none\">\u00a0and policy missteps by the Government.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"none\">Secondly, the\u00a0<\/span><b><span data-contrast=\"none\">second<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><b><span data-contrast=\"none\">wave affected rural areas<\/span><\/b><span data-contrast=\"none\">\u00a0in terms of health and livelihoods.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"2\"><span data-contrast=\"none\">Economic distress in rural areas is also unreported and underestimated.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"2\"><span data-contrast=\"none\">People have spent a large sum on private health care expenditure.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"2\"><span data-contrast=\"none\">It\u00a0has\u00a0led\u00a0to sharp rise in indebtedness from non-institutional sources.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><span data-contrast=\"none\">Thirdly, the Government has not\u00a0<\/span><b><span data-contrast=\"none\">increased the allocation<\/span><\/b><span data-contrast=\"none\">\u00a0for the\u00a0<\/span><a href=\"https:\/\/forumias.com\/blog\/mgnrega-issues-and-significance-explained-pointwise\/\"><span data-contrast=\"none\">National Rural Employment Guarantee Scheme (NREGS)<\/span><\/a><span data-contrast=\"none\">\u00a0despite an increase in employment demand in NREGS.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><span data-contrast=\"none\">Fourth,\u00a0<\/span><b><span data-contrast=\"none\">prices<\/span><\/b><span data-contrast=\"none\">\u00a0for dominant agricultural commodities in the domestic market are\u00a0<\/span><b><span data-contrast=\"none\">declining<\/span><\/b><span data-contrast=\"none\">\u00a0while consumer prices of essentials such as edible and pulses are contributing to rising inflation.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"2\"><span data-contrast=\"none\">The latest estimates of April 2021 showing a decline in rural non-agricultural wages by 0.9% per annum.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><span data-contrast=\"none\">Lastly<\/span><b><span data-contrast=\"none\">, rising input cost and rising inflation further reduces the purchasing power\u00a0<\/span><\/b><span data-contrast=\"none\">of the rural\u00a0economy.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"2\"><span data-contrast=\"none\">Rise in input prices for diesel and increase in fertilizer prices have also added to the misery of farmers.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Way forward:<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Proactive intervention<\/span><\/b><span data-contrast=\"none\">\u00a0to protect the rural population by speeding up vaccination.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\"><span data-contrast=\"none\">Need of\u00a0<\/span><b><span data-contrast=\"none\">greater fiscal support<\/span><\/b><span data-contrast=\"none\">\u00a0in terms of direct income support.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\"><span data-contrast=\"none\">Indirect support in the form of\u00a0<\/span><b><span data-contrast=\"none\">subsidies and protection<\/span><\/b><span data-contrast=\"none\">\u00a0from the rising inflation in input prices is the need of the hour.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Hence, the urgent intervention in rural economy is not just necessary to support economic revival but also to prevent another humanitarian crisis.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Source:\u00a0<\/span><\/b><a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=GL08N0GV7.1&amp;imageview=0\"><b><span data-contrast=\"none\">The Hindu<\/span><\/b><\/a><span data-ccp-props=\"{&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance:\u00a0Decline in the GDP\u00a0due to COVID,\u00a0the role\u00a0of\u00a0agriculture\u00a0and\u00a0rural\u00a0employment generation in the revival process\u00a0\u00a0 Synopsis:\u00a0The rural economy continues to remain crucial for any strategy of economic revival.\u00a0 State of economy:\u00a0 As per the\u00a0National Statistical Office (NSO)\u00a0the Indian Gross Domestic Product\u00a0(GDP)\u00a0declined by 7.3%.\u00a0 This was partly a result of a slowdown in economic activity since 2016-17 and partly&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rural-economy-is-the-key-to-revival-of-indian-economy\/\">Continue reading <span class=\"screen-reader-text\">Rural economy is the key to revival of Indian economy<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[216,8184,8241,8242,344],"class_list":["post-114927","post","type-post","status-publish","format-standard","hentry","category-public","tag-gs-paper-3","tag-indian-economy","tag-national-rural-employment-guarantee-scheme-nregs","tag-national-statistical-office","tag-rural-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114927"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114927\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}