Agriculture a silver lining, to grow 3.4%, cushion shock

Despite adversities of COVID19 induced lockdowns, India’s agriculture has been a silver lining with a growth of 3.4% at constant prices during 2020-21 (first advance estimate).

According to the Economic Survey 2020-21, agriculture is set to cushion the shock of the COVID-19 pandemic on the Indian economy in 2020-21, with a growth of 3.4 percent in both Q1 and Q2.

It is the only sector that has contributed positively to the overall Gross Value Added (GVA) in both Q1 and Q2 202021. Farm activities for rabi harvesting and kharif sowing were largely unaffected by the lockdown announced to tackle the spread of COVID-19. In view of the hope of a bountiful kharif harvest, the foodgrain production target has been set at 301 million tonnes for the crop year ending June. This is 1.5 percent higher than the record output achieved last crop year.

Total food grain production in the country in the agriculture year 2019-20 (as per Fourth Advance Estimates), is 11.44 million tonnes more than during 2018-19.

The actual agricultural credit flow was 13,92,469.81 crores against the target of 13,50,000 crores in 2019-20. The target for 2020-21 was 15,00,000 crores and a sum of 9,73,517.80 crores was disbursed till 30th November, 2020.