Fall in agricultural development in India

Its official. 

The GDP figures have been reported at 5.3 % year-on-year basis for the 3rd quarter.

The IIP fell to 0.8% points from 4.7% in the previous quarter.

Fixed investment fell to 5.3% from 15.1%.

Private consumption weakened to 5.4% from 6.9%.

Exports increased to 11.4 from 10.6%.

Government consumption increased to 24.6% from 7.9%

Most of these figures were predictable.

 

 Whats alarming in this is the fall in agricultural output. Agriculture contracted by 2.2% (year-on-year) points from the past 6.9% level. 

A contraction is what is alarming here. Government had predicted the output at 6.1%!

I believe, its only the agricultural sector that can help India in the present crises. The exports are expected to fall given the hilt the rupee has reached to. Rupee cannot be expected to fall further given the present low levels. In addition to the weakening demand, a fall is certainly in sight. Industrial Production also cannot be expected to rise anytime soon. 

What can help India reach the 7.1% mark (set by the Government) is a rise in agricultural output. Food is one commodity that is the last to be affected during recessions. Being an essential item for living, its demand is expected to be maintained. 

Government has to play its role in promoting agriculture by providing more incentives and trying avoiding the internal migrations that we have seen in the past decade.

I think there lies a solution for India to maximise on its efforts in trying to out beat the crises and pave the way for future sustainable growth.