Agriculture Could be Saviour of the Economy, Estimated to Increase by 2.7 percent

The country's agricultural system can take a break through the epidemic trapped in the economy. According to the Economic Outlook Survey of the industrial organization FICCI, the growth rate of the agriculture sector in the country is expected to be 2.7 per cent in the current financial year 2020-21. 

In the survey, the overall growth rate of the country has been estimated to fall by 4.5 per cent as compared to the growth rate of the previous financial year. The growth rate for the first quarter (April-June) of the current financial year has been estimated to fall by 14.2 per cent over the same period of the previous financial year. According to the Economic Survey, the industry is projected to fall by 11.4 per cent in the current financial year and 2.8 per cent in the services sector. 

Economic experts have also demanded a second relief package from the government to save the economy. According to the Economic Outlook survey, during the current financial year, the maximum growth rate of primary sector agriculture of the economy can go up to 4 per cent and if there is very poor performance. The agriculture sector may also fall by 0.8 per cent. The rate of 2.7 per cent is between these two. 

According to the survey, the best performance of GDP in the current financial year is expected to increase by up to 1.5 per cent and a decline of 6.4 per cent in the case of very poor condition. There may be an increase and a 4.5 per cent decline can be seen on very poor performance. During this period, the industry sector may fall by a maximum of 14 per cent and if performance is good, this decline can be reduced to 2.3 per cent. 

According to the Economy Outlook Survey, wholesale inflation is expected to fall by 0.3 per cent in FY 2020-21. At the same time, retail inflation may increase to the level of 4.4 per cent. According to the economists participating in the survey, the measures taken so far to accelerate the economy have not made much difference. Therefore, another relief package is needed by the government. Especially money should be transferred to the account of the poor so that consumption can increase.