Call-off of Farm Protests will add 0.25% in India’s GDP in 2021-22: PHD Chamber

Pradeep Multani, President, PHD Chamber of Commerce and Industry, has appreciated the farmers for their decision to call off the 15 month long agitation.

This positive development will add 0.25% in India’s GDP in 2021-22 through smooth flow of supply chains and resumption of full-fledged day to day economic activities particularly in the States of Punjab and Haryana and border areas of National capital Delhi.

Industry Body PHD Chamber of Commerce and Industry is expecting GDP growth at 10.25% in the current financial year 2021-22.

Call-off to farmers’ agitation will lead to smooth execution of production processes of MSMEs in Punjab, Haryana and border areas of Delhi, given the need of frequent procurement of raw materials by such units, said Pradeep Multani.

Return of the workers who shifted from their respective factories to join the agitation will increase the production efficiency of the businesses. Also, the decision to form a committee to address the farm issues would go a long way to identify the actual pain points of the farmers and help the government to make adequate farm policy to enhance the income level of the farmers, particularly the marginal farmers which are 80% of the total farmers and hold less than 2 hectare of land.

Various reforms announced by the Government during the last many quarters along with the decision of farmers’ to end their more than a year-long movement has created facilitating ambience for the MSMEs in the region to rejuvenate from the daunting impact of Covid-19 and move forward, said Pradeep Multani.

There are around 25 lakh MSMEs in Punjab and Haryana which employ more than 45 lakh workers in their respective factories contributing more than Rs. 4 lakh crore in the total Rs. 13 lakh crore GSDP (current prices) of Punjab and Haryana. The GSDP (Gross State Domestic Product) of Punjab and Haryana was estimated at Rs. 5.29 lakh crore and Rs. 7.64 lakh crore respectively in 2020-21 at current prices.

The economic activities such as the food processing, cotton textiles, garments, automobile, farm machinery, Information technology, trading, tourism, hospitality and transport will get benefitted from the call-off of farm agitation through smooth supplies of many raw materials to the industry. 

GDP of agriculture, forestry & fishing grew 4.5% H1 2021-22 which has significantly helped to pull economic growth from its lows of (-) 15.9% in H1 2020-21 to  13.7% in H1 2021-22. The re-emerging demand in the rural areas at the back of resilience of agriculture sector is supporting manufacturing and services sector activities.

The consistent and concerted efforts of the Government to boost agricultural exports are bearing fruit. During the April-November 2021, exports of agricultural and processed food products increased from US$ 11.6 billion in April-November 2020-21 to US$ 13.3 billion in April-November 2021-22, registering a growth rate of 13% year on year, said Pradeep Multani.