Good news is pouring in for Indian agriculture sector. While yesterday, the Economic Survey pegged agricultural growth at 4.1%, the Union Budget 2017 presented today by finance minister Arun Jaitley gave away a slew of sweeping measures to boost farm growth.
Indian agriculture sector is set to accelerate at a faster pace this year in comparison to last year.
Let us have a look at the key highlights of the Union Budget that are likely to benefit Indian agri sector.
Government has given special emphasis over Crop insurance, wherein Finance Minister has increased coverage under Fasal Bima Yojana scheme from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19.
Government has introduced two new funds to boost Irrigation under NABARD, one would be long-term irrigation fund, while other one is Micro Irrigation Fund.
Finance Minister has also increased target for agricultural credit from 9 lakh crores in 2016-17 to record level of rupees 10 lakh crores in 2017-18.
Government will also work in close association with NABARD for computerization and integration of all 63,000 functional PACS with the Core Banking System that would aim at improving efficiency of delivery and recovery and reduce PACS losses. This is likely to be done in 3 years at an estimated cost of 1,900 crores.
Related post: Budget 2017: Reforms to bolster agricultural growth
Government also aims at setting up mini-labs in 684 Krishi Vigyan Kendras in the country. In addition, 1000 mini labs will also be set up by qualified local entrepreneurs with the help of government subsidy.
Last but not the least, MGNREGA allocation is the highest so far, with Rs 48,000 crores allocated for 2017-18.
