Finance Minister Nirmala Sitharaman has announced a significant allocation of ₹1.52 lakh crore for the agriculture sector in the Union Budget 2024. This move is expected to boost rural demand, especially for automobiles like entry-level two-wheelers and tractors.
Presenting the Budget on July 23, Sitharaman detailed the allocation, emphasising the government's commitment to strengthening the agricultural sector. The finance minister also introduced a plan to release 109 new high-yielding and climate-resilient seed varieties for 32 different field and horticulture crops. This initiative aims to enhance productivity and sustainability in agriculture, addressing both yield and climate challenges.
Sitharaman highlighted the potential impact of this allocation on the rural economy. The substantial investment in agriculture could drive demand for various products, particularly entry-level two-wheelers and tractors, benefiting the automobile industry. This, in turn, would support economic growth in rural areas, fostering a positive cycle of increased income and consumption.
In her speech, Sitharaman said, "The allocation of ₹1.52 lakh crore for the agriculture sector could benefit rural demand for automobiles - particularly entry-level two-wheelers and tractors." This statement underscores the broader economic implications of the budgetary provisions, linking agricultural investment with industrial growth and rural development.
The finance minister also announced that in the next two years, one crore farmers would be introduced to natural farming practices, supported by certification and branding initiatives. This move is part of the government's strategy to promote sustainable agricultural practices and ensure better market access for farmers adopting eco-friendly methods.
Additionally, the government plans to collaborate with state governments to enhance digital public infrastructure for agriculture. This initiative aims to leverage technology to improve agricultural productivity, provide better services to farmers, and facilitate efficient resource management.
The introduction of high-yielding, climate-resilient seed varieties is a critical component of the government's strategy to address the challenges posed by climate change and ensure food security. These new seed varieties are expected to withstand adverse weather conditions, thereby ensuring stable agricultural output even in the face of climatic uncertainties.
The emphasis on natural farming aligns with global trends towards sustainable agriculture, which seeks to minimise environmental impact while maintaining high productivity. By promoting natural farming practices, the government aims to reduce the dependence on chemical inputs, improve soil health, and enhance the overall sustainability of the agricultural sector.
The budget also highlights the role of digital infrastructure in modernising agriculture. Enhanced digital infrastructure will facilitate better data collection, real-time monitoring, and efficient resource allocation. This can lead to improved crop management, reduced wastage, and better market linkages for farmers.
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