The country’s agriculture and allied growth is likely to slip to 3 per cent in the ongoing fiscal from around 5 per cent last year, according to a Niti Aayog member.
For the 2016-17 fiscal, the farm sector growth was pegged at 4.9 per cent, which is likely to be revised upward taking into account the final foodgrain production figures. “Looking at the performance of the Kharif season, I can say with confidence that growth will be more than 3 per cent,” Niti Aayog member Ramesh Chand said on the sidelines of an event on the role of technology in driving agriculture business growth.
Chand said that the expected 3 per cent growth this year was not that bad when compared to the 2016-17 fiscal when the sector grew from a low base effect. The farm growth in 2015-16 stood at 1.2 per cent due to poor monsoon and drought.
“The base effect may not be good this year though the Kharif season went off well. We need to see how the Rabi season performs,” Chand said. After taking into account the Rabi season performance, the final farm sector growth figures might be revised later, he said. Chand said, as of now, the Rabi sowing prospects were good as water in reservoirs was in a good position.