OneWorld.net (U.S.)

With rural livelihoods and low farm growth continuing to be matters for concern, the prime minister announces funds to ensure that the benefits of a booming economy reach every citizen, for a more ‘inclusive’ growth India will increase its spending by at least Rs 250 billion (US$ 6.14 billion) on the country’s ailing farm sector in a bid to boost agricultural output and ensure inclusive growth, a key concern of the government.

This was announced by Indian Prime Minister Dr Manmohan Singh in his Independence Day speech, in New Delhi on August 15, which stated that the government would also spend more on education, healthcare and rural development.

In his speech to the nation, Dr Singh stressed that the welfare of farmers was a core concern and that the urban-rural divide needed to be bridged. “Farmers are the backbone of our nation. Unless they prosper, the nation cannot prosper. I reassure our farmers that their welfare lies at the core of all our concerns.”

Dr Singh added that the ambitious programme, which focuses on drought-prone areas, would enhance the livelihoods of Indian farmers and increase food production. He said that he would personally tour a few states to review the situation.

“Our growing economy and population need more foodgrain,” the prime minister said. “I am confident as we roll out our ambitious agricultural development programme we will see a boost in foodgrain production in all parts of the country, particularly in regions untouched by the first Green Revolution,” he said.

“The transformation of rural India that we seek, and the progress we seek, are not possible unless we increase the productivity of our farms and the income of our farmers,” the prime minister said.

At the same time, he acknowledged that given the large chunk of population that is dependent on farming and the small size of holdings, there was a limit to how much income agriculture alone could generate. “It is essential we create new employment opportunities outside of agriculture. Remember, there is no developed country today anywhere in the world that is not an industrial economy. Industrialisation is critical for progress.”

India’s US$ 854 billion economy has grown at an average rate of 8.6% in the past four years, making it the world’s second fastest growing major economy after China. However, the agriculture sector has grown at only a little over 2% in this period and agrarian distress is widespread, with rural indebtedness and farmer suicides on the rise.

Singh said that while the government believed that industrialisation was the most effective means to create new employment opportunities, the transition to an industrialised economy from a farm-dependent one had its cost and the government would ensure that farmers did not suffer.

He added: “I agree it is the responsibility of government to ensure that displacement does not lead to impoverishment, that those who lose land do not lose livelihoods, and that those who have lost employment get better opportunities... We are, therefore, giving final shape to a national policy for rehabilitation and resettlement for all those displaced by major projects. It is our societal obligation.”

“India cannot be a nation with islands of high growth and vast areas untouched by development, where the benefits of growth accrue only to a few. This is good neither for our society nor for our polity,” he said.

The government is also expected to help provide social security to senior citizens above the age of 65, who are poor. It will widen access to education by setting up 6,000 new schools and help the states start colleges in 370 districts, Singh said.

Source: InfoChange