 Economic survey 2017-18

The Economic Survey 2017-18 noted key implications for agriculture sector. This sector has given
more than 50% working force and contributes about 17-18 % GDP of the country. Farm
mechanization adapted by Indian farmers is growing faster rate than the recent past years. The sale
of tractor cannot be taken as only measure of mechanization but it reflects also the great level of
mechanizations. The tractor industries of India has emerged as the third largest in the world as
production which is very encouraging for Indian agriculture sector. As estimated that the
percentage total work force of agricultural sector would drop to 25.7 per cent by 2050 from 58.2 per
cent in 2001 which will help in reducing cost of production due to minimum involvement of
workforce. The economic survey also expressed that Agricultural R&D is the main foundation of
innovation and it is needed to sustain growth of agricultural productivity in the long-term. As per
the survey, the actual expenditure of Department of Agricultural Research and Education\Indian
Council of Agricultural Research has increased from Rs- 5,393 crore in 2010-11 to Rs.6800 (BE)
crore during 2017-18. The expenditure of compound annual growth rate has been 4.2% over the
years and this has been on higher side in the recent year. Further, the economic survey says that  the
feminisation of agriculture sector is growing due to urban migration by men from rural which leads
in increasing of women involvement in cultivators, entrepreneurs and labourers Globally, there is
realistic evidence that women have a significant role in ensuring food security and preserving local
agro-biodiversity. Few measures pointed out by economic survey are
 To ensure mainstreaming of women in agriculture sector which includes earmarking at
least 30% of the budget allocation for women beneficiaries for all ongoing
schemes/programmes and development activities.
 To initiate women centric activities and ensuring benefits of various beneficiary-oriented
programs/schemes for easy approach of them
 To focus on women self-help group (SHG) to connect them to micro-credit through
capacity building activities which is to provide information and ensuring their
representation in different decision-making bodies.
Model scheme for Indian Agriculture and its role in the GDP and economic activity of
India:

Indian agriculture sector is under stress currently. The government needs to introduce adequate
reforms are for revival of agriculture sector. This sector is much needed attention as 52%
population of the country are looking forward to reforms in this sector. However, it has exhibited
a declining trend in its contribution to the GDP. The GDP growth of Indian economy is found
to have at 8.2% in Q1 of 2018-19 with a growth of agricultural sector estimated to be 5.3%.

The reasons for the low agriculture growth in terms of GVA contribution are

 Lack of knowledge about the use of important agricultural inputs like irrigation facilities,
quality seeds, fertilizers, machinery, farming technology and associated services.

 Only 34.5 % of total farming area is found to have irrigation facilities .So, very large
segment of the crop area has to depend on rainfall which is seasonal only.
 Only 9.4% farmers uses certified, hybrid, disease tolerant seeds.
Proposed model schemes

 Rebalance the policy package to raise sustainable productivity growth

 To strengthen the regulatory environment

governing land issues, reform market
regulations and market functioning across
states
 Supporting farmers to integrate in
competitive markets and allow the private  E-NAM
sector to play a greater role  Soil Health
 Encourage efficient and sustainable of Management
fertilisers  Pradhan Mantri
 Enlist all concerned groundwater and Krishi Sinchayee
Underway Yojana (PMKSY)
watershed management schemes  Mission for
 To strengthen the overall access to credit and
Integrated
particularly encourage long-term loans
Development of
 Infrastructure and Education in rural areas
Horticulture (MIDH)
 To increase sustainable productivity growth  Pradhan Mantri
and climate change adaptation and Fasal Bima Yojana
mitigation such as increase research (PMFBY
intensity and strengthen priority setting
processes ,reforming and refocus the
extension system on today’s challenges and
investing in digital connectivity in rural areas

 Strengthen the role of agriculture in enhancing food and nutrition security

 Rashtriya Krishi
 Enhancing the public distribution system. Vikas Yojana (RKVY
 Direct Benefit Transfers or food stamp – RAFTAAR
type mechanisms Underway
 National Food
 Involvement of the private sector to play a schemes
Security Mission
role in managing remaining stocking (NFSM
operations
 Improve agricultural institutions and governance systems

 To clarify roles and responsibilities at

central level by bringing key policy areas
under a single umbrella  Rashtriya Krishi
 To strengthen coordination among Underway Vikas Yojana (RKVY
central ministries and agencies and schemes – RAFTAAR)
between the centre and the states  Agricultural
 To prioritise institutional reforms to department of India
allow development of a single market for
agricultural products

 Make trade work for Indian agriculture

 To streamline and clarify trade policy

roles and responsibilities across the
different ministries and agencies
 To tariffs and relax the other restrictions Co
Agriculture ministry
on imports with a view to create a more -ordination
open and predictable import system

 Agriculture growth- its relation to the other sectors in the Indian economy:

Indian economy is mainly defined by three core sectors:

 Services: manufacturing, machinery & equipment, electricity, gas, water supply &
other utility services.
 Industry: Trade, Transport – Rail, Road, Water & Air, Storage, Financial services,
community, social & personal services,
 Agriculture: Foods, fibres, raw material for industries such as rubber ,bio fuels, and
raw materials (such as rubber), Cereals (grains), vegetables, fruits, edible
oils, meat, milk, fungi and eggs.
The important roles of agriculture in Indian economy are as follows
1. Contribution to national income.
2. Source of livelihood
3. Source of food supply
 4. Role agriculture for industry development
5. Commercial importance
6. Source of government revenue
7. Role of agriculture in economic planning

Impact of Agriculture on Industry:

1. Agriculture industry supplies raw materials such as sugarcane, jute cotton, oilseeds,
tea, spices, wheat, paddy etc. to consumer goods industries.
2. It supplies vegetables, cereals and other food items on regular basis to industrial
fodders and labourers for domestic animals in the dairy industry.
3. The income of farmer normally uses to same in the bank or other financial institution
which finally used by industry owners in the form of investment
4. It provides manpower to industries on regular basis.
5. It gives a market ready finished product for both consumer and capital good
industries.

Impact of Industry on Agriculture

1. To increase market of finished agricultural product, it is very essential to develop

infrastructure like road, railway, cold storage where industry play a vital role.
2. Industry regularly supplies scientific tool, equipment, harvester, pump sets for
fertilizer etc. which minimize cost of production and increase crops production.
3. It provides huge employment opportunities and absorbs all surplus labour in our
agriculture which leads industrial developments.
4. Agriculture sector itself has a huge market of the finished product of industries such
as farmer buys solar light, torch, bi-cycle ,radio etc.

So, Agriculture and industry sector is dependent to each other i.e. development of one sector
fully dependent of other sector’s performance and growth of others sector

Company Introduction: Numaligarh Refinery Limited (NRL) is a 3 MMTPA refinery

situated in Numaligarh, Assam.

 Products: Petrol, Diesel, Kerosene, Aviation Turbine Fuel, Mineral Turpentine Oil,
LPG, Naphtha, Coke, Paraffin wax and Sulphur.

The company has been found consistent on the basis of performance for last 5 years .The
establishment of NRL was from the Assam Accord .So, it has primary objective of
facilitating economic and industrial development in the region. The company contributed a
sum of Rs. 1360.92 crores for the FY 2017-18 as dividends to its stakeholders including the
Government of Assam. NRL’s Corporate Social Responsibility and Sustainability programs
are aimed at improving the socio-economic status of weaker section of the society. NRL
strongly believes that CSR plays a defining role in the development of the Nation and
Company’s CSR thrust areas are inspired from national development policies for
advancement of children, women and weaker sections. At least 60% of the CSR budgets are
lined towards rural development including all sectors. CSR expenditure in the financial year
2017-2018 was 46.24 Crore.

Role of NRL in the growth of agriculture

NRL is committed to take active participation for the overall development of Assam. During
the financial year 2017-18,our company has contributed an amount of `4,212.44 Crore to the
Central Exchequer and `459.45 Crore to the State Exchequers in the form of taxes, duties and
dividends .Also from the CSR activities , NRL has contributed the following models

 Farmers First: NRL provided assistance to farmers of nearby localities for traditional &
alternate farming by providing seeds, fertilizers, tractorization support etc. It also
promotes multiple cropping by financial support to increase agricultural income of nearby
area. Around 175 farmers got direct beneficial from this model. NRL spent 0.2025 Crore
on it.
 Ideation : This is a start-up activities which gives financial support about 10 crores
meeting the objective of the start-up ecosystem to adoptive an entrepreneurial culture
leveraging on innovation and ideas so that the organization can open the possibility of an
inorganic growth for it. This can also help start-up activities which have interest on agri-
business in the region.
 Infrastructure development: NRL has significantly contributed for infrastructure
development of nearby localities which includes irrigation, solar light, roads and rural
electrifications 16 nos of villages are provided electrification in 207-2018
 Uttron : This is a skill development initiative taken by NRL Training was imparted by
institutes like Food Craft Institute, Assam Agriculture University on the topic like
vermicomposting, organic farming ,dairy farming, horticulture etc. wherein 175 students
got benefited from this scheme in 2017-2018 with an expenditure of 2.13 Crore but this
included infrastructural development of school and colleges also.
Few schemes which are on discussion of NRL CSR committee are listed below
1. Soil- Water testing
2. Agriculture skilling of women
3. Irrigation Infrastructure development
4. Online Farmer support programme
5. Organic Village development
Conclusion: Indian economy is based on agricultural sector. So, it is necessary to adopt new
approved technologies and processes for rapid growth of agricultural sector .Moreover, the farmer
education on handling new process and technologist required first. Supply chain management and
marketing of the agricultural product is also to be improved which is not appreciable in current
scenario of India. Government should take initiative for more involvement of private sector in
agricultural market such as FPC (farmer Producer Company) model.