BJP Factsheet: Agriculture Sector Growth Outpaces UPA's Instability
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Synopsis
In response to Congress's criticism, the BJP's factsheet presents evidence of stronger agricultural growth rates in recent years, highlighting the NDA's initiatives and budgetary support, contrasting the volatility experienced during the UPA's rule from 2004 to 2014.
Key Takeaways
- Strong agricultural growth rates under NDA
- Average annual increase of 5% from FY17 to FY23
- Farmers' income rose by 5.23% annually
- Over Rs 3.45 lakh crore disbursed via PM KISAN
- Significant reduction in urban-rural consumption gap
New Delhi, Feb 9 (NationPress) In response to the Congress Party's allegations regarding the performance of the agriculture sector, the BJP's factsheet emphasizes that the growth rate in recent years is significantly stronger and more stable, supported by enhanced government budget allocations, compared to the period from 2004 to 2014 under the UPA administration.
According to the factsheet, the UPA era from 2004 to 2014 represented a time of instability for Indian agriculture. The GDP growth of agriculture and related sectors was recorded at 5.1 percent in 2005-06, but it saw a decline of 0.1 percent in 2008-09, demonstrating the Congress's failures in agricultural management.
The BJP asserts, “Claims of stagnation in agriculture under the NDA are completely false. India's agriculture sector has shown robust growth in recent years, with an average annual increase of 5 percent from FY17 to FY23. Additionally, the agriculture sector achieved growth rates of 2 percent and 3.5 percent in the first and second quarters of 2024-25, respectively, indicating significant progress.
The factsheet further highlights that farmers' financial conditions are improving, with agricultural income rising by 5.23 percent annually over the past decade. Despite a temporary decline in employment rates during the pandemic, the NDA government has facilitated a strong recovery, with the unemployment rate currently at 3.2 percent, significantly lower than the pre-pandemic rate of 6 percent.
It also notes that while the Congress has let down farmers, the NDA has consistently ensured that the Minimum Support Price (MSP) is set at 1.5 times the average cost of production.
The transformative PM KISAN scheme has supported 11 crore farmers between 2019 and 2024, disbursing over Rs 3.45 lakh crore through Direct Benefit Transfer (DBT). Farmers' purchasing power has seen a remarkable increase in the last decade. Agricultural credit in India rose from Rs 7.3 lakh crore in 2013-14 to over Rs 25.48 lakh crore in 2023-24.
The NDA has expanded the Kisan Credit Card scheme to include farmers in the Animal Husbandry and Fisheries sectors since 2018-19, a step not taken by the UPA.
The National Agricultural Insurance Scheme (NAIS) and its modified versions under the UPA provided limited coverage with a modest allocation of Rs 2,151 crore in 2013-2014. In contrast, the PMFBY has a significantly larger budget and is far more inclusive. The NDA government allocated Rs 13,625 crore for PMFBY in 2023-24, six times more than what the Congress had set aside.
Moreover, the UPA had registered only 318 Farmer Producer Organizations (FPOs) until 2014. The NDA government launched a scheme in 2021 to promote the formation of 10,000 FPOs, with a budget of Rs 6,865 crore. As of August 2024, there are 8,875 FPOs in India, marking a substantial increase since the UPA era.
The factsheet also points out the reduction in the gap between urban and rural areas concerning consumption expenditure, reflecting enhanced living conditions.
The PM-KISAN scheme, initiated in 2018, provides Rs 6,000 annually to small and marginal farmers, benefiting over 11 crore individuals by 2024. A total of Rs 3.46 lakh crore has been disbursed through 18 installments. Over 85 percent of beneficiaries under this scheme are small and marginal farmers. The government's Aadhaar and DBT systems have streamlined the distribution process, significantly reducing corruption and delays.
Furthermore, upwards of Rs 34 lakh crore has been transferred via DBT to more than 1,167 crore beneficiaries, ensuring timely, transparent, and corruption-free distribution of welfare funds.
Nationwide, the urban-rural gap in Monthly Per Capita Consumption Expenditure (MPCE) has decreased from 84 percent in 2011-12 to 71 percent in 2022-23, and further to 70 percent in 2023-24. The estimated average MPCE in rural and urban India for 2023-24 is Rs 4,122 and Rs 6,996, respectively, not accounting for values of items received free through various social welfare initiatives.
