Indian President just took the lead ahead of the budget to announce a ₹25 trillion fund to save rural economy
- Ram Nath Kovind, the President of India, made a significant announcement as he inaugurated the new Parliament session.
- Government is set to invest ₹25 trillion to enhance agriculture productivity in coming years, ₹900 billion expenditure to be incurred annually in PMKSN.
- The announcement has come just a few days before the upcoming budget.
“ Large scale investments have been made to strengthen rural India. In order to enhance agriculture productivity, an investment of Rs. 25 lakh crore will be made in the coming years.”said President Ram Nath Kovind
It is also planning to spend ₹900 billion on its flagship scheme Pradhan Mantri Kisan Samman Nidhi (PMKSN), Kovind said on Thursday addressing the joint sitting of the parliament. An amount of ₹120 billion has already been disbursed to the farmers in three months through the scheme, he added.
The country is reeling under a sharp slowdown in the economy as well as a crippling water crisis, and both factors have had a more pronounced impact on the rural economy. The Modi government had set itself a goal to double farmers’ income by 2022 but reports suggest that the progress has much left to desire.
But, the President’s speech today may have be a sign for investors in India for what the upcoming budget on July 5 may have in store.
“To double the income of farmers by 2022, several steps have been taken in the last 5 years. Be it the decision to increase the minimum support price (MSP), or approval for 100 percent FDI in food processing; be it completion of the irrigation projects pending for decades or extension of Crop Insurance Scheme; be it the Soil Health Card or 100% Neem coating of urea.”said President Ram Nath Kovind
Kovind also prodded the government to set up a separate department for integrated development of fisheries and to create a special fund to usher in, what he called, a ‘Blue Revolution’.