All eyes on Indra and Gram Devta
The Finance Ministry, in its Monthly Economic Report for July 2020, expressed guarded optimism about the economic recovery. “India is well on the path to a recovery from a trough in April, ably supported by proactive government and central bank policies. However, the increase in Covid-19 cases and subsequent intermittent lockdowns make the recovery prospects fragile and call for constant and dynamic monitoring”, the report said. Relying on the IMD forecast of above average monsoon, the ministry expects agriculture to cushion the shock of COVID pandemic on the Indian economy in 2020-21. It is pertinent to note that agriculture contributes about 15 per cent of total gross value added. As per the ministry's estimates, a record procurement of wheat for Rabi season 2019-20 has enabled a flow of around Rs. 75,000 crore to the farmers which will boost private consumption in rural areas. Incraesed flow of funds due to higher crop, better MSP, a slew of agriculture sector refomrs, and m...