India's Agri Growth Slows to 4% Target

India's agricultural sector growth is projected to slow to approximately 4% in the 2025-26 financial year, a decrease from the 4.6% growth recorded in the previous fiscal year. According to Niti Aayog member Ramesh Chand, this fluctuation is influenced by various factors, including the base effect. He emphasized that the nation must attain a consistent 5% agricultural growth to support its ambition of becoming a developed economy.

Chand also pointed out the growing domestic food demand, which is only increasing at 2.5% annually due to slower population growth. This necessitates strategic planning for surplus production, either through enhanced exports or by developing alternative uses such as biofuels. He suggested India could benefit from adopting China's intensive farming practices, particularly regarding fertilizer use, while mitigating environmental impacts.

Key growth drivers identified include increasing crop intensity, expanding irrigation facilities, and reducing yield disparities between different states. Addressing the issue of counterfeit agricultural inputs was also stressed as vital for farmer welfare and productivity. Furthermore, advocating for direct deficiency payments over traditional procurement for minimum support prices could help maintain market price stability and export competitiveness.