Page 395 - ES 2020-21_Volume-1-2 [28-01-21]

22 Economic Survey 2020-21 Volume 2

Sectoral Trends
1.26 The year also saw manufacturing sector’s resilience, rural demand cushioning overall
economic activity and structural consumption shifts in booming digital transactions. The
full impact of the pandemic on the Indian economy is still unravelling and the future
growth prospects would critically depend on sustenance of momentum of this recovery.
Agriculture is set to cushion the shock of the COVID-19 pandemic on the Indian economy
in 2020-21 with a growth of 3.4 per cent in both Q1 and Q2. It is the only sector that
has contributed positively to the overall Gross Value Added (GVA) in both Q1 and Q2
2020-21. This indicates that agricultural activities for rabi harvesting and kharif sowing
were largely unaffected by the COVID 19-induced lockdown. Given the expectation of
a bountiful kharif harvest, the food grain production target has been set at 301 million
tonnes for the 2020-21 crop year, up by 1.5 per cent from the record output achieved in
2019-20 (Figure 22). Sowing remained healthy while procurement continued unabated,
firming up buffers and channelizing supply, while ensuring food security throughout the
year (Figures 23).

Figure 22: Foodgrain Production in India Figure 23: Procurement of Rice and Wheat

Rice Wheat 51
50
44
40 34 38 38 36 34 35 39
Million Tonnes 30 28 23 31

20

10

0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: Ministry of Agriculture, Department of Food and Public Distribution
Note: Production figures for 2020-21 are estimates. Procurement of Rice is as on 15 January 2021.
The target for procurement of rice for 2020-21 is 495.37 lakh tonnes

1.27 Rural demand has remained resilient empowered by the government’s thrust on the rural
economy and infrastructure in previous years, through a bouquet of reforms for both farm
and non-farm sectors. There has been re-energised focus in the last six years on rural roads
by extension to smaller villages, rural housing and sanitation, provision of basic amenities
under various Government Schemes and creation of durable assets through MGNREGS.
These measures have been reinforced by rural digitalisation and financial inclusion drives
which also aided in smooth implementation of demand push measures during COVID-19.
Initiatives to spur skill development, entrepreneurship, Self Help Groups and livelihoods have
further empowered the rural economy to combat the COVID-19 induced vagaries. Critical
steps such as PM-KISAN, adoption of cost plus 50 per cent formula for MSP, focus on