India’s agricultural growth is expected to rise by 20% in the next two years, according to Union Minister Nitin Gadkari. He highlighted that the government’s top priority is to make agriculture more economically viable and create more job opportunities for people in the sector. Speaking at a Business Today event on Saturday, Gadkari pointed out that although 65% of India’s population lives in rural areas, they contribute only 12% to the country’s economic growth. For India to become a $5 trillion economy and achieve the third spot in the global rankings, it is crucial to focus on improving the rural economy and agriculture.
The Minister for Road Transport and Highways (MoRTH) also mentioned that the government is working on improving irrigation systems and building better roads to support agriculture. He highlighted that 36 green highways are currently under construction, and projects worth Rs 3 lakh crore are being undertaken to improve port connectivity. Despite these developments, Gadkari pointed out the major challenge facing the Indian economy: high logistics costs, which currently stand at 14-16% of the total costs. He emphasized the need to bring this figure down to 9%, which will help reduce overall costs and improve efficiency.
To achieve this reduction in logistics costs, Gadkari stressed the importance of good roads and the use of alternate fuels, which would not only reduce costs but also increase exports by about 1.5%. He also noted that the real issue lies not in resources but in managing expenditures effectively. Gadkari expressed confidence that India can compete with China in terms of economic growth, particularly by improving the country’s infrastructure.
Additionally, the Minister spoke about the significant growth of India’s automobile sector. When he became the Minister in 2014, the sector was worth Rs 14 lakh crore. Today, it has grown to Rs 22 lakh crore, and Gadkari predicts that in the next five years, India’s automobile industry will become the second largest in the world.
Overall, Gadkari’s remarks underline the importance of improving infrastructure, reducing logistics costs, and focusing on the rural economy and agriculture to boost India’s growth and move closer to its goal of becoming a $5 trillion economy.
Leave a Reply