Agricultural sector saves the country's economy in the Corona crisis

Country's economy gets a big support due to rural demand 

AUG 29 (WTN) - As you know how much damage has been done to the country's economy due to the Coronavirus crisis. Indeed, the lockdown imposed to prevent the spread of the Coronavirus infection stalled the economic activity across the country, leading to large unemployment. Now, the working in the industry and the service sector remained closed, it has affected the business of traders, and many have lost jobs. Due to all these reasons, since the demand is reduced in the market, the business activities were negatively affected, as well as the GST collection of the government also decreased.

It is clear that the second and the third sector of the economy performed quite dismal due to the Corona crisis and the lockdown, and the activities of the mining, production, aviation, tourism, hotel, banking, and service sectors were the most affected during the lockdown. For this reason, the country's economy has reached such a critical state for the first time since the financial year 1979-80. However, due to the Corona crisis and the lockdown, the country's agricultural sector remained almost unaffected, and the needs of the country related to agriculture continued to be met.

In fact, according to a report by the India Ratings and Research, in the Corona crisis, only the agricultural sector could function to its full potential. In such a situation, in the financial year 2020-21, the agriculture sector is expected to grow at around 3.5 percent on an annual basis. However, the report said that rural demand could help bring the country's economy back on track. However, rural demand cannot be an alternative to urban demand.

For your information, let"s know that the contribution of the agriculture sector in the GDP of the country is about 17 percent. Now,  the agricultural sector has been virtually unaffected in the Corona crisis, the demand for rural areas may help increase market demand at its best, but it may not be an alternative to urban demand. This is the reason that the country's GDP growth rate is projected to fall by about 17.03 percent in the first quarter of the current financial year 2020-21.

According to the report, the lockdown has comparatively done little impact on the agricultural sector. In the last three seasons, Rabi 2019, Kharif 2019, and Rabi 2020 have seen good agricultural yields. At the same time, the sowing of Kharif 2020 has been better than the last year in most parts of the country due to pre-monsoon rains. At the same time, it can be estimated from the rain so far that despite the floods in many areas of the country, the kharif crop till 2020 will be good.

Anyway, while the industry and service sector have been facing difficulties in recovering from the adverse circumstances of the Corona crisis, the agricultural sector can provide considerable support to the country's economy. However, there is a considerable difference between rural demand and urban demand because a large part of rural demand is separated from the durable goods. But, bike and tractor sales figures in the month of June are quite encouraging. In such a way, since the industry and service sector are struggling at present, the agriculture sector remains the support of the country's economy.