Moody''s expressed concern that a poor monsoon may dent India''s economic recovery. Thus a decline in agricultural output and a consequential fall in farm income may not just limit rural spending but widen the gap in wealth between rural and urban India, damaging its social fabric. India''s rural population accounts for a large share of total consumption hence, a generous slowdown in rural spending will limit overall consumption growth.
However, although the farm sector accounts for about 18% of the country''s gross domestic product, farm incomes is a key to the survival of about two-thirds of its population.
Moreover, a considerable fall in this year''s food grain output may activate a price rise, adding that the Reserve Bank''s upward revision of inflation risk to 5% for 2009-10 from 4% earlier is an indicator of the tough times to come.
Not only this, the farming cycle during the Rabi may be affected, raising apprehensions about a dip in output in the immediate following season as well, if the lack of improvement in rainfall stretches into August.
However, the research major feels urgent upgrading in farm technology; better irrigation facilities and major drive to overall agricultural infrastructure hold the key to sustainable food security in the country.
However, although the farm sector accounts for about 18% of the country''s gross domestic product, farm incomes is a key to the survival of about two-thirds of its population.
Moreover, a considerable fall in this year''s food grain output may activate a price rise, adding that the Reserve Bank''s upward revision of inflation risk to 5% for 2009-10 from 4% earlier is an indicator of the tough times to come.
Not only this, the farming cycle during the Rabi may be affected, raising apprehensions about a dip in output in the immediate following season as well, if the lack of improvement in rainfall stretches into August.
However, the research major feels urgent upgrading in farm technology; better irrigation facilities and major drive to overall agricultural infrastructure hold the key to sustainable food security in the country.
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