The government will give more incentives to the agriculture sector for increasing both farm production and productivity, finance minister Arun Jaitley said on Friday in a pre-Budget meeting with the consultative committee of Parliament attached to the ministry.
The agriculture growth in the last two years has suffered mainly due to insufficient monsoons. The gross value addition in the agriculture and allied sectors declined by 0.2% in FY15 after clocking a growth of 4.2% in FY14. Helped by better performance in livestock products, forestry and fisheries, it grew by 2% in the first half of FY16, but downside risks continue due to deficient rainfall. In January, the government announced a comprehensive crop insurance policy to compensate farmers for losses due to natural calamity.
During the meeting with the Parliamentary committee, Jaitley also reiterated that FY16 fiscal deficit target of 3.9% of GDP would be met.