Lok Sabha Question No. 4775 (UNSTARRED), answered on 2020-03-23
Subject: Consumption in Rural India
Ministry: FINANCE
Asked by: Kaushalendra Kumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 4775 TO BE ANSWERED ON 23 MARCH, 2020

## CONSUMPTION IN RURAL INDIA

## 4775. SHRI KAUSHALENDRA KUMAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware about Market Researcher reports that consumption in rural India has shown a slowdown during the last one quarter and if so, the reaction of the Government in this regard;
- (b) whether it is a fact that slowdown in rural India is due to farm distress and stagnant incomes erode demand as per data given by Researcher and if so, the details thereof;
- (c) whether it is also a fact that rural economy has been plagued by falling crop prices and declining incomes, resulting in a severe slump in demand;
- (d) if so, whether this is not an alarming situation and needs to be taken care by the Government; and
- (e) if so, the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a), (b) & (c) No such report has come to the notice of the Government.

(d) & (e) Agriculture being a State subject, the State Governments take appropriate measures for development of agriculture in the State. However, Government of India supplements the efforts of States through appropriate policy  measures  and  budgetary  support.  The  Government  of  India  supplements  the  efforts  of  the  State Governments  through  various  schemes/  programmes  such  as  Pradhan  Mantri  Krishi  Sinchayee  Yojana,  Soil Health  Card  Scheme;  National  Agriculture  Market  Scheme  (e-NAM),  Pradhan  Mantri  Fasal  Bima  Yojana, National  Food  Security  Mission,  Pradhan  Mantri  Annadata  Aay  Sanrakshan  Abhiyan),  Mission  for  Integrated Development of Horticulture, and Rashtriya Krishi Vikas Yojana etc. Further, there is a substantial increase in allocation  for  agriculture  and  allied  activities,  irrigation  and  rural  development  to  about  Rs . 2,83,202  crore  in 2020-21(Budget Estimates) from Rs . 2,49,910 crore in 2019-20 (Revised Estimates).

In  addition,  Government has  already  been  implementing  various measures  to  boost  rural  spending  and  rural demand  which  includes  the  cash  transfer  scheme-  Pradhan  Mantri  Kisan  Samman  Nidhi  which  provides  an income support of Rs. 6000 per year to farmers and Pradhan Mantri Kisan Maan-Dhan Yojana for providing old age minimum fixed pension to the eligible small and marginal farmers on attaining the age of 60 years. Several programmes/schemes which inter-alia, includes Mahatma Gandhi National Rural Employment Guarantee Act, Deendayal  Antyodaya  Yojana-National  Rural  Livelihoods  Mission,  Deen  Dayal  Upadhyay-Gramin  Kaushal Yojana, National Social Assistance Programme, Pradhan Mantri Awaas Yojana- Gramin, Pradhan Mantri Gram Sadak Yojana, Swachh Bharat Mission-Gramin, Sansad Adarsh Gram Yojana and Shyama Prasad Mukherjee National RuRBAN Mission etc. have also been under implementation. These schemes/programmes are meant for the welfare of farmers by increasing production, remunerative returns and income support to farmers as well as also helping in uplift the standard of living of the rural households of the country.