Lok Sabha Question No. 3101 (UNSTARRED), answered on 2015-08-07
Subject: Integrated Economy
Ministry: FINANCE
Asked by: NALIN KUMAR KATEEL

- (a) the manner in which economic integration of India would be achieved;

(b) the funds allocated to industrial and agriculture sectors during the last three years and the current year, sector-wise;

(c) whether there is huge imbalance in the development of industrial and agriculture sectors in the country;

- (d) if so, the details thereof; and

(e) the steps taken by the Government to ensure the balanced progress of both the sectors?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) The integration of the Indian economy can be considered in terms of its integration with the rest  of  the  world,  and/or,  the  integration  among  different  sectors/segments  of  the  economy. With the progressive opening up of the economy, India is becoming more integrated with the rest  of  the  world.  Considering  the  dynamic  inter-linkages  between  sectors,  the  Government has been striving to achieve balance between different sectors of the economy with various initiatives  that, inter  alia ,  include:  Pradhan  Mantri  Jan  Dhan  Yojana,  which  can  mobilize grassroots  level  savings  and  intermediate  them  for  investment  purposes;  the  roll-out  of  the National Policy for Skill Development and Entrepreneurship, 2015 (as a part of SKILL INDIA) with focus on promoting industry engagement, quality assurance and leveraging of technology on the one hand, and, stress on providing skilling  opportunities for  the marginalized  groups and  women,  on  the  other;  and,  importance  given  to  agro-based  industries,  which  will strengthen linkages between agriculture and industry, among others.

(b) The funds allocated (actuals/revised estimates/budget estimates) in the Union Budgets for agriculture and industry & minerals sectors for the last three years and the current year are as under:

| Funds Allocated for Agriculture and Industry Sectors (Rs. in crore)   | Funds Allocated for Agriculture and Industry Sectors (Rs. in crore)   | Funds Allocated for Agriculture and Industry Sectors (Rs. in crore)   | Funds Allocated for Agriculture and Industry Sectors (Rs. in crore)   | Funds Allocated for Agriculture and Industry Sectors (Rs. in crore)   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| Sector                                                                | Actuals (2012-13)                                                     | Actuals (2013-14)                                                     | Revised 2014-15                                                       | Budget 2015-16                                                        |
| Agriculture Sector                                                    | 19802                                                                 | 19938                                                                 | 12009                                                                 | 13977                                                                 |
| Industry & Minerals                                                   | 13942                                                                 | 14347                                                                 | 13651                                                                 | 15100                                                                 |

(c) & (d) The share of agriculture & allied sectors in the Gross Value Added at current basic prices declined from 18.0 per cent in 2012-13 to 17.0 per cent in 2014-15. Simultaneously, the share of industrial sector also declined from 31.9 per cent to 30.0 per cent during the period. A gradual decline in the share of agriculture in Gross Domestic Product is generally experienced in the process of development.

(e)  The  Government  has  taken  various  steps  to  improve  growth  in  the  agriculture  sector, including, initiatives on micro irrigation, watershed development, soil conservation and credit.

Some specific  initiatives  include;  the  Soil  Health  Card  Scheme  to  improve  soil  fertility  on  a sustainable basis; support to organic farming scheme - 'Paramparagat Krishi Vikas Yojana'; and,  the  Pradhan  Mantri  Krishi  Sinchayee  Yojana.  In  order  to  minimize  the  impact  of delayed/deficient rainfall and long dry spells, the Indian Council of Agricultural Research has prepared  contingency  plans  for  more  than  six  hundred  districts.  To  minimize  the  adverse impact of climate change, the Government has taken important initiative in the form of National Mission  on  Sustainable  Agriculture.  The  Government,  at  the  same  time,  has  taken  various initiatives to improve the growth rate of the industrial sector which, inter alia ,  include; fillip  to manufacturing through fiscal incentives and concrete measures for transport, power, and other urban  and  rural  infrastructure;  liberalization  of  foreign  direct  investment  in  selected  sectors; Skill  India  and  Digital  India  initiatives;  measures  to  de-bottleneck  the  supply  of  key  rawmaterials like coal; 'Make in India' initiative with the attendant facilitatory measures for a more conducive environment for investment; and various measures for small and medium industries.

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