Lok Sabha Question No. 4539 (UNSTARRED), answered on 2016-08-12
Subject: Rural Income
Ministry: FINANCE
Asked by: DEEPENDER SINGH HOODA

- (a)  whether the rural income has contracted considerably leading to decreased rural demand/consumption during the last three years;
- (b)  if  so,  the  measures  the  Government  has  taken  to  boost  rural  demand  and  the  results  obtained  as  a  result thereof; and
- (c)  the trend of the annual agricultural income in the last five financial years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a): The Central Statistics Office (CSO) does not estimate rural income every year. The latest year for which the net value added (NVA) has been estimated separately for the rural and urban areas is 2011-12. The NVA for the rural  areas  in  the  year  2011-12  was  estimated  to  be  Rs.  34,08,936  crore.  The  gross  value  added  (GVA)  in agriculture and allied sectors, including forestry, fishing and livestock, which accounts for a significant proportion of  rural  income,  increased  by  Rs.  79646  crore  at  constant  (2011-12)  prices  from  2012-13  to  2015-16.  This, coupled  with  Government's  focus  on  rural  skills,  employment  and  infrastructure,  is  likely  to  have  helped  rural demand and rural consumption.
- (b):  The  Government  is  implementing  several  programmes  that  aim  to  boost  rural  income,  demand  and consumption through: creation of employment opportunities; strengthening of livelihood opportunities; creation of rural  infrastructure;  provision  of  other  basic  amenities;  etc.  These  programmes, inter  alia ,  include:  Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) for wage employment, Deen Dayal Antayodaya Yojana for rural livelihoods, Pradhan Mantri Awaas Yojna (Grameen) for rural housing, National Social Assistance Programme for enhancing the incomes of rural poor and Pradhan Mantri Gram Sadak Yojana for rural roads. The Budget 2016-17 prioritised the rural sector with emphasis on rural employment, electrification and connectivity. Apart  from  the  above,  the  focus  of  the  Government  on  agricultural  sector  with  programmes  for  irrigation, insurance, soil health, market, credit and farm infrastructure is likely to have helped rural incomes and demand. Despite the second successive year of unfavourable monsoon, the gross value added in agriculture and allied sectors increased by 4.9 per cent in current prices and 1.2 per cent in constant (2011-12) prices in the year 201516.
- (c): The Gross Value Added (GVA) at basic prices from agriculture and allied sectors, including forestry, fishing and livestock since 2011-12 is given in the following table:

| GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   | GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   | GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   | GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   | GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   | GVA at basic prices from agriculture and allied sectors (Rs. in Crore)   |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                          | 2011-12 *                                                                | 2012-13 *                                                                | 2013-14 *                                                                | 2014-15 @                                                                | 2015-16 #                                                                |
| At Constant (2011-12) Prices                                             | 1,501,816                                                                | 1,524,398                                                                | 1,588,237                                                                | 1,584,293                                                                | 1,604,044                                                                |
| At Current Prices                                                        | 1,501,816                                                                | 1,680,797                                                                | 1,902,452                                                                | 1,995,251                                                                | 2,093,081                                                                |
| Source: Central Statistics Office.                                       | 2 nd Revised estimates.                                                  | @1 st                                                                    | Revised estimates.                                                       | # Provisional estimates.                                                 | # Provisional estimates.                                                 |