Key Points
New Delhi: The effect of weather shocks on Indian agriculture is becoming less and less" because irrigation now covers more farmland, while livestock and fisheries occupy a bigger space in the rural economy, NITI Aayog member Prof Ramesh Chand said..
In an interview, Chand also said a faster post-covid bounce-back in the urban economy gives the impression that rural incomes and consumption are lagging behind, arguing that one should not read too much into perceived rural weaknesses..
Chands remarks about the resilience" of rural India follow warnings of summer temperatures soaring 2-3 degree celsius higher than normal and El Nino effects disrupting rainfall..
If rural prices last year were lower than they were in urban areas and this year even if rural and urban prices are the same, you will find higher inflation in rural areas..
So when non-agricultural economy recovered from covid and grew much faster than agriculture, it is going to have a stronger effect in urban areas than in rural areas in terms of purchases and consumption..
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