Agriculture sector needs blend of subsidy and investments to make it sustaining and self-sufficient: Finance Minister Arun Jaitley

Last Updated: Tue, Sep 18, 2018 15:32 hrs
Arun Jaitley (Image Courtesy: PTI)

Finance Minister Arun Jaitley on Tuesday batted for blending subsidy with investments to make agriculture a sustainable and self-sufficient sector.

The Finance Minister was at an event in the National Capital to release a book titled 'Supporting Indian Farms the Smart Way'.

"There is lot of formalisation of economy taking place in several other sectors... We can see visible results, and it is leading to additional resources in the hands of the government. I don't think this process will now be reversed," he said.

As India moves into the situation where governments have more resources, the ability to spend on sectors, which needs maximum support, will obviously rise, he added.

"As resources grow, the capital and development expenditure will increase. Hopefully, the resource crunch to spend in these areas will not be there. This has encouraged us...the government year after year has taken conditional steps in order to make investments in agriculture in terms of subsidy support, price support, crop insurance support or the interest subvention support.

"I do see a point on blending the subsidy support with the investment because, to have a model which sustains indefinitely only on subsidy will not be a sustainable model. Investments will make farm sector self-sufficient on ground. With much lesser subsidies a self-sufficient farmer may be able to serve the cause of Indian agriculture much better," he said.

"We have now acquired position when we are growing much faster than the rest of the world and hopefully there are various avenues of further generating this growth. There are regions in the country that have not grown well in the past therefore there is lot of potential for growth," he said.

Observing that public discourse occasionally gets impacted by populism, he said, good politics has to be blended with sound and rational policy.

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