Page Index


Irrigation sector:

Only 45% of the cropped area is irrigated leading to excess dependence on rains. PM Krishi sinchayi yojana aims to bring 28 lakh hectares under irrigation and the proposal to re-invigorate 89 defunct projects under Accelerated irrigation benefits program to bring an additional 81 lakh hectares under irrigation.

Credit and Insurance:

The share of agriculture credit to agriculture GDP has increased but the share of long term credit has declined to 39%. A revamped insurance program PM Fasal Bima Yojana was launched that provides relief from crop failure by paying a low premium of 2%for foodgrains and oilseeds and 5% for horticultural crops and cotton. DBT scheme for fertilizer subsidy to bank accounts has also been proposed.

Procurement, distribution and marketing:

Aim of this is to encourage states to have online procurement and use a transparent manner. A buffer stock of pulses shall be built under this. The Fair price shops shall be automated under this scheme and target is 3 lakh FPS out of current 5 lakh FPS. National Agriculture market shall be set up under Agriculture Technology infrastructure fund but this needs support of states too as they will have to amend their APMC acts.

Post harvest losses lead to 22% of all fruits getting spoiled and this is a major wastage. The decision to allow 100% FDI in marketing and distribution of food products produced in India is a step in the right direction but so far hasn't seen any entrants.


Water, Rail and Road transport are the focus of the government in that order. This has been done to minimize environmental damage due to this. The high amount allocated to road sector development is a sign of this. Agencies like National Highways Authority of India and National Rural roads development agency are geared up to utilize this allocation effectively. But the Inland waterways Authority of India isn't ready for this and its allocation has been reduced. Ambitious Sagarmala project of Water transportation is an example of this as the institutional capability is lacking for proper execution.

Problem plaguing this sector are:

  • Public private partnership model for waterways and railways isn't attracting interest.

  • Land acquisition and environmental clearances are a problem.

  • Effective and speedy dispute resolution is a problem and the Public Utilities (Resolution for dispute) Bill is pending.

  • Infrastructure projects have a long gestation period and high finance requirements which banks can't fulfill.

  • Lack of research and development in infrastructure management project structuring, risk assessment and management, social cost benefit analysis, financial viability assessment, bid documents preparation, tendering and bidding processes, concession agreements, financial engineering, regulatory issues, and mergers and acquisitions.

  • Rail development Authority is needed to separate policy making and execution.

Nayak Committee Recommendations of Review Governance of Boards of Banks in India

  • Remove the Banking Nationalization Acts and other Acts that mandate government holdings to be above 51%.

  • All banks should be under the Companies Act. A Bank Investment Company should be made as a holding company for banks and the government shareholding should be transferred to it.

  • Government should stop issuing regulatory instructions to PSU Banks and force them to take decisions based on development consideration.

  • Reduce government stake to below 51%.

  • Facilitate entry of young professionals into bank management.

  • Bank Boards Bureau to appoint whole time directors.


  • Ek Bharat Shreshtha Bharat - Link states and districts through an annual program that connects people.

  • John Keynes in his book "General Theory of Employment, Interest and Money" advocated deficit financing [expenditure more than income] and lower interest rates for recessionary times to stimulate growth.

  • Maastricht treaty was signed in Netherlands in 1992 by European nations to form European Union and have a common currency - Euro.

  • Fiscal Responsibility and Budget management Act, 2003 was passed to reduce fiscal deficit to 3% of GDP and revenue deficit to 0% by 2008. Government was mandated to present the below policies along with the budget.

                    i) Medium term fiscal policy statement
                   ii) Fiscal policy strategy statement and
                  iii) Macroeconomic framework statement.

  • Gyan Sangam: Annual retreat of bank chiefs, RBI top brass and Finance ministry chiefs.

  • Price stabilization fund: Dept of commerce set it in 2003. The government and the grower have to contribute to it. But withdrawal is permitted to grower only during distress years. The Buffer stock of pulses would be created by procuring pulses at MSP.

  • Clean Environment cess - Levied on coal, lignite, peat.

  • Mahila e-Haat: Online marketing platform for women entrepreneurs to display their products.

  • India adopted ‘Gender-Responsive Budgeting’ (GRB) in 2005. GRB is a method of planning, programming and budgeting that helps advance gender equality and women is rights. It also serves as an indicator

  • Budget theme - Transform India

  • Ujjwala - Provide LPG connections to BPL women.

  • PAHAL - DBT scheme for transferring LPG subsidy.

  • Setu Bharatam - Remove all railway crossings on national highways by building over bridges or under passes.