There is good news for Indian farmers. The Reserve Bank of India (RBI) has given good news to farmers across the country. In its April bulletin, the RBI has said that the condition of the agriculture sector is expected to be better due to the forecast of a better than normal monsoon this year. This can increase agricultural income. That is, the income of farmers will increase. It can also help in controlling food prices.
As per the report, amid global uncertainties, domestic engines of growth such as consumption and investment remain strong and are relatively less affected by external adverse conditions. It said, Prudent policy support can help India turn global instability into an opportunity and strengthen its position in the emerging world economic scenario.
The bulletin also mentioned that the increase in trade and tariff pressures and the resulting volatility in financial markets have raised concerns about a global economic slowdown in the near future. It said, “Although India’s economic growth may be affected by a slowdown in global demand, the major engines of growth, such as domestic consumption and investment, are still strong and are relatively less affected by external challenges.” Along with this, the forecast of a better-than-normal southwest monsoon this year has brightened the prospects of the agriculture sector. This can increase farm income and help control food inflation.
According to the bulletin, India is now poised to benefit by strengthening trade relations with various countries, improving supply chains, diversifying sources of foreign direct investment (FDI), and better engaging with global investors. However, the Reserve Bank has clarified that the views expressed in the bulletin are personal to the authors and are not the official views of the Reserve Bank of India.