The FM is clearly hoping that consumption-led growth will help her maintain not only fiscal prudence but will also make people happy by putting more cash in the hands of middle classes through the income tax limit enhancement under the new scheme. By incentivising the new income tax scheme, the government is expecting that the money will lead to increased consumption and resultant growth in tax collection.

The most significant intent is economic empowerment of women. It is evident that women in dairy sector have benefitted by controlling the value chain from input to production to processing, packing and marketing through dairy cooperatives. The rural women, who are members of 81 lakh self-help groups(SHGs) and involved in other activities, have not yet derived full benefits of the value addition. The easy way would be to federate the SHGs in companies, that can achieve economies of scale. Such companies can access credit for processing and undertake value addition for better realisation. However, professional and empowered management, that has long-term stability, will be needed for this to succeed. Such enterprises could be suppliers of organised retail chains. While the enterprise can become ‘Unicorns’, the constituent women will reap the benefits of economic empowerment.

From the perspective of the agriculture sector, the increase in the agricultural credit target by 11 per cent as compared to FY23, taking the figure to 20 lakh crore is a positive news , however, this needs to result in positive growth in gross value added for agriculture and increasing the share of agriculture in the GDP. Hopefully, the proposed digital public infrastructure and the agriculture accelerator will facilitate comprehensive solutions through support for agritech industry and start-ups. Dissemination of timely and relevant information to farmers about crop planning and condition, easy access to farm inputs, market intelligence and market linkages including sophisticated instruments like derivatives markets.

While accelerator got the eyeballs, the intent of decentralisation of warehousing capacity could turn out to be a game changer. Warehousing can play an important role in rationalising the balance between demand and supply. Besides reduction in wastage and resultant saving, decentralisation and standardisation of warehousing can control transaction costs as also save farmers from the vagaries of trade and nature. The decision to promote decentralised warehousing could have greater impact, if the government ensures that the WDRA regulation gets parliamentary approval in this year and RBI mandates banks to insist on warehouse receipt funding through eNWR route alone.

The budgetary thrust on millets was on expected lines. It will help improve farmers’ income by extending their market reach. Promotion of millets and market-based instruments like derivatives on exchanges will ensure remunerative prices for farmers and more farmers will be encouraged to grow millets in this International Year of Millets.

On the flip side, the hopes that the government will focus on increased budgetary allocation towards Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have not been fulfilled. It is a well known fact that a good quality cattle can add ₹100 per day to the farmers income, and any investment in cattle not only enhances economic security and well being but also ensures nutritional security. And therefore the meagre hike in allocations to two ministries that can add to rural prosperity and add to employment generation in rural areas viz. DAHD @ about ₹400 crore and Food processing at about ₹300 crore, ministries show that the budget has not really strengthened the initiatives for improving non-farm incomes in rural areas. The lack of fund allocation to DAHD is more surprising when one sees that ₹10,000 crore is being allocated under Gobardhan scheme and focus on organic and biogas.

The author is CEO and MD, NCDEX