India's agricultural growth rate projected at 20% soon

India's agricultural growth rate is expected to rise to 20% in the next two years. This was announced by Union Minister Nitin Gadkari during a recent event. He noted the importance of making agriculture economically viable and creating more jobs. Currently, about 65% of India's population lives in rural areas, but they only contribute 12% to the country's overall growth. Gadkari emphasized that improving the rural economy is crucial for India to become a USD 5 trillion economy. The government is focusing on enhancing the irrigation sector and using advanced technology in agriculture to generate more jobs. He also mentioned ongoing projects for building green highways and improving port connectivity, which are part of a larger investment plan. A key challenge highlighted by Gadkari is the high logistics cost, which currently ranges from 14 to 16%. He aims to reduce this to around 9% through better roads and alternate fuels. He believes these improvements will also boost exports by 1.5%. Regarding the automobile sector, Gadkari noted significant growth since he took office in 2014. The sector has expanded from Rs 14 lakh crore to Rs 22 lakh crore. He predicts that, in five years, India will become the second-largest automobile market globally. On the topic of taxes on electric vehicles imposed by some states, Gadkari acknowledged that tax decisions are up to state governments. He reiterated the central government's support for promoting alternative biofuels. He concluded by stressing the need to prioritize productive expenditure that creates jobs over unproductive spending.