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SYNOPSIS
India’s Rabi crops, including wheat and mustard, play a crucial role in economic growth by boosting farm production, rural income, and employment. A strong harvest enhances food security, stabilizes inflation, supports exports, and drives GDP expansion, with projected 2025-26 growth at 6.7%.
The Indian economy is inescapably entwined with agriculture that generates 18-20% of the country's GDP. The Rabi season in particular is highly important, with wheat, mustard, barley, and gram being high food security and rural income-generating and economic growth crops. A successful crop of Rabi contributes to aggregate food output, price stability, and farmer returns. Greater returns increase rural demand, translating into higher demand for goods and services. Spillover effects have ripple effects in the manufacturing and retail industries, thus contributing to the GDP.
Seeding of the Rabi crop for the current year has been strong, with the farmers planting 661.03 lakh hectares, up by 1.5% from last year's 651.42 lakh hectares. Increased production also benefits the government through increased tax realizations from agricultural trade and exports. India is among the top exporting countries of wheat, and healthy production generates foreign exchange resources. Surplus domestic production reduces reliance on imports, and thus the balance of trade and the economy itself are enhanced.
Employment is the second most important issue. Farming employs nearly half of working-age India, and a healthy Rabi season generates increased revenue for farmers and farm workers. With an increase in the money supply, rural economies are provided with more funds to invest in health care, education, and improved lifestyles with long-term economic benefit. Increased rural demand also benefits consumer durables, textiles, and automobile industries, creating prosperity for the economy.
Another important advantage is controlling inflation. With abundant food production, food prices are strong and hence shield consumers' purchasing power from the pull of inflation. Stable and low inflation guarantees stable demand for goods and services and hence maintains economic momentum in equilibrium.
Government policies also boost Rabi crop production. MSP, subsidy on fertilizer, and irrigation facility prompt farmers to practice efficient agriculture. More efficient agriculture, encouraged by the government, enhances efficiency and productivity and, therefore, helps to enhance the contribution of Rabi crops to the GDP in the long term.
Generally, Rabi crop farming has a pivotal position in the Indian GDP since it is engaged in food security, rural economy and employment generation, price stability, and exports. Besides generating income for the farmers, it also creates economic activity in the industries, thereby building economic power and national development. The agricultural sector continues to play a pivotal role in propelling overall economic development and stability in the long term.
Maintaining these in view, India's real GDP growth during 2025-26 would be 6.7%, Q1 = 6.7%, Q2 = 7.0%, and Q3 and Q4 both are 6.5%. The improved Rabi season highlights the importance of agriculture to support economic growth and a healthy and robust economy in the future.
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