At NITI Aayog meet, PM Modi sets up agri task force and asks States to boost growth

Each State must aim to at least double its economy if the country is to achieve the target of a $5 trillion economy by 2024, Prime Minister Narendra Modi told the Chief Ministers gathered for the NITI Aayog’s fifth Governing Council meeting on Saturday.

Responding to concerns from the States, he announced the setting up of a high-level task force on structural reforms in the farm sector, as well as a potential revision of disaster relief fund norms.

“The goal to make India a $5 trillion economy by 2024 is challenging, but can surely be achieved,” said Mr. Modi, according to an official statement. For this, the States should recognise their core competence and aim to increase their economy by 2 to 2.5 times, working towards raising GDP targets right from the district level, he said. He added that the common man’s purchasing power would increase as a result. He urged the States to focus on their potential to grow exports.

The meeting was attended by the Chief Ministers of all States barring four — Punjab, Himachal Pradesh and West Bengal, Telangana, according to NITI Aayog Vice-Chairman Rajiv Kumar.

To transform the agri-economy, Mr. Modi said the high-powered committee for agriculture reforms “would include some Chief Ministers and take a holistic approach to the subject.”

Speaking to journalists after the meeting, Mr. Kumar said the reforms would cover logistics and supply chains, produce marketing, food processing and value addition, and are likely to involve changes to the Essential Commodities Act, 1955 and the Agriculture Produce Marketing Act.

He mentioned Uttar Pradesh and Haryana as two of the States who wanted changes to allow more freedom in the movement of agricultural goods. The task force’s members, mandate and timeline would be detailed in a few days, he said, adding that its report would be expected in two to three months.

Drought relief and rainwater harvesting were top agenda items at the meeting, and a number of States raised concerns about disaster management norms. With large parts of the country reeling under drought and the summer monsoon forecast less than 100%, it was decided to review and revise the guidelines for National and State disaster response funds in consultation with the ministries of Home Affairs and Agriculture, said Mr. Kumar.

The Prime Minister emphasised that the battle against left wing extremism (LWE), now in a “decisive phase” was being fought on two levels: firmly dealing with the violence, even as development proceeds in a fast-paced and balanced manner in the aspirational districts.

“The geographical area of influence of LWE has shrunk and the number of perpetrators of violence has declined significantly,” said the statement, adding that Mr. Modi promised the Centre would continue to provide assistance to the states in order to completely eradicate this issue over the next ten years.

Speaking to journalists after the meeting, Mr. Kumar said the reforms would cover logistics and supply chains, produce marketing, food processing and value addition, and are likely to involve changes to the Essential Commodities Act, 1955 and the Agriculture Produce Marketing Act.

He mentioned Uttar Pradesh and Haryana as two of the States who wanted changes to allow more freedom in the movement of agricultural goods. The task force’s members, mandate and timeline would be detailed in a few days, he said, adding that its report would be expected in two to three months.

Drought relief and rainwater harvesting were top agenda items at the meeting, and a number of States raised concerns about disaster management norms. With large parts of the country reeling under drought and the summer monsoon forecast less than 100%, it was decided to review and revise the guidelines for National and State disaster response funds in consultation with the ministries of Home Affairs and Agriculture, said Mr. Kumar.

Left wing extremism

The Prime Minister emphasised that the battle against left wing extremism (LWE), now in a “decisive phase” was being fought on two levels: firmly dealing with the violence, even as development proceeds in a fast-paced and balanced manner in the aspirational districts.

“The geographical area of influence of LWE has shrunk and the number of perpetrators of violence has declined significantly,” said the statement, adding that Mr. Modi promised the Centre would continue to provide assistance to the states in order to completely eradicate this issue over the next ten years.