1. Farm Sector Growth in India
Just like the previous quarter, the farms sector again strikes a growth of 3.4% in GVA at constant prices in Q2’FY21. In Q1’FY21 farm sector was the only one to strike the growth as the COVID-19 induced lockdown pushed the performance of all other sectors downward.
GVA or Gross Value Added is a measure of total output and income in the economy.
According to the first advanced estimates of the Department of Agriculture, Cooperation and Farmers Welfare, the overall food-grains production will reach to 144.52 million tonnes by the end of FY21 which is 0.8% greater than FY20. Among all the foodgrains, the production of rice and pulses will be increased by 0.37% and 20.6% respectively between FY20 to FY21.
2. Investment in Green Energy Sector in India
India is the 4th largest country for the renewable energy generation. The country’s green energy sector consists of solar, wind, bio-power, and small and large hydropower. The overall green energy capacity of India expects to be 220 GW by 2022 and 450 GW by 2030.
This sector has attracted investments of $64 billion in the last 6 years. Recently, the Union Cabinet has recently approved around $60 Million PLI or Production Linked Incentive scheme for ‘High Efficiency Solar PV Modules’ for boosting the domestic manufacturers and reduce the import dependence.
India’s rank in Ease of Doing Business has also improved to 63 in 2019 on introduction of simplified regulations. This is expected to attact investors in the sector.
3. Growth of Digital Transactions in India
The COVID-19 pandemic has accelerated the move towards digital payments at a pace which could not predicted before its outbreak. The pandemic has increased the urgency of modernising the payment system.
According to a latest report, globally, nearly 420 billion transactions worth $7 trillion are expected to shift from cash to cards and digital payments by 2023 and increase to $48 trillion by 2030.
Currently, the pandemic has changed the way consumers pay for their products. Moreover, banks are investmenting in new payments systems which are focused primarily on meeting compliance deadlines. Moving forward these systems will change consumer dynamic and improve the customer experience.