A recent press report said that RBI is taking measures to control inflation but it is important to concentrate more on the supply side. It also said that it’s time to innovate new ideas to overcome the inflation because the agriculture investment has been reduced from 4.37 per cent to 1.83 per cent and also three per cent of GDP, remains unutilized.
According to the experts’ point of view, investment in the rural infrastructure, harnessing organic farming, improving soil quality, research and development will help in the enhancement of the Banks credit. They have also suggested that giving proper guidance to Farmers will help in increasing the food production which will in turn increases the supply. The following ten years has been declared as “Decade of Innovation” for India.
Reports said that the other measures to be taken include checking of dams built by Bhanjibhai Mathukiya a farmer in Gujarat, which is useful during the Drought conditions. The cost for constructing the dam is Rs 10,000 which is very less when compared with the actual Rs. 1, 00,000. Therefore innovations in the agriculture field is likely to help in increasing the production
Reports also suggested that in order to control inflation and maintain the long-term economic growth, India has to encourage the creativity of the large number of its farmers and entrepreneurs in rural areas to increase the Production. There are lots of banks and NBFCs involved in offering agricultural loan and business loans to entrepreneurs particularly in the rural areas.