Agricultural GDP grows by 4% in the latest quarter completed

India’s farm growth recorded a massive growth of 4.5% in the quarter finishing in June 2022. The good winter-sown harvests and higher food prices are the chief contributors to this strong growth in the agricultural GDP. However, it cannot be denied that the quarter started on a favourable base. That is, the increase is more pronounced also because of the poor growth registered in the corresponding quarter of the previous year (2021-2022). On the other hand the whole GDP of the country grew by 13.5% during the April-June quarter of 2022-2023, which was below the par expectations formed based on the available data. The farm growth has been a form of silver lining with it clocking above 4% sequentially. Higher farm growth also indicates better incomes for farmers although the increased cultivation costs have taken a dig at their profit margins. Soumya Kanti Ghosh, the group chief economic advisor of SBI in her research note stated that “Urban demand is getting support from contact-intensive services while rural demand has not responded to robust agriculture output growth,”.