Budget 2021: Finance Commission may recommend special incentives for agricultural exports

The 15th Finance Commission is expected to recommend special incentives for states performing "exceedingly well" in agricultural exports, with an aim to push the sector to $60 billion by 2022.

The FC may include a section in its performance-linked incentive (PLI) segment on providing special grants to states that perform well on agricultural exports. The measure was among the six indicators – agricultural reforms, development of aspirational districts, education, enhanced trade, power sector reforms and promotion of tourism – which were part of the FC's interim report submitted last year, the report noted.

For the suggestions related to the PLI for agricultural exports, the FC formed a high-powered panel comprised of academicians, bureaucrats and senior industry executives which "identified crop value chains and listed more than 340 commodities that need to be developed" to accelerate India's agricultural exports from $40 billion to over $70 billion over the next years, it added.

The move is aimed at creating seven to 10 million jobs from investment of about $8-10 billion generated in sectors such as infrastructure. India's agricultural exports have fluctuated around $40 billion in the last few years, against $43 billion in 2013-14 and much below the $60 billion goal.