Food security is as important as national security, says Arun Firodia

Venkatachari Jagannath
01 March 2007

Chennai: Amongst the various pre-budget expectations from the business community the one from Kinetic Motor Group chairman Arun Firodia was unique. Unlike the usual carping, Firodia wanted a budget with a stronger emphasis on the traditional mainstay of rural India, or Bharat, and not one that bypasses it. (See: )

"The economy of rural India is languishing, with over 25,000 farmers having committed suicide since 1997, a decline in consumption for the 600 million people who make up 80 per cent of the bottom of Bharat''s population, decline in their food intake causing malnutrition and poor health. India cannot dream of marching forward leaving Bharat behind."

His one line summation of the budget is chilling," Urban India can look forward to another good year. But what about rural Bharat?"

Coinciding with last year''s Union Budget, in a bylined article in domain-b, Firodia had argued for a budget that generated sustainable employment for the rural poor and an integrated focus on agribusiness.(See: )

According to him since Bharat contributes 25 per cent to our gross domestic product (GDP), at least 25 per cent of our budget should be spent in Bharat as against 5 per cent spent now.

He also wanted the finance minister to make Bharat into a giant special economic zone. "The government should give interest subsidy to encourage banks to give loans to agribusiness at a low rate and with a moratorium; exempt rural area units from income tax, excise duty, value added tax and labour laws. The government should act as an "insurer of last resort" to encourage insurance companies to insure all types of crops against failure due to whatever reason."