CHENNAI: IT and Digital Services Minister Dr Palanivel Thiaga Rajan on Thursday acknowledged the declining share of agriculture in the state’s GDP - driven in part by the rapid growth of electronics manufacturing - but cautioned that unchecked structural imbalances in the rural economy could weaken the social fabric.
“It is vital to the health of society that small and medium-sized farm organisations, especially in the plains and hill regions, receive targeted support to survive and grow,” he said, while speaking at the 44th Foundation Day of National Bank for Agriculture and Rural Development’s (NABARD) Tamil Nadu Regional Office.
“A vibrant middle - whether in class or enterprise - is the hallmark of a stable democracy. Without it, stratification leads to disparity,” he said. His comments come as the state doubles down on its push to become a $1 trillion economy, with rural infrastructure, digital agriculture, and climate resilience seen as critical enablers.
The minister urged NABARD to deepen its role in facilitating inclusive growth through innovation in agri-finance and institutional capacity-building. He released the Indicative Unit Cost booklet for FY2025-26, a key reference tool for banks to assess long-term farm loan requirements, and launched NABTRACE, a mobile application designed to enable traceability in agricultural commodity supply chains. He also commended NABARD’s contributions to the rural economy through special funds such as RIDF and NIDA, and its support for computerising all Primary Agricultural Credit Societies (PACS) in the state.