Content
- Role of Technology in Empowering Annadatas
- Recommendations of the 56th Meeting of the GST Council held at New Delhi, toda
Role of Technology in Empowering Annadatas
Basics
- Annadata: Literally “provider of food” – refers to Indian farmers.
- Importance: 45%+ of India’s workforce is engaged in agriculture; sector contributes ~18% to GDP (2024-25).
- Challenge: Low productivity, climate change, fragmented landholdings, price volatility, middlemen exploitation.
- Solution Pathway: “Beej se Bazaar Tak” modernization through technology → higher yields, reduced risks, better incomes
Relevance : GS III (Economy – Agriculture, Energy Security, Sustainable Development) + GS II (Governance – Farmers’ Welfare, Rural Development, Climate Commitments) + GS I (Geography – Resource Distribution).
Artificial Intelligence (AI) & Internet of Things (IoT)
- Information access:
- Kisan e-Mitra: AI chatbot in 11 languages; 95 lakh+ queries solved; reduces language & literacy barriers.
- Crop protection:
- NPSS (2024): Covers 61 crops & 400 pests; issued 10,154 pest advisories by Mar 2025 → minimizes losses from pests/climate risks.
- Precision & smart farming:
- AI-enabled satellite mapping improves crop forecasting & farm-level decisions.
- IoT sensors: Monitor soil, water, and weather → optimize input use.
- Research application:
- IIT Ropar’s IoT for saffron → enhancing niche/high-value crops.
- Impact: Predictive analytics → less dependence on guesswork; reduces costs, increases sustainability.
Space Technology in Agriculture
- Crop Forecasting (FASAL Project):
- MNCFC uses ISRO’s optical & microwave satellite data → covers wheat, rice, sugarcane, pulses, oilseeds.
- Crop Health Factor introduced → better early warning for stress.
- Risk Management:
- Real-time drought monitoring via SAC geoportals.
- Support to PMFBY (insurance): Smart sampling, yield estimation, dispute resolution.
- Decision Making:
- Krishi-DSS: Integrates weather-soil-water data for farmers & policymakers.
- Impact: Space-based agriculture transforms macro-forecasting into micro-advisories for farmers.
Drone Revolution
- Government support (SMAM):
- Subsidies: Up to 100% for ICAR/Institutions, 75% for FPOs, 40–50% for farmers & CHCs.
- Special benefits for SC/ST, women, NE farmers.
- Applications:
- Precision spraying, crop monitoring, soil health mapping, insurance surveys.
- Namo Drone Didi (2023-26):
- Budget: ₹1261 crore; 15,000 drones for Women SHGs; 80% subsidy up to ₹8 lakh.
- Empowerment of women as agri-entrepreneurs.
- SVAMITVA (Land mapping):
- Drones surveyed 3.23 lakh villages (till July 2025).
- Outcomes: Reduced land disputes, formal ownership papers → bank credit access.
- Impact: Drones reduce costs, democratize tech, empower women & rural youth.
JAM Trinity in Agriculture
- Direct Benefit Transfers (DBT): Eliminates middlemen & corruption.
- Example: PM-KISAN 20th installment (Aug 2025) – ₹20,500 crore to 9.7 crore farmers.
- Financial empowerment: Bank accounts + Aadhaar + Mobile → rural credit inclusion.
- Impact: Predictable income flow, better planning capacity for farmers.
Broader Digital Ecosystem
- Digital Agriculture Mission: Promotes agri-startups, use of big data, digital platforms.
- e-NAM (National Agricultural Market):
- Online trading platform; reduces mandi-based exploitation; widens market access.
- Agri-Tech Startups: Innovating in supply chain, storage, e-commerce, credit scoring for small farmers.
- Integration: Seed → Production → Market → Insurance → Credit all digitized.
Strategic Impact of Technology on Annadatas
- Productivity: Smart farming & AI forecasting reduce input costs and increase yields.
- Resilience: Space-based & IoT monitoring makes agriculture climate-smart.
- Equity: JAM & drone schemes empower smallholders, women, and marginalized groups.
- Efficiency: Drones, digital marketplaces, and satellite tools cut delays & wastage.
- Trust & Transparency: DBT & land mapping reduce disputes and middlemen exploitation.
- National Goals: Contributes to Doubling Farmers’ Income, Atmanirbhar Bharat, and SDGs (2 – Zero Hunger, 5 – Gender Equality, 8 – Decent Work, 13 – Climate Action).
Conclusion
- Technology as Equalizer: AI, IoT, drones, and space tech bridge information and resource gaps, empowering small and marginal farmers with tools once limited to large-scale farming.
- Inclusive Growth Driver: Initiatives like JAM, Namo Drone Didi, and SVAMITVA ensure transparency, financial inclusion, and women’s participation, making agriculture more equitable and resilient.
- Future-Ready Agriculture: By integrating “Beej se Bazaar Tak” digitally, India is building a climate-smart, market-linked, and self-reliant agricultural ecosystem, securing both farmer prosperity and national food security.
Recommendations of the 56th Meeting of the GST Council held at New Delhi, today
Basics of GST
- GST (Goods and Services Tax): Indirect tax subsuming excise duty, service tax, VAT, CST, etc., implemented in India w.e.f. 1st July 2017.
- GST Council: Apex federal body chaired by Union Finance Minister with State FMs, decides GST rates and reforms.
- Current Structure (till now): 4-tier rate system – 5%, 12%, 18%, 28% (plus cess on demerit goods).
- Challenges in GST so far:
- Complex multi-rate structure.
- Inverted duty structure (higher tax on inputs than finished goods).
- Pending disputes due to absence of appellate tribunal.
- Burden on small businesses in compliance.
- Affordability of essentials like healthcare, insurance, and medicines.
Relevance : GS III (Economy – Taxation, Resource Mobilisation, Growth & Development) + GS II (Governance – Cooperative Federalism, Institutions, Ease of Doing Business).
Rate Rationalisation
- Move from 4-tiered structure → 2 rates + demerit slab:
- Merit Rate: 5% (essentials, food items, agri-goods, labour-intensive products).
- Standard Rate: 18% (majority of goods & services).
- Demerit Rate: 40% (sin goods – pan masala, gutkha, cigarettes, tobacco).
- Simplifies compliance, reduces disputes, improves consumer trust.
Relief to Common Man
- Insurance: Exemption of GST on all life and health insurance policies.
- Healthcare:
- GST NIL on 33 lifesaving drugs, NIL on 3 cancer/rare disease medicines.
- Medicines: 12% → 5%; Medical apparatus & diagnostic kits: 18/12% → 5%.
- Household goods: Reduction to 5% on soaps, shampoos, toothpaste, bicycles, tableware.
- Food:
- UHT milk, paneer, Indian breads → NIL.
- Packaged food (noodles, chocolates, coffee, butter, ghee, cornflakes) → 5%.
Boost to Key Sectors
- Agriculture: Machinery, tractors → 12% → 5%.
- Labour-Intensive industries: Handicrafts, granite, leather goods → 5%.
- Automobiles:
- Small cars & motorcycles ≤350cc → 28% → 18%.
- Buses, trucks, ambulances, 3-wheelers → 18%.
- Auto parts → uniform 18%.
- Cement: 28% → 18% (massive infra push).
- Textiles: Correction of inverted duty (fibre 18% → 5%; yarn 12% → 5%).
- Fertilizers: Acids (sulphuric, nitric, ammonia) 18% → 5%.
- Renewables: Devices & parts 12% → 5%.
- Hospitality: Hotel accommodation ≤ ₹7,500/day → 5%.
- Well-being services: Gyms, salons, yoga centres → 5%.
Institutional Reforms
- Operationalisation of GST Appellate Tribunal (GSTAT):
- Appeals by Sept 2025, hearings by Dec 2025.
- Principal Bench to act as National Appellate Authority for Advance Rulings.
- Reduces litigation backlog, enhances taxpayer trust.
Trade Facilitation
- Refunds:
- 90% risk-based provisional refunds for exports (zero-rated supplies).
- 90% refunds for inverted duty claims (from Nov 2025).
- Removal of threshold for small exporters (courier/postal mode exports).
- Simplified GST Registration:
- Low-risk businesses with <₹2.5 lakh monthly liability → auto registration in 3 days.
- Benefits ~96% new applicants.
- E-commerce sellers: Simplified GST for small suppliers operating across states.
- Amendments for Intermediary Services: Export services to be taxed at location of recipient, enabling export benefits.
Law & Procedure Reforms
- Post-sale discounts:
- Discount eligibility simplified; ITC reversal mechanism clarified.
- Circular 212/6/2024 rescinded to cut disputes.
- Pan masala, gutkha, tobacco: GST based on Retail Sale Price (RSP) rather than transaction value to curb evasion.
- Lottery valuation rules aligned with revised GST.
Implementation Timeline
- 22 Sept 2025: New GST rates on goods & services (except tobacco/sin goods).
- 1 Nov 2025: Refund reforms + simplified registration.
- Till compensation cess loan repayment: No rate cut on sin goods (pan masala, cigarettes, gutkha).
Broader Implications
- For Citizens: Lower prices on essentials, healthcare, insurance → higher affordability & social security.
- For Economy: Boost to agriculture, MSMEs, textiles, construction, renewables → growth multiplier.
- For Business Climate: Simplified structure, uniform auto-parts rate, corrected duty inversions → ease of doing business.
- For Governance: GSTAT + refund reforms → reduces litigation & delays, strengthens trust in GST system.
- For Fiscal Health: While revenue short-term dips, broadened base + compliance efficiency expected to compensate.
