While the Indian economy is poised to face a severe contraction in the coming quarters, the agriculture sector is expected to lead the economy from the front. The agriculture and allied activities may grow at 3.8 per cent in the current fiscal year 2020-21, with buoyant Kharif and Rabi output, said a report by Care Ratings. Consequently, farmers’ disposable income is also expected to rise by about Rs 40,000 crore, after keeping aside money for investment, intermediate consumption, and raw materials. The growth in the farm sector is expected to lift the demand for other sectors as well. An increase in expenditure from the rural areas will be beneficial for sectors like automobiles, durables, FMCG, apparels among others as the overall demand prospects are expected to remain muted this festive season due to the loss of purchasing power by the urban households and pandemic situation, the report added.