AGRICULTURE OVERVIEW
As per the provisional estimation the rapid growth has been seen in agriculture sector with growth rate of 10.4% in 2024–25.
India has the world’s largest cattle herd (buffaloes), largest area planted to wheat, rice, and cotton, and is the largest producer of milk, pulses, millets and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton and sugar.
Agriculture sector in India holds the record for second- largest agricultural land in the world generating employment for about half of the country’s population. Thus, farmers become an integral part of the sector to provide us with means of sustenance.
• Land Use Statistics: According to Land Use Statistics 2021– 22, the nation’s total land area is 328.7 million hectares, of which 219.19 million hectares are grossly cropped with a cropping intensity of 155.4% and 141.01 million hectares are the reported net sown area. The net area sown works out to be 42.4% of the total geographical area. The net irrigated area is 77.916 million hectares.
• Gross Value Added (GVA) of Agriculture & Allied Sector: Gross Value Added (GVA) of Agriculture and Allied Sector has been growing at a rate of 4.4 percent per annum over the last seven years. Ministry of Statistics & Programme Implementation reported the agriculture
and allied sectors contribute 17.59% to India’s Gross Value Added (GVA) at current prices in the fiscal year 2023-24.
• The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.
MARKET SIZE
The agriculture industry in India is estimated at USD 372.94 billion in 2024, and is expected to reach USD 473.72 billion by 2029, growing at a CAGR of 4.90% during the forecast period (2024-2029). The Indian agri-tech sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The export of agricultural and processed food products stood at $21.6 billion in the 11 months till February 2024. For 2022-23 (Kharif only), total foodgrain production in the country is estimated at 153.43 million
tonnes. According to recent data, the agriculture and allied sectors contribute 17.59% to India’s Gross Value Added (GVA) at current prices in the fiscal year 2023-24. Between April 2000-December 2023, FDI in agriculture services stood at US$ 4.43 billion
The Government of India set a target to achieve exports of worth $2 trillion by 2030 and increased it to $21 trillion by 2047.
Government Initiatives
Some of the recent major Government initiatives in the sector are as follows
• Kisan Drones for crop assessment, digitization of land records, and spraying of insecticides and nutrients.
• 731 Krishi Vigyan Kendras: Have been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and improved production and protection technologies reach farmers.
• ‘Dairy Sahakar’ for cooperatives in milk production by Ministry of Cooperatives.
• Krishi UDAN 2.0 by Ministry of Civil Aviation which proposes assistance and incentive for the movement of agri-produce by air transport, largely focusing on Northeast and tribal regions, and is expected to benefit farmers, freight forwarders, and airlines.
• Digital Agriculture Mission 2021-25 for agriculture projects based on new technologies such as artificial intelligence, blockchain, remote sensing and GIS technology, drones, robots, and others.
• Pradhan Mantri Krishi Sinchai Yojana (PMKSY) It
aimed at the development of irrigation sources for providing a permanent solution to drought.
• 100% FDI in the marketing of food products and in food product E-commerce under the automatic route.
• Income Support: Provided to farmers through PM KISAN Scheme, crop insurance is assured through the Pradhan Mantri Fasal Bima Yojana and irrigation facilities are ensured under Pradhan Mantri Krishi Sinchai Yojana.
• e-NAM initiative: Markets across the length and breadth of the nation are now open to farmers, to enable them to get more remunerative prices for their produce. Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme.
• Scheme Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ensures Minimum Support Price (MSP) to farmers for various Kharif and Rabi crops while also keeping a robust procurement mechanism in place.
• PM Matsya Sampada Yojana sub-scheme with a targeted investment of Rs. 6,000 crores will be introduced to support fisheries sector, fishermen and micro and small businesses, as well as to increase market share and value chain efficiencies.
Union Budget 2023-24: Key Provisions for Agriculture
• Provision for agricultural in budget 2026
• Allocation of Rs.1.30 lakh crore in (2026-27)
• A provision of ₹9,967 crore has been made for agricultural education and research
• Under the PM KISAN government allocated an amount of ₹18,640 crore to 9.32 crore farmers.
Role of Agriculture in Indian Economy
Agriculture is key in all economies no matter what their degree of advancement. It meets a portion of the basic human needs by giving food and non-food needs. It gives;
• Food Items like Rice, Wheat, Coarse Grains and Pulses,
• commercial Crops like Oilseeds, Cotton and Sugarcane, Tea and Coffee, contribute to Indian exports.
• Plantation Crops like organic products, vegetables, blossoms, flavors, cashews and coconut.
• Allied Products: Related products like milk and dairy items, poultry items, and fisheries are generated by farmers
significance
• Contribution to GDP: The agricultural sector plays a pivotal role in the contribution to the GDP of the country since independence. About 59 percent of the country’s total GDP was provided by the agricultural sector between 1950-1951.
•
Employment: Largest employer, employing over 50% of the population
• Source of Food: India is the world's most populous country and has achieved self-sufficiency in food grain production.
• Industrial Contribution: There is a constant need for raw materials and most of the industries of the country collect their sources of raw materials from the agricultural sector.
• Government Revenue Source: The nation’s state and Union governments rely heavily on the agricultural sector for their financial support. E.g. railways make money from agricultural freight.
• Role of Agriculture in Economic Planning: Strong agricultural performance stimulates overall economic growth by creating a robust business environment for transportation, manufacturing and trade sectors.
Trends in Agriculture: In the post-liberalization era there is increased production, increased investment, and diversification of the sector, use of modern techniques, development of horticulture and floriculture, increasing volume of exports and development of the food processing industry. Agriculture is moving beyond staple crops to include high-value products like fruits, vegetables, spices, and flowers. Horticulture production has increased significantly in recent years, India’s horticulture production for 2023-24 is estimated to be about 355.25 million tonnes. New agricultural strategies and technologies are being introduced in previously neglected regions. Initiatives like dryland farming, horticulture, and animal husbandry are promoting growth in these areas.