AGRI SECTOR GROWTH INDIA

Growth and opportunities in India’s agriculture sector

Indian Agriculture Sector – The Indian agriculture market is expected to reach USD 581 billion by 2028. With the growing population and changing consumption patterns, the Indian agriculture market has been witnessing growth in recent years. The agriculture sector is one of the largest and contributes significantly to the country’s GDP, employment, and export earnings.

WHAT KIND OF PRODUCE DOMINATE THE AGRICULTURE MARKET?

Sixty percent of the market is dominated by the crop segment. The crop segment includes – cereals and grains, such as rice, wheat, and maize.

Experts forecast that the livestock and fisheries segments are also expected to witness significant growth. This will be driven by increasing demand for meat, dairy, and fish products.

HOW MUCH AGRI PRODUCE ARE EXPORTED?

During the financial year (Apr. 2022 – January 2023), the agricultural exports have amounted to USD 43.37 billion, registering an increase of 6.04% over the exports of USD 40.90 billion during the corresponding period of the previous financial year i.e. April 2021 to January 2022.

WHAT ARE THE KEY DRIVERS OF GROWTH IN THE INDIAN AGRICULTURE MARKET?

The key drivers of growth in the Indian Agriculture market include increasing population, rising demand for food and agricultural products, government initiatives to promote agriculture, and increasing use of technology in agriculture.

WHAT ARE THE GROWTH OPPORTUNITIES IN THE INDIAN AGRICULTURE MARKET?

  • There are several growth opportunities in the agriculture sector. They are increasing exports, improving supply chain infrastructure, promoting agro-processing industries, and investing in research and development.
  • The organic food segment in India is expected to grow at a CAGR of 10% during 2015-¬25 and is estimated to reach Rs. 75,000 crore (US$ 9.1 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.
  • Over the next 3 years, government is set to facilitate 1 crore farmers for adopting Natural Farming
  • The processed food market in India is expected to grow to Rs. 3,451,352.5 crore (US$ 470 billion) by 2025, from Rs. 1,931,288.7 crore (US$ 263 billion) in FY20 on the back of government initiatives such as planned infrastructure worth US$ 1 trillion and Pradhan Mantri Kisan Sampada Yojna. The food processing industry employs about 1.77 million people. The sector allows 100% FDI under the automatic route.
  • Government plans to triple the capacity of the food processing sector in India from the current 10% of agricultural produce and has also committed Rs. 6,000 crore (US$ 729 million) as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).
  • The Government of India has allowed 100% FDI in the marketing of food products and in food product E-commerce under the automatic route.
  • To enhance the income of farmers, the government has taken initiatives across several focus areas. Income support is 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.
  • As per the economic survey 2022-23, Rs. 13,681 crore (US$ 1.6 billion) were sanctioned for Post-Harvest Support and Community Farms under the Agriculture Infrastructure Fund.
  • Capacity Enhancement: In order to build capacity of the farmers and ensure due credit for the huge service of the farmers:

WHAT ARE THE OPPORTUNITIES IN MILLETS PRODUCTION?

India is at the lead of popularising Shree Anna (Millets) for ensuring food security and welfare of farmers. Currently, India is the largest producer and second largest exporter of millets. Several steps are being taken to make India a global hub for Shree Anna (Millets) to enhance profitability for farmers growing Shree Anna.