The agricultural exports as a percentage of India’s agricultural GDP has increased from 9.4 % in 2017-18 to 9.9 % in 2018-19.
India has the 10th largest arable land resource in the world.
The exports of Agri commodities showed a sharp increase of 23.24% during March - June 2020 witnessing an export of INR. 25,552.7 Cr against the export of INR. 20,734.8 Cr during the same period in 2019. Moreover, Agriculture contributes to 16.5% of India’s gross domestic product (GDP) and employs 43% of the Indian workforce. With 20 agri-climatic regions, all 15 major climates in the world exist in India. Agriculture is the backbone of Indian economy as it serves as the primary source of livelihood for approximately 58% of India’s population. The country also possesses 46 of the 60 soil types in the world. Growth in Gross Value Added (GVA) by agriculture and allied sectors stood at 4% in 2019-20.
Schemes like Paramparagat Krishi Vikas Yojana has helped in developing organic clusters and availability of chemical-free inputs to farmers, while the Government of India is also aiming to double farmers’ income by 2022. The high proportion of agricultural land (157 mn hectares) and diverse agro-climatic conditions encourage the cultivation of different crops.
Moreover, India is the largest consumer of sugar in the world. The sugar industry is amongst the most significant agro-based industries in the country that influences the livelihood of about more than 5 crore farmers and their family members. Over 5 lakh workers are directly employed with the sugar mills in India.
Share of world’s area under bamboo cultivation
Production of total coconut production in the world
Horticulture contribution of agricultural GDP
Non-Timber forest produce contribution to total employment in the forestry sector
India is the largest producer of spices, pulses, milk, tea, cashew and jute
India is the 2nd largest producer of Bamboo in the World
India is the second-largest producers of fruits and vegetables
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The foodgrains production during 2019-20 was 296.65 MMT and horticulture production was 319.57 MMT, the highest ever
Agriculture is the primary source of livelihood for about 58% of India’s population.
The Agriculture Export Policy, 2018 was approved by the Government of India in December 2018. The new policy aimed to increase India’s agricultural export to $60 bn by 2022 and $100 bn in the next few years with a stable trade policy regime.
In 2019, India was the 9th largest exporter of agricultural products and the total value of exported agricultural products stood at $37.4 bn.
India exported agri-machinery worth $1,024 mn during 2019-20. Of this, 76.4% was exported to the UK, North America, Eastern Europe, EU, Africa, ASEAN and SAARC.
During April-December 2020, the exports of cereals rose to INR 49,832 crore from INR 32,591 crore ($4581 mn) reported during the same period in the previous year. The exports of cereals witnessed a rise of 52.90% in Rupee term and 45.81% in US dollar term.
During April-December 2020, the export of Basmati Rice was $2947 mn against $2936 mn reported during same period in the previous year. Major destination for the Basmati rice exports from India is to the countries including Iran, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, European Countries etc.
India ranks first in number of organic farmers and ninth in terms of area under organic farming.
India’s agriculture technology can grow to $24.1 bn in 5 years.
The current market size of agri tech, including AI-based agri innovation start-ups in India, is nearly worth $204 mn.
Large population and rising urban and rural income have added to growth in demand for agriculture products. As per the Union Budget of India 2020-21, allocation of $40.06 bn was made to the Ministry of Agriculture.
Population and income growth, Increasing exports & Favourable demographics
Hybrid and genetically modified seeds, Favourable climate for agriculture and wide variety of crops, Mechanisation Irrigational facilities and Green revolution in Eastern India
Growing institutional credit, Increasing MSP, Introduction of new schemes like Paramparagat Krishi Vikas Yojana, Pradhanmantri Gram, Sinchai Yojana, and Sansad Adarsh Gram Yojana and Opening exports of wheat and rice
Initiatives like Kisan Rath (mobile app for farmers, FPOs and traders), 200+ Kisan Rails and Krishi Udaan Scheme for produce transportation, and Perishable Cargo Centres, cold storage facilities at Airports and Inland Container Depot as well as cargo terminals and warehouses.