Snapshot

Agricultural export from India grew at a CAGR of 6.31% during FY16-19 to reach $38.54 bn in FY19

India has the 10th largest arable land resource in the world.

With 20 agri-climatic regions, all 15 major climates in the world exist in India. 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.

  • %

    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

Spices

India is the largest producer of spices, pulses, milk, tea, cashew and jute

Bamboo

India is the 2nd largest producer of Bamboo in the World

Fruits & Veges

India is the second-largest producers of fruits and vegetables

Industry Scenario

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.

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 US$60 billion by 2022 and $100 bn in the next few years with a stable trade policy regime.

India's export of basmati rice is expected to grow 4-5% in FY20 on the back of higher average realization, strong demand from Iran and a steady rise in paddy prices.

GROWTH DRIVERS

  • Demand-side drivers

    Population and income growth, Increasing exports & Favourable demographics

  • Supply-side drivers

    Hybrid and genetically modified seeds, Favourable climate for agriculture and wide variety of crops, Mechanisation Irrigational facilities and Green revolution in Eastern India

  • Policy Support

    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

Major Investors

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FAQ

Frequently
Asked Questions

What is the Agricultural Marketing Infrastructure scheme?

It is common knowledge that there is a need to promote agriculture marketing infrastructure projects for reducing the involvement of intermediates and minimizing post-harvest losses. A robust agriculture marketing infrastructure will ensure better remuneration to farmers and supply of better quality products to consumers and processing industries. During the XII plan period, the estimated investment for marketing infrastructure and value chain development was $ 8.61 billion .

To address this need, the Department of Agriculture and Cooperation (DAC), Govt. of India has introduced the Agricultural Marketing Infrastructure (AMI) Scheme by merging the earlier GrameenBhandaranYojana (GBY) and the Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS).

What is agricultural biotechnology?

Agricultural biotechnology is an advanced technology that allows plant breeders to make precise genetic changes to impart beneficial traits to the crop plants we rely on for food and fiber.

For centuries farmers and plant breeders have labored to improve crop plants. Traditional breeding methods include selecting and sowing the seeds from the strongest, most desirable plants to produce the next generation of crops. By selecting and breeding plants with characteristics such as higher yield, resistance to pests and hardiness, early farmers dramatically changed the genetic make-up of crop plants long before the science of genetics was understood. As a result, most of today's crop plants bear little resemblance to their wild ancestors.

The tools of modern biotechnology allow plant breeders to select genes that produce beneficial traits and move them from one organism to another. This process is far more precise and selective than crossbreeding, which involves the transfer of tens of thousands of genes, and provided plant developers with a more detailed knowledge of the changes being made.

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