India is one of the major players in the agriculture sector worldwide and is the primary source of livelihood for about 58% of India’s population. India has the world's largest cattle herd (buffaloes), the most significant area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agricultural sector in India holds the record for the 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.

1. Agriculture
inIndia
Submittedby:
AryanSinha

2. Introduction
Indiaisoneof themajorplayersintheagriculturesector
worldwideanditistheprimarysourceof livelihoodfor
about58%ofIndia’spopulation.Indiahastheworld's
largestcattleherd(buffaloes),largestareaplantedto
wheat,rice,andcotton,andisthelargestproducerof
milk,pulses,andspicesintheworld.Itisthesecond-
largestproduceroffruit,vegetables,tea,farmedfish,
cotton,sugarcane,wheat,rice,cotton,andsugar.
AgriculturesectorinIndiaholdstherecordforsecond-
largestagriculturallandintheworldgenerating
employmentfor abouthalfofthecountry’spopulation.
Thus,farmersbecomeanintegralpartofthesectorto
provideuswithmeansofsustenance.

3. MarketSize
AccordingtoInc42,theIndianagriculturalsectoris
predictedtoincreasetoUS$24billionby2025.Indianfood
andgrocerymarketistheworld’ssixthlargest,withretail
contributing70%ofthesales.AsperFirstAdvance
EstimatesforFY2022-23(Kharifonly),totalfood grain
productioninthecountryisestimatedat149.92million
tonnes.RapidpopulationexpansioninIndiaisthemain
factordrivingtheindustry.Therisingincomelevelsin
ruralandurbanareas,whichhavecontributedtoan
increaseinthedemandforagriculturalproductsacross
thenation,provideadditionalsupportfor this.

4. Major
investments
and
developments
inagriculture

5.  ThesectorhasalsorecordedasharpincreaseininvestmentswithcumulativeFDIinflowof US$2,600.70millionbetween
April2000-June2022.
 In2022,theGovernmentofIndiaisplanningtolaunchKisanDronesfor cropassessment, digitizationoflandrecords,
sprayingofinsecticides andnutrients.
 India’sagriculturalandprocessed foodproductsexportsstoodatUS$9,598millioninFY2022-23(April-July2022),upby30%
YoY.
 InOctober2022,PrimeMinisterMr.NarendraModiinauguratedPMKisanSammanSammelan2022andreleasedPM-KISAN
FundsworthRs.16,000crore(US$1.93billion)
 InAugust2022,aSpecialFoodProcessingFundofRs.2,000crore(US$242.72million)wassetupwithNationalBankfor
AgricultureandRuralDevelopment(NABARD)toprovideaffordablecreditforinvestmentsinsetting upMegaFoodParks
(MFP)aswellasprocessingunitsintheMFPs.
 InAugust2022,Mr.NarendraSinghTomar,MinisterofAgricultureandFarmersWelfareinauguratedfournewfacilitiesatthe
CentralAridZoneResearchInstitute(CAZRI),whichhasbeenrenderingexcellentservices formorethan60yearsunderthe
IndianCouncilofAgriculturalResearch (ICAR).
 GrossValueAddedbytheagricultureandalliedsectorwas18.8%inFY2021-22(until31January,2022)

6.  Agricultureandalliedactivitiesrecordedagrowthrateof3.9%inFY2021-22(until31January,2022)
 ConsumerspendinginIndiawillreturntogrowthin2022postthepandemic-ledcontraction,expandingbyasmuchas7%.
 Privateconsumptionexpenditure(atconstantprices)wasestimatedatRs.80.8trillion(US$1.08trillion)inFY22againstRs.
75.6trillion(US$1.01trillion)inFY20.
 Theorganicfood segmentinIndiaisexpectedtogrowataCAGRof10%during2015-¬25andisestimatedtoreachRs.75,000
crore(US$10.73billion)by2025fromRs.2,700crore(US$386.32million)in2015.
 Theprocessedfood marketinIndiaisexpectedtogrowtoRs.3,451,352.5crore(US$470billion)by2025,fromRs.1,931,288.7
crore(US$263billion)inFY20onthebackofgovernmentinitiativessuchasplannedinfrastructureworthUS$1trillionand
PradhanMantriKisanSampadaYojna.Thefoodprocessingindustryemploysabout1.77millionpeople.Thesectorallows
100%FDIundertheautomaticroute.
 From2017to2020,Indiareceived~US$1billioninagritechfunding.Withsignificantinterestfromtheinvestors,Indiaranks
thirdintermsofagritechfundingandnumberofagritechstart-ups.By2025,Indianagritechcompaniesarelikelytowitness
investmentsworthUS$30-35billion.
 NestleIndiawillinvestRs.700crore(US$100.16million)inconstructionofitsninthfactoryinGujarat.

7. Recentmajor
government
initiativesin
agricultural
sector

8.  InOctober2020,thegovernmentannouncedthatitisputtingupacommondatainfrastructureforfarmersinthecountry.
PMFBY(PradhanMantriFasalBimaYojana),PM-KisanandtheSoilHealthCardwill beintegratedthroughacommon
database,alongwithlandrecorddetails.
 InSeptember2020,President RamNathKovindgavehisassenttothreeagriculturebills —TheFarmers’ProduceTradeand
Commerce(Promotion andFacilitation)Bill,2020,TheFarmers(EmpowermentandProtection) Agreementof Price
AssuranceandFarmServicesBill,2020,andTheEssentialCommodities(Amendment)Bill2020.
 InSeptember2020,thegovernmentlaunchedthePMMatsyaSampadaYojana,e-GopalaAppandseveralinitiativesin
fisheries production,dairy,animalhusbandryandagriculture.Underthisscheme,aninvestmentofRs.20,000crore(US$2.7
billion)willbemadeinthenext4-5yearsin21states.
 In2019-20,Rs.202.5crore(US$28.73million)wasallocatedtotheRainfedAreaDevelopment,asub-schemeunder
RashtriyaKrishiVikasYojana(RKVY)
 InMay2020,theGovernmentannouncedthelaunchofananimalhusbandryinfrastructuredevelopmentfundofRs.15,000
crore(US$2.13billion).InSeptember2019,PrimeMinister,Mr.NarendraModilaunchedNationalAnimalDisease Control
Programme(NADCP),expectedtoeradicatefootandmouthdisease (FMD)andbrucellosisinlivestock.InMay2020,Rs.13,343
crore(US$1.89billion)wasallocatedtothescheme.
 InMay2019,NABARDannouncedaninvestmentofRs.700crore(US$100million)venturecapitalfundforequityinvestment
inagricultureandrural-focusedstart-ups

9.  UnderUnionBudget2019-20,PradhanMantriSammanNidhiYojanawasintroducedwhereaminimumfixedpensionof Rs.
3000(US$42.92)wastobeprovidedtotheeligiblesmallandmarginalfarmers,subjecttocertainexclusionclauses,on
attainingtheageof60years.
 TheGovernmentofIndiacameoutwiththeTransportandMarketingAssistance(TMA)schemetoprovidefinancialassistance
fortransportandmarketingofagriculturalproductsinordertoboostagricultureexports.
 TheAgricultureExportPolicy,2018wasapprovedbytheGovernmentof IndiainDecember2018.Thenewpolicyaimedto
increaseIndia’sagriculturalexporttoUS$60billionby2022andUS$100billioninthenextfewyearswithastabletrade
policyregime.
 TheGovernmentofIndiaisgoingtoprovideRs.2,000crore(US$306.29million)forcomputerizationofPrimaryAgricultural
CreditSociety(PACS)toensurecooperatives arebenefittedthroughdigitaltechnology.
 TheGovernmentofIndialaunchedthePradhanMantriKrishiSinchaiYojana(PMKSY)withaninvestmentofRs.50,000crore
(US$7.7billion)aimedatthedevelopmentofirrigation sourcesforprovidingapermanentsolutionfromdrought.
 Governmentplanstotriplethecapacityoffood processingsectorinIndiafromthecurrent10%ofagricultureproduceand
hasalsocommittedRs.6,000crore(US$936.38billion)asinvestmentsfor megafoodparksinthecountry,asapartofthe
SchemeforAgro-MarineProcessingandDevelopmentofAgro-ProcessingClusters(SAMPADA).
 TheGovernmentofIndiahasallowed100%FDIinmarketingoffood productsandinfood productE-commerceunderthe
automaticroute.

10. RoadAhead
India isexpectedtoachievetheambitious goalofdoubling farmincomeby
2022. Theagriculture sectorinIndiaisexpectedto generatebettermomentum
inthenextfewyearsduetoincreasedinvestmentinagricultural
infrastructuresuchas irrigation facilities,warehousingandcoldstorage.
Furthermore,thegrowinguseofgeneticallymodifiedcropswilllikelyimprove
theyieldforIndianfarmers.India isexpectedto beself-sufficientinpulsesin
thecomingfewyearsdueto concertedeffortofscientiststo getearlymaturing
varietiesofpulsesandtheincreaseinminimumsupport price.
Inthenextfiveyears,thecentralgovernmentwillaim US$9billionin
investmentsinthefisheriessectorunderPMMatsya Sampada Yojana. The
governmentistargetingto raisefishproduction to 220 lakhtonnesby2024-25.
Goingforward, theadoption offoodsafetyandquality assurancemechanisms
suchasTotalQualityManagement(TQM)includingISO9000, ISO22000, Hazard
Analysis andCriticalControlPoints(HACCP),Good ManufacturingPractices
(GMP) andGood HygienicPractices(GHP) bythefoodprocessingindustry will
offerseveralbenefits.Theagri exportfromIndiais likelyto reachthetargetof
US$60 billionbytheyear2022.

11. Thank
you