The sector registered an average Y-o-Y growth rate of 4.2% in the last five years. The increasing R&D and the rising government support are primarily driving the industry growth. In FY2023, $127 million was spent on agriculture research. The foodgrain production hit an all-time high of 329.7 million tons and oilseeds production reached 41.4 million tons during the period.
The Pradhan Mantri Kisan Maandhan Yojna (PMKMY) offers a monthly pension to the enrolled farmers on the attainment of 60 years of age, and 2.3 million farmers enrolled under the scheme as of July 2024. Pradhan Mantri Fasal Bima Yojana (PMFBY) offers a safety net against crop losses due to natural calamities, pests, or diseases, ensuring financial stability for farmers. The scheme insured an area of 610 lakh hectares in FY2024. Since its initiation the scheme insured 554.9 million farmers, settling claims worth $18.2 billion. The government launched the PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) initiative, which promotes sustainable development.
The government is additionally targeting climate-resilient agriculture with the launch of initiatives such as the National Mission for Sustainable Agriculture (NMSA). Technological integration through the e-NAM (National Agriculture Market) platform has transformed the sector. The platform integrates 1,260 APMC mandis across 22 states and 3 union territories online trading 203 agriculture and horticulture commodities.
The government aims to implement Digital Public Infrastructure (DPI) in agriculture, over the next three years, covering over 60 million farmers under the formal land registry system. Jan Samarth-based Kisan Credit Cards (KCC) will be enabled in five states.
India's agricultural exports reached $53.1 billion in FY2023, with APEDA (Agricultural and Processed Food Products Export Development Authority) contributing 51%. The largest importers of Indian agricultural products include the US, Bangladesh, China, the UAE, Indonesia, Vietnam, Saudi Arabia, Iran, Nepal, and Malaysia.
Robust Demand
The large population (1,210.9 million) of the country, rising disposable income, and the increasing demand for food in the global market are propelling the agriculture segment.
Competitive Advantage
India has a large agriculture sector, and abundant livestock, and the market offers cost competitiveness. The vast agricultural land and diverse agro-climatic conditions promote regional markets.
Policy Support
Government policies such as Farmer Registration and Unified Beneficiary Information System (FRUITS), National Livestock Mission, Agriclinic and Agribusiness Centres Scheme, Agriculture Infrastructure Fund (AIF) in Agri Infrastructure Loan, Agricultural Marketing Infrastructure (AMI) in Agri Infrastructure Loan, and others, boosts industry growth.
Opportunities
Industry transformation through hybrid seeds and fertilizers, increasing storage facilities, food infrastructure development, and contract farming, are propelling the market.