Agriculture in India Market Size

India Agriculture Market Analysis

The Agriculture in India Market size is estimated at USD 372.94 billion in 2024, and is expected to reach USD 473.72 billion by 2029, growing at a CAGR of 4.90% during the forecast period (2024-2029).

• The agriculture sector is the primary livelihood source for about 58% of India's population. Although its contribution to the gross domestic product (GDP) has reduced to less than 20% and the contribution of other sectors increased at a faster rate, agricultural production has grown. This has made the country self-sufficient in meeting food security and a net exporter of agriculture and allied products.
• India is the world's second-largest producer of rice, wheat, and other cereals. The massive demand for cereals in the global market is creating an excellent environment for the export of Indian cereal products. According to FAO (2020), India is the largest producer of ginger and okra among vegetables and ranks second in the production of potatoes, onions, cauliflowers, brinjal, and cabbages. Among fruits, the country ranks first in the production of bananas (26.29%), papayas (43.26%), and mangoes (including mangosteens and guavas) (45.14%).
• In May 2022, the Union Ministry of Agriculture and Farmers' Welfare stated that the production of foodgrains in the country is estimated at a record 314.51 metric ton, which is higher by 3.77 metric ton than the production of food grain during 2020-21. The estimated production is also 23.80 metric ton more than the previous five years (2016-17 to 2020-21) average production.
• Furthermore, the Indian government is showing interest in major investments and developments in agriculture by launching several schemes and projects that aid crop productivity, sustainable farming options, and the upliftment of farmers' livelihoods. Schemes such as Paramparagat Krishi Vikas Yojana (PKVY) are helping in developing organic farming by encouraging farmers to produce commodities free of pesticides and residue.
• Also, in the Union Budget 2022-23, INR 1.24 lakh crore (USD 15.9 billion) has been allocated to the Department of Agriculture, Cooperation, and Farmers' Welfare. A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and improved production and protection technologies reach farmers. Therefore, the rise in sustainable farming practices, government initiatives, and concern to escalate crop productivity by extension services are further estimated to boost the growth of the market studied during the forecast period.