Agriculture, allied sectors crucial in $5-trillion economy target

Last Updated29/06/2023

The agriculture sector is one of the most important private enterprises in the Indian economy. Around 52% of the Indian population works in agriculture and contributes nearly 18% to the national GDP.
It is estimated that there are nearly 145 million farm families in the country, according to the Agriculture Census 2015-16.

Population of farmers: ~ 25% of the world's farmers are in India and hence their contribution to the national economy has its unique place.
Global contribution: 11% of total global agriculture, highest population (18% of the world), 2.4% of global land, 5% of water resources and 82% small and marginal farm holders (average 1.08 ha per farmer)
India's agriculture output between 2000 and 2021: India's agriculture output grew by 400% from $101 billion to now $532 billion.
India a topper in agriculture production: It is the leading producer of several commodities including food grains, cotton, cane, horticultural crops, dairy, poultry, aquaculture, and spices and milk and dairy products.
Current agricultural production: Food grains 330 million tons (mt), horticulture 342 mt, cotton 35 million bales of 170 kg each, milk 200 mt, fish 13 mt, poultry 4 mt and 110 billion egg production.
Declining workforce in agriculture: It has sharply declined from 60% in 2000 to 42% in 2019.
Adoption of new technologies: Technologies like hybrid cultivars, GM cotton, sensor-based micro-irrigation, resource conservation, hi-tech horticulture, artificial insemination tool in animals, sustainable intensification and mechanisation in fields.

India’s position: India ranked fifth with a $3.74 trillion economy.
IMF predictions: India will be the third-largest economy in the world by 2027, above Japan and Germany.

Export push: The trade surplus in recent years has declined from $27.7 billion a decade ago to $ 11.2 billion.
Tripling the current rate of fruit and food processing: India is currently processing around 10% of agricultural products as against 56% in the USA. India's share in the export of processed food is just about 2% or US$ 4.2 million.

Global recognition: The year 2023 is declared as the International Year of Millet.
India’s position: The country is a leader in millet production as India produces around 18 million metric tons of millet; nearly 42% of global production.
Need: The food processing industry needs to concentrate on the promotion of millet recipes and explore potential export markets.

Driven by economic necessity to maximise the returns, the small farmers have evolved through self-engineered innovation and therefore they produce a variety of agricultural and allied products around the year.
Given the desired policy support the farmers and farming shall deliver the targeted goals of the Indian economy.