Growth and Resilience in Indian Agriculture: A Sectoral and Policy Analysis (2011–24)

Sector-wise Performance Analysis

1. Crop Sector: Largest contributor with 54.1% of GVO in 2023–24. Paddy and wheat form ~85% of cereal output. Oilseeds and pulses face productivity challenges.
2. Floriculture: GVO doubled to ₹28.1 thousand crore; growing demand for ornamental flowers enhances commercial value.
3. Condiments & Spices: Strong growth with top producers: Madhya Pradesh (19.2%), Karnataka (16.6%), Gujarat (15.5%). High export potential.
4. Fisheries & Aquaculture: GVO share rose to 7.0%. Marine fisheries gaining ground; inland share declined to 50.2%.
5. Horticulture: Boosted under MIDH; includes fruits, vegetables, plantation crops. Rising share in high-value agriculture.
6. Animal Husbandry: Major source of rural income via milk, meat, and poultry. Supported by missions like Gokul and Livestock.
7. Forestry & Logging: Small GVO share but vital for tribal income and ecological balance. Agroforestry gaining traction.
8. Agri-Processing: Growing sector for value addition and employment; supported by Agri Infra Fund and PM-FME.

Government Initiatives and Policy Interventions

1. Agriculture Infrastructure Fund (AIF): ₹1 lakh crore fund to strengthen post-harvest and value chain infrastructure.
2. Digital Agriculture Mission: Facilitates data integration, digital services, and precision tools in farming.
3. PM Matsya Sampada Yojana (PMMSY): Targets modernization and formalization of the fisheries sector.
4. Mission for Integrated Development of Horticulture (MIDH): Supports holistic growth of fruits, vegetables, and plantation crops.
5. Pradhan Mantri Fasal Bima Yojana (PMFBY): Provides crop insurance to mitigate climate and disaster risks.
6. Rashtriya Krishi Vikas Yojana (RKVY): Catalyzes state-level investment and innovation in agriculture.
7. Financial Inclusion Initiatives: PM-KISAN, Kisan Credit Card (KCC), and NABARD support ensure credit and income flow.

Technological and Digital Transformation

1. Use of AI and Big Data: Enables predictive analytics, weather forecasting, and yield estimation.
2. Remote Sensing & GIS Tools: Help in crop monitoring, soil mapping, and precision inputs.
3. eNAM (National Agriculture Market): Facilitates transparent and unified online trading of agri-produce.
4. Agri Startups: Promoting innovation through incubation, drone services, and tech-based advisories.
5. Mobile Apps & Farmer Portals: Enhance access to information on seeds, weather, and market prices.
6. Digital Land Records & Registries: Aid in subsidy targeting, insurance, and tenancy reforms.
7. Smart Farm Equipment: Usage of IoT, automation, and robotics in irrigation, planting, and harvesting.

Sustainability and Climate-Resilient Agriculture

1. Promotion of Organic and Natural Farming: Boosting eco-friendly practices like Zero Budget Natural Farming (ZBNF).
2. Efficient Water Use: Encouraging micro-irrigation, rainwater harvesting, and Per Drop More Crop initiative.
3. Agroforestry and Mixed Farming: Enhances biodiversity and ecological resilience.
4. Climate-Smart Crops: Development and promotion of drought, flood, and heat-resistant varieties.
5. Soil Health Management: Soil Health Card Scheme and organic nutrient adoption to reduce chemical load.
6. Renewable Energy in Farming: Solar pumps and biogas plants under PM-KUSUM reduce carbon footprint.
7. Diversification of Cropping Systems: Reducing overdependence on rice-wheat; promoting millets, pulses, and horticulture.

Contribution to the Indian Economy

1. GDP Contribution: Agriculture and allied sectors contributed approximately 16% to India’s GDP in FY 2023–24 (as per Economic Survey 2024–25).
2. Employment Generation: The sector supports the livelihood of around 46.1% of the Indian population, especially in rural areas.
3. Food Security Backbone: Ensures national food security by supplying cereals, pulses, fruits, vegetables, dairy, and fish.
4. Export Contributor: Significant contributor to agri-exports like rice, spices, marine products, and horticultural goods.
5. Rural Economy Driver: Acts as the primary engine for rural income, consumption, and demand in Tier-2 and Tier-3 areas.
6. Raw Material Supplier: Supports industries such as textiles (cotton, jute), food processing, sugar, and beverages.
7. Inter-sectoral Linkages: Generates demand for fertilizers, machinery, transport, logistics, and cold chain infrastructure.
8. Inclusive Growth Enabler: Plays a vital role in poverty reduction and women’s employment through allied activities.

Structural Challenges in Agriculture

1. Low Productivity: Yields per hectare for key crops are below global standards due to poor seed quality, outdated techniques, and fragmented holdings.
2. Low Farm Incomes: Average income per farmer remains inadequate, leading to agrarian distress and indebtedness.
3. Water Stress: Overexploitation of groundwater and inefficient irrigation practices have made agriculture water-intensive and unsustainable.
4. Soil Degradation: Excessive chemical use and mono-cropping have led to loss of soil fertility and organic content.
5. Climate Vulnerability: High exposure to droughts, floods, and erratic rainfall due to climate change increases risk and uncertainty.
6. Post-Harvest Losses: Inadequate storage, cold chain, and processing infrastructure cause 15–20% loss in perishables.
7. Market Access Limitations: Small farmers face hurdles in accessing remunerative markets due to lack of transport, awareness, and digital tools.
8. Land Fragmentation: Decreasing landholding size affects mechanization, productivity, and economies of scale.

Way Forward and Recommendations

1. Promote Value Addition and Agri-Exports: Enhance food processing infrastructure and branding to tap global markets and boost farmers’ income.
2. Bridge Yield Gaps: Increase productivity by adopting high-yield varieties, precision farming, and efficient input use.
3. Enhance Farmer Incomes: Diversify income sources through allied sectors (dairy, poultry, beekeeping) and ensure MSP effectiveness.
4. Strengthen Agri-R&D and Extension Services: Invest in agri-research, climate-resilient technologies, and last-mile dissemination of knowledge.
5. Improve Storage and Market Linkages: Expand warehousing, cold chains, and digital platforms like eNAM to reduce post-harvest losses.
6. Inclusive Growth in Allied Sectors: Promote sustainable fisheries, floriculture, and horticulture through targeted schemes and credit support.
7. Encourage Sustainable and Climate-Resilient Farming: Support practices like organic farming, micro-irrigation, agroforestry, and renewable energy in agriculture.

Conclusion

India’s agriculture and allied sectors have witnessed commendable growth in output, diversification, and infrastructure development over the past decade. However, persistent challenges such as low productivity, climate vulnerability, and income disparities continue to hinder inclusive growth. With nearly half the population dependent on agriculture, its role in ensuring food security, livelihoods, and economic stability remains critical. Strategic investments in value addition, innovation, and sustainable practices are essential. A future-ready, resilient agriculture sector is key to driving India’s rural transformation and long-term development.