AGRICULTURE SECTOR OVERVIEW

Statistics, news & updates: everything you need to know about the Agriculture Industry in India

Agriculture Industry India

Summary

updated in May 2017

The Agriculture sector is expected to register a growth of about 4.1% in the current financial year. Together with fishery and forestry, Agriculture contributes 16-17% to India’s GDP. Over 58% of India’s population is dependent on it for livelihood or employment. India lies within several agro-climatic zones which puts it in a favorable position for cultivation of a wide range of fruits, vegetables and spices. And the whole industry is set for further growth as household incomes, food processing and agricultural exports increase. India is among the fastest growing markets for agricultural equipment as farmers are adopting modern agricultural technologies to increase their yield due to the increased demand for food supply. The Government has proposed a number of incentives, such as the creation of hubs for hi-tech farm equipment and financial assistance for farmers to buy machinery, to support industry growth. With it, the Government also wants to make India self-sufficient in food grain production and increase farm income. With the current farm mechanisation of only 40%, there is various scope for foreign companies in every segment of Agriculture, farm machinery, equipment and allied sectors to expand in India.

Please see our latest Agriculture Industry Newsletter here!

Map- Industry Clusters

Growth Drivers

  • Cumulative FDI investments into agriculture services and machinery from April 2000 – March 2016 were $2.27 billion
  • Union Budget 2017-18 allocation to rural, agriculture, and allied sector hiked by 24% to about $27.81 billion
  • Several Government Schemes to support Agriculture in India
  • Increasing demand for food supply and quality
  • India is the 2nd largest fruit and sugar producer worldwide

Key Players in India

International

  • Hindustan Unilever Ltd., Nestle, Monsanto India, DuPont India, Lemken India Agro Equipments Pvt. Ltd., Advanta Ltd., Kubota, SDF Group, Kuhn, Lovol, Daedong, Deere& Company, Claas, CNH Industrial, AGCO

National

  • Nuziveedu Seeds, Amul, Godrej Agrovet, Rallies India, Britannia Industries Ltd., NSL, GDP Crop Science, Nupro, Rei Agro Ltd., Escorts Group, TAFE, VSt Tillers Tractors, Mahindra&Mahindra

Market Stats

  • India is the largest producer, exporter and consumer of spices
  • Agriculture and allied sectors’ GDP in the FY16 was recorded at $244.74 billion
  • Agricultural exports constitute 10% of the country’s exports
  • Agricultural machinery market predicted to grow at a CAGR of 8% during 2015-2019
  • Farm equipment sector estimated at approximately $6.5 billion