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Overview of Agriculture Industry in India

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AGRICULTURE SECTOR OVERVIEW-2020

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

 

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

To begin with, India has the 10th-largest arable land resource in the world and accounts for 7.39% of the global agricultural output. As a matter of fact, the agriculture sector is one of the biggest sectors in India. In fact, it is a key contributor accounting for about 18% of the GDP. Additionally, the Gross Value Added (GVA) for the agriculture sector was USD 274 billion in 2018, with the food grain production estimated at 284.83 million tonnes. Conversely, India lies within several agro-climatic zones. Therefore due to this, it enjoys a favorable position for the 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.
Even more, India is among the fastest-growing markets for agricultural equipment. Not only this but because the farmers are adopting modern agricultural technologies to increase their yield. Hence, they aim to cater to the increased demand for food supply. Further, the Government has proposed a number of incentives in this sector. Although, these include creating hubs for hi-tech farm equipment and financial assistance for farmers to buy machinery and support industry growth. Besides, the Government also wants to make India self-sufficient in food grain production and increase farm income. Moreover, with the current farm mechanisation of only 40%, there is a huge scope for foreign companies to expand in India. Above all, they can enter in every segment of the Agriculture industry, farm machinery, equipment, and allied sectors to expand in India.

Covid Impact

In 2020, India’s agriculture industry is expected to be worth INR 63,506 billion. Agriculture is an important component of the Indian economy, both in terms of GDP contribution and as a source of employment for the majority of the country’s population. The covid-19 impact was not as concerning as other industrial sectors. The most recent quarterly GDP estimates post-COVID scenario demonstrates the robustness and resilience of Indian agriculture, which is the only sector to grow by 3.4 percent during the fiscal year (FY) 2020–21. (Quarter 1: April 2020 to June 2020). At the same time, the immediately preceding quarter’s growth was estimated at 5.9 percent was estimated at 5.9 percent, a 2.5 percent point decrease. This data intends to show the resilience and robustness of Agricultural India in India. The government is too working to ease farmers under Pradhan Mantri Fasal BimaYojana (PMFBY), total claims of Rs.30802.02 crore have been settled for 256.29 lakh farmers during the COVID-19 pandemic from March 2020 to January 2021.

Market Stats

  • As a matter of fact, the agriculture industry in India accounts for 15.87% of India’s GDP.
  • As per the Indiaeconomic survey 2018, the production of agriculture activity in India stands at $375.61 billion. Moreover, India is 2nd larger producer of agriculture products. It accounts for 7.39% of the total global agricultural
  • Alternatively, Gross Value Added by agriculture, forestry and fishing was approximately 2.7% in the fiscal year 2019.Let alone in 2018-19, India registered a record food grain production of 285.17 million tonnes.
  • Additionally, total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18. The agricultural exports from India were US$ 38.54 billion in FY19.
  • Not only this but India is the largest producer, consumer and exporter of spices and spice products.
  • As a matter of fact, the Agriculture Industry in India was valued at USD 32.2 billion in 2018 and is expected to register a CAGR of 4.1% during the forecast period (2019-2024).

Map – Industry Clusters

Growth Drivers

  • Agriculture is one of the largest industries in India. In fact, it is ranked fifth in terms of production, consumption, export and expected growth.
  • Further, India is the second largest fruit producer inthe world.
  • Not to mention this Agriculture remains a primary means of livelihood for more than 50% to 60% of India’s total population.
  • Besides, in FY 2019, agriculture exports were US$ 38.54 billion.
  • Hence, as per the Economic Survey, India’s gross domestic product (GDP) growth is expected to strongly rebound to 6-6.5 per cent in 2020-21.

Key Players in India

National

  • Rallis India limited
  • Nuziveedu seeds limited
  • Advanta Limited
  • Poabs organic Estates
  • National Agro Industries
  • Godrej Agrovet limited
  • Rasi Seeds
  • Jain Irrigation Systems

Sub-Industries

  • Agricultural & Farm Machinery
  • Pesticide, Fertiliser & agrochemicals

International

  • BASF
  • CNH Industrial
  • Bayer AG
  • Syngenta AG
  • DowDuPont
  • Deere & Company
  • CLAAS
  • Archer Daniels Midland Company
  • Cargill
  • Lemken India Agro Equipment Pvt. Ltd.
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