AGRICULTURE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Agriculture Industry in India
- Industry Clusters
- Growth Drivers
- Key Players
- Market Stats
India has the 10th-largest arable land resources in the world and accounts for 7.39% of the global agricultural output. The agriculture sector is one of the biggest sectors in India and a key contributor accounting for about 18% of the GDP. The Gross Value Add (GVA) for the agriculture sector was USD 274 billion in 2018, with the food grain production estimated at 284.83 Million tonnes. India lies within several agro-climatic zones which puts it in 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. 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 mechanization 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.
- The Agriculture Export Policy, 2018 approved by the Government of India in December 2018 aims to increase India’s agricultural exports to US$ 60 billion by 2022.
- The Union Budget 2019 has identified Agriculture Sector as one of the key drivers of the economy.
- Under the Agricultural Marketing Infrastructure (AMI) scheme 4 million MT of storage capacity & 400 other marketing Infrastructure projects are targeted by 2019-20.
- The Government has set its goals on doubling the farm income by 2022.
- The Indian government has done some major investments to improve irrigation systems.
- The Government started an investigation on providing air cargo in order to promote agriculture exports from India.
- Several Government Schemes to support Agriculture in India
- Increasing demand for food supply and quality.
Key Players in India
- 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
- 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
- India is the largest producer, exporter, and consumer of spices
- The sector is growing at a rate of approximately 2% on a year on year basis.
- Agricultural exports from India accounted for USD 38.21 billion in FY18
- Indian tractor market to grow 8-10% in FY19
- The Agriculture industry employs 50% of India’s workforce.
- The Agriculture sector accounts for 18% of the country’s GDP
- Agricultural machinery market predicted to grow at a CAGR of 8% during 2015-2019
- Farm equipment sector estimated at approximately $6.5 billion