Agriculture and Allied Industries
Agriculture and its allied industries form the backbone of rural economies and play a critical role in food security, employment, and sustainable development. In countries like India, this sector not only sustains over half the population but also contributes significantly to GDP, exports, and raw material supply for various industries.
The allied sectors—including animal husbandry, fisheries, forestry, and horticulture—complement core agricultural activities and diversify income sources for farmers. Rapid technological advancements, government schemes, and agribusiness innovations are transforming traditional farming into a modern, market-linked value chain.
Major Product Categories
1. Crop Production
- Food grains (rice, wheat, millets, pulses)
- Cash crops (cotton, sugarcane, tobacco, jute)
- Oilseeds (mustard, soybean, sunflower, groundnut)
- Spices (turmeric, cardamom, cumin, chili)
- Vegetables and fruits (potato, onion, tomato, mango, banana, citrus)
2. Horticulture
- Floriculture (cut flowers, nursery plants)
- Plantation crops (tea, coffee, rubber, coconut)
- Medicinal & aromatic plants
3. Animal Husbandry
- Dairy (milk, curd, paneer, ghee)
- Poultry (eggs, broilers, chicks)
- Meat products (mutton, pork, beef, processed meat)
- Animal feed and fodder
4. Fisheries and Aquaculture
- Inland and marine fish (rohu, catla, shrimp, tuna)
- Fish seed and hatchery products
- Processed seafood (frozen fish, prawns)
5. Forestry and Agroforestry
- Timber and wood products
- Non-timber forest products (honey, lac, bamboo, resins)
6. Agri Inputs and Machinery
- Seeds, fertilizers, and pesticides
- Irrigation systems (drip, sprinkler)
- Farm machinery (tractors, tillers, harvesters)
- Greenhouse & polyhouse structures
7. Agri Logistics and Processing
- Cold storage & warehousing
- Food processing (grains, fruits, dairy, meat)
- Agri packaging & grading
8. Organic and Natural Farming
- Organic produce
- Bio-fertilizers and natural pest control
India’s agriculture and allied industries are experiencing significant growth, driven by policy reforms, export expansion, and technological advancements. Here’s an overview of the current market landscape:
Market Size & Growth Outlook
Employment & GDP Contribution: Agriculture employs about 45% of India’s workforce and contributes roughly 18% to the national GDP.1
Current Market Size: In 2024, India’s agriculture sector was valued at approximately USD 457.26 billion. 2
Projected Growth: The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.9%, reaching around USD 737.77 billion by 2034.
According to the Ministry of Statistics and Programme Implementation (MoSPI), the value of output in agriculture and allied sectors is distributed as follows:3
- Crops: 54.3%
- Livestock: 30.9%
- Forestry: 7.9%
- Fishing & Aquaculture: 6.9%
Notably, the crop sub-sector’s share has declined from 62.4% in 2011–12 to 54.3% in 2022–23, indicating a diversification within the sector.4
Trade & Export Trends5
Trade Agreements: India is actively engaging in trade negotiations, such as the interim tariff deal with the U.S., aiming to reduce tariffs on agricultural products and enhance market access.
Agricultural Exports: India’s agricultural exports reached $48 billion in the fiscal year 2023–24, with processed food exports accounting for $8 billion.
Export Growth: There has been a 30% year-on-year growth in agricultural exports, signaling a robust recovery and increased global demand for Indian agricultural products.
Government Initiatives & Investments6
- Budget Allocation: For the fiscal year 2025–26, India plans to increase its agriculture budget by over 15%, allocating approximately $20 billion to support rural incomes and control inflation.
- Infrastructure Development: Investments are being made in high-yield seed varieties, storage facilities, supply infrastructure, and the promotion of pulses, oilseeds, vegetables, and dairy production.
Food Processing Incentives: The government is providing incentives totaling 109 billion rupees to support food processing firms through 2027, aiming to boost value addition and exports.
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