India’s Agriculture Sector Growth Rate has demonstrated a remarkable response to resilience in recent years marked by consistent various government initiatives to enhance productivity, promote crop diversification, and increase farmers’ income, states the Economic Survey 2024-25, tabled by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today.
The Economic Survey highlights that the ‘Agriculture and Allied Activities sector has long been the backbone of the Indian economy, playing a vital role in national income and employment in India’s Agriculture Sector Growth Rate. In recent years, the agriculture sector in India has shown robust growth, averaging 5 percent annually from FY17 to FY23, demonstrating resilience despite challenges. In the second quarter of the 2024-25 fiscal year, the agriculture sector recorded a growth rate of 3.5 percent. The Gross Value Added (GVA) of agriculture and related sectors has improved from 24.38 percent in the fiscal year FY15 to an impressive 30.23 percent by FY23. Consistent and stable growth of agriculture at around 5 percent, with a 20 percent share of overall GVA in the economy, will contribute 1 percent growth to GVA.
India’s Agriculture Sector Growth Rate Economic Survey notes that the kharif foodgrain production in 2024 is projected to reach 1647.05 Lakh Metric Tonnes (LMT), which is an increase of 89.37 LMT compared to the previous year. Agricultural income has increased at 5.23 percent annually over the past decade, the survey adds.
The Economic Survey states that the government is implementing a range of initiatives aimed at enhancing agricultural productivity and increasing farmers’ incomes, in alignment with the recommendations put forth in the Doubling Farmers’ Income (DFI) Report 2016. This report highlighted essential strategies for improving crop and livestock productivity, boosting cropping intensity, and diversifying into high-value crops.
Minimum Support Price
The Economic Survey states that in the Union Budget of 2018-19, the government decided the principle of fixing MSP at a level of at least 1.5 times the weighted average cost of production for these crops. The government has raised the MSP for Nutri cereals (Shree Anna), pulses, and oilseeds as part of these initiatives. For the fiscal year FY25, the MSP for Arhar and Bajra has been increased by 59 percent and 77 percent over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89 percent, while rapeseed has seen an impressive increase of 98 percent.
Irrigation Development
The Economic Survey states that the government has prioritized irrigation development and water conservation practices to enhance access to irrigation facilities. Since the FY16 fiscal year, the government has been implementing the Per Drop More Crop (PDMC) initiative, a component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), to promote water efficiency.
Financial assistance is provided at 55 percent of the total project cost for small and marginal farmers, and 45 percent for other farmers for installation of micro irrigation under PDMC. From FY16 to FY25 (end of Dec. 2024), ₹ 21968.75 crore was released to states for implementation of the PDMC Scheme and an area of 95.58 lakh ha has been covered which is about 104.67 percent higher as compared to the Pre-PDMC period. The Micro Irrigation Fund (MIF) supports innovative projects through a 2 percent interest subvention to states on loans availed under MIF. Loans amounting to ₹4709 crore have been approved of which ₹3640 crore has been disbursed so far.
Livestock
The Economic Survey states that Allied Sectors have become key drivers of agriculture growth in India’s Growth Rate. The livestock sector alone represented 5.5 percent of the total GVA, reflecting its dynamic growth trajectory, with a robust Compound Annual Growth Rate (CAGR) of 12.99 percent. The economic significance of this sector is clearly illustrated by its escalating output value, which reached an astounding 17.25 lakh crore rupees (equivalent to US$205.81 billion) in FY23.
Among the various branches of livestock production, the milk industry stands out, generating over ₹11.16 lakh crore (US$133.16 billion) in revenue. The government has supported the sector through interventions which include the Rashtriya Gokul Mission for the development and conservation of indigenous bovine breeds, the Livestock Health and Disease Control Program to enhance the well-being of livestock, Multipurpose AI Technicians in Rural India (MAITRIs) to deliver breeding inputs to farmers’ doorstep. In the last 4 years, 38736 MAITRIs have been inducted under Rashtriya Gokul Mission.
Fisheries
The Economic Survey conveys that the government has implemented several initiatives to enhance the fisheries sector’s production which include Pradhan Mantri Matsya Sampada Yojana (PMMSY) to boost aquaculture productivity and improve fisheries management, Fisheries and Aquaculture Infrastructure Development Fund (FIDF) to provide financial support for developing infrastructure in both marine and inland fisheries.
Other initiatives include the establishment of fishing harbors and fish landing centers, and the adoption of innovative production technologies such as cages, Recirculating Aquaculture Systems (RAS), bio flocs, pens, and raceways. Due to these initiatives, total fish production (both inland and marine) has surged to 184.02 lakh tonnes in FY23, up from 95.79 lakh tonnes in FY14.
Furthermore, India’s seafood exports have risen from ₹46,662.85 crore in FY-20 to ₹60523.89 crore in 2023-24, reflecting a growth of 29.70 percent. Under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), the National Fisheries Digital Platform (NFDP) successfully mobilized and registered 16.35 lakh fish producers, workers, vendors, and processors within a short timeframe of just four months.
Floriculture
India’s floriculture industry has grown into a high-performing sector, earning its status as a “sunrise industry” with a 100 percent export orientation. With subsidy support and crop loan financing, it is a promising venture for marginal and small landholdings, which constitute more than 96 percent of the total landholdings with 90.9 percent of marginal landholdings and 63 percent of the area of cultivation under floriculture. The exports increased by 14.55 percent in April-October FY25 over April-October FY24. In FY24, approximately 297 thousand hectares were dedicated to floriculture, yielding an estimated 2,284 thousand tonnes of loose flowers and 947 thousand tonnes of cut flowers. During the same period, India exported 19,678 metric tonnes of floriculture products, earning ₹717.83 crore (USD 86.63 million).
Horticulture
Economic Survey states that India is a leading exporter, shipping 343,982.34 MT of fresh grapes worth ₹3,460.70 crore (USD 417.07 million) globally in 2023-24. Key grape-growing states are Maharashtra, Karnataka, Tamil Nadu, and Mizoram. Maharashtra leads in production, contributing over 67 percent of total output with the highest productivity in 2023-24. Grape cultivation has significantly improved the livelihoods of Nashik farmers where export-quality grapes fetch higher prices (₹65-70/kg) than domestic markets. Farmers have adopted advanced technologies like real-time monitoring systems to ensure optimal grape quality.
Food Processing
The Economic Survey highlights that in the fiscal year FY24, the value of agri-food exports, which includes processed food exports, reached USD 46.44 billion, constituting roughly 11.7 percent of India’s total exports. Notably, the share of processed food exports within agri-food exports has risen from 14.9 percent in FY18 to 23.4 percent in FY24. Pradhan Mantri Kisan Sampada Yojana (PMKSY) aims to promote the overall advancement of the food processing industry.
PMKSY
As of 31 October 2024, 1,079 PMKSY projects have been completed. Under the Production Linked Incentive Scheme for Food Processing (PLISFPI), by 31 October 2024, 171 applications had been approved, with beneficiaries investing ₹8,910 crore and receiving ₹1,084.01 crore in incentives. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has received 407,819 applications, with loans totaling ₹8.63 thousand crore sanctioned to 108,580 applicants, as of 31 October 2024. Additionally, the program has successfully trained 672 Master Trainers, 1,120 District Level Trainers, and 87,477 beneficiaries across 36 states and union territories.
Food Management
To enhance the efficiency of the Public Distribution System (PDS), the government is fully committed to achieving 100 percent e-KYC compliance nationwide in India’s Agriculture Sector relating to Growth Rate. This aligns with the One Nation, One Ration Card (ONORC) scheme, allowing beneficiaries to complete electronic Know Your Customer e-KYC anywhere, regardless of their home state. Beneficiaries can authenticate their Aadhaar biometrics at any Fair Price Shop (FPS). To facilitate post-harvest lending for farmers, especially small and marginal farmers, the government has approved the Credit Guarantee Scheme for electronic-negotiable warehouse receipt (e-NWR)-based Pledge Financing (CGS-NPF). Under this scheme, farmers can obtain loans against e-NWRs issued for agricultural and horticultural commodities stored in accredited warehouses. The scheme covers the loss incurred by the bank due to credit and warehouseman risk. The scheme will help in increasing postharvest lending against e-NWRs and thereby play a role in improving farmers’ income.