India's farm sector has clocked robust growth on the back of govt schemes: Economic Survey

NEW DELHI:

The agriculture sector in India has shown robust growth in recent years, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges, according to the Economic Survey 2024-25.

 

The survey, tabled in the Parliament on Friday, pointed out that in the second quarter of FY25, the agriculture sector recorded a growth rate of 3.5 per cent. This performance represents a recovery compared to the previous four quarters, during which growth rates varied from a modest 0.4 per cent to 2.0 per cent.

 

The recent rise in growth rate can be attributed to improved conditions, potentially driven by favourable weather patterns, advancements in agricultural practices, and government initiatives to enhance productivity and sustainability within the sector, it said.

 

Assured remunerative prices, improved access to institutional credit, crop diversification, support for sustainable practices, and enhancement in productivity have played a crucial role in the sustained growth observed, it further stated.

 

The survey observes that riding on a good monsoon, kharif foodgrain production in 2024 is projected at 1647.05 Lakh Metric Tonnes (LMT), suggesting an increase of 89.37 LMT compared to the previous year and 124.59 LMT above the average kharif foodgrain output which bodes well for food security.

 

Agricultural income has increased at 5.23 per cent annually over the past decade, compared to 6.24 per cent for non-agricultural income and 5.80 per cent for the overall economy, according to the survey.

 

India's agriculture is characterised by diversity, with performance varying significantly across different segments and states. As a major global cereal producer, India accounts for 11.6 per cent of the world's total output. However, crop yields in the country are considerably lower compared to those of other leading producers, underscoring the need for productivity improvements.

 

High-value sectors such as horticulture, livestock, and fisheries have emerged as the primary contributors to the overall growth of agriculture. Among these, the fishery sector has demonstrated the highest compound annual growth rate (CAGR) at 13.67 per cent, followed by livestock with a CAGR of 12.99 per cent during FY15 to FY23 (at current prices).

 

The crop sector has experienced a modest compound annual growth rate (CAGR) of 2.1 per cent, from FY13 to FY22. This increase is also largely driven by notable increases in the production of fruits, vegetables, and pulses.

 

However, the survey points out that the slower growth rate of oilseeds at 1.9 per cent raises concerns, especially considering India’s heavy reliance on imports to satisfy domestic edible oil demands.

 

The survey also highlights that climate variability can present significant challenges; however, farmers with diverse income streams are better positioned to navigate these uncertainties. Allied activities such as animal husbandry, fisheries or agroforestry, can enable the farmers to mitigate the risks effectively.

 

There are also various government initiatives such as the Per Drop More Crop (PDMC) scheme and various actions under the National Mission on Sustainable Agriculture (NMSA), the Digital Agriculture Mission and the e-National Agriculture Market (e-NAM) that are specifically designed to address these challenges, the survey added.

 


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