Synopsis
The Economic Survey 2024-25 highlights India's agriculture sector's robust growth, averaging 5% annually from FY17 to FY23. Factors contributing include government initiatives, improved weather, and diverse income sources for farmers.Key Takeaways
- 5% annual growth in agriculture from FY17 to FY23.
- 3.5% growth in FY25 Q2.
- Projected kharif production of 1647.05 LMT for 2024.
- 13.67% CAGR in fisheries sector.
- Concerns over slow growth in oilseeds at 1.9%.
New Delhi, Jan 31 (NationPress) The agriculture sector in India has experienced significant growth over the past few years, averaging 5 percent annually from FY17 to FY23, showcasing resilience in the face of challenges, as noted in the Economic Survey 2024-25.
The report, presented in Parliament on Friday, highlighted that during the second quarter of FY25, the agriculture sector achieved a growth rate of 3.5 percent. This marks a recovery from the previous four quarters, where growth rates fluctuated between 0.4 percent and 2.0 percent.
The recent growth surge is likely due to improved conditions, which may have been influenced by favorable weather, advancements in agricultural techniques, and government efforts to boost productivity and sustainability.
Key factors contributing to this sustained growth include assured remunerative prices, enhanced access to institutional credit, crop diversification, support for sustainable practices, and productivity improvements.
The survey predicts that, aided by favorable monsoon conditions, kharif foodgrain production in 2024 is expected to reach 1647.05 Lakh Metric Tonnes (LMT), reflecting an increase of 89.37 LMT compared to last year and 124.59 LMT above the average kharif foodgrain yield, which is promising for food security.
Over the past decade, agricultural income has grown at 5.23 percent annually, in contrast to 6.24 percent for non-agricultural income and 5.80 percent for the overall economy, as per the survey.
India's agriculture is marked by diversity, with significant performance variations across different segments and states. As a major global cereal producer, India contributes 11.6 percent to the world’s total output. However, crop yields in India are substantially lower than those of other leading producers, highlighting the urgent need for productivity enhancements.
High-value sectors such as horticulture, livestock, and fisheries have emerged as the main drivers of agricultural growth. Notably, the fishery sector has recorded the highest compound annual growth rate (CAGR) at 13.67 percent, followed by livestock at 12.99 percent during FY15 to FY23 (current prices).
The crop sector has seen a modest CAGR of 2.1 percent from FY13 to FY22, largely due to notable increases in the production of fruits, vegetables, and pulses.
However, the survey raises concerns regarding the slower growth rate of oilseeds at 1.9 percent, especially given India's heavy reliance on imports to meet domestic edible oil needs.
Climate variability remains a significant challenge; nevertheless, farmers with diverse income sources are better equipped to handle these uncertainties. Activities such as animal husbandry, fisheries, and agroforestry enable farmers to effectively manage risks.
Various government initiatives, including the Per Drop More Crop (PDMC) scheme, actions under the National Mission on Sustainable Agriculture (NMSA), the Digital Agriculture Mission, and the e-National Agriculture Market (e-NAM), have been implemented to tackle these challenges, as noted in the survey.
