Agriculture is defined as the art, science and business of producing crops and livestock for economic purpose. Livestock, fisheries poultry comes under the allied agricultural activities.
Agriculture is the primary source of livelihood for about 58% of India’s population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20.
According to the Food and Agriculture Organization, “India is the world’s largest producer of milk, pulses and jute, and ranks as the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit and cotton. It is also one of the leading producers of spices, fish, poultry, and livestock and plantation crops.”
Agriculture has been the mainstay of Indian economy since ages. Even before independence, agriculture was a significant sector due to its high share in employment and livelihood creation. Due to its share in the economy and dependence of about half of the population on agriculture, it is considered as the backbone of the country and India is known as an agrarian country.
Market Size
The Economic Survey of India 2020-21 report stated that in FY20, the total food grain production in the country was recorded at 296.65 million tonnes—up by 11.44 million tonnes compared with 285.21 million tonnes in FY19
For FY22, the government has set a record target for farmers to raise food grain production by 2% with 307.31 million tonnes of food grains. In FY21, production was recorded at 303.34 million tonnes against a target of 301 million tonnes.
Production of horticulture crops in India was estimated at a record 326.6 million metric tonnes (MMT) in FY20 as per third advance estimates, an increase of 5.81 million metric tonnes over FY20.
India has the largest livestock population of around 535.78 million, which translates to around 31% of the world population
Milk production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20, registering a growth of 10% y-o-y.
After remaining stagnant for the last three years, the export of agriculture and allied products during 2020-21 grew 17.34 per cent to $41.25 billion.
Contribution of Agriculture Sector towards GDP
As per Provisional Estimates of Annual of National Income, released by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on 31st May 2021, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country during the last three years at current prices is given below.
Year |
Percentage Share of GVA of Agriculture and Allied sector to Total
Economy |
2018-19 |
17.6 |
2019-20 |
18.4 |
2020-21 |
20.2 |
As per First Revised Estimates of National Income for 2019-20 released on on 29th January 2021, Gross Capital Formation (GCF) in agriculture and allied sectors at current prices during the last three years (latest available) is given below.
Year |
Gross Capital Formation (GCF) of Agriculture, forestry and fishing at
Current Price (in Rs. Crore) |
2017-18 |
3,62,706 |
2018-19 |
4,07,842 |
2019-20 |
4,46,044 |
Cropping Seasons in India
There are three distinct crop seasons in the northern and interior parts of the country, namely Kharif, rabi, and Zaid.
- The Kharif season: The crops which are grown in the Kharif season require a good amount of water, thus the sowing of Kharif crops largely coincides with the onset of the Southwest Monsoon.
- The Rabi season: The sowing of rabi crops begins with the onset of winter in October- November and the harvesting is done in March-April. The celebration of the festival Holi can be related to a good harvest in the month of March- April.
- The Zaid season: It is a short duration summer cropping season beginning after harvesting of rabi crops, the cultivation of watermelons, cucumbers, vegetables, and fodder crops during this season is done on irrigated lands.
- This leads to falling average landholdings’ size of farmers, which has come down from 1.2 ha to about 1.08 ha.
- Due to small holdings caused by fragmentation, small and marginal farmers are forced to sell their produce at the farm gate itself.
- This is especially so in states that have a weak network of APMC mandis.
Agricultural Production (India’s Position in World Agriculture)
Agricultural
Production (India’s
Position in World Agriculture) |
Largest producer
of milk. |
Largest producer
of millets in the world |
Largest producer
of jute. |
Largest producer
of ginger. |
Largest producer
of bananas. |
Largest producer
of castor oil seeds. |
Largest producer
of mangoes. |
Largest producer
of safflower oil seeds. |
Largest producer
of papayas. |
Largest producer
of cottonseed (As per International Cotton Advisory
Committee (ICAC) report for the month of March 2017) |
Second largest
producer of tea, the first position being
held by China. |
Second largest
producer of sugarcane, the first position being held by Brazil. |
Second largest
producer of wheat, the first position being
held by China. |
Second largest
producer of onions, the first position being
held by China. |
Second largest
producer of potatoes, the first position
being held by China. |
Second largest
producer of garlic, the first position being
held by China. |
Second largest
producer of rice, the first position being
held by China. |
Second largest
producer of cement., next to China. |
Second largest
producer of silk, the first position being
held by China. |
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