Advantage India
Robust
Demand
*India targets Rs. 8,549 crore (US$ 1 billion) in turmeric exports by 2030, with the Turmeric Board supporting farmers, maintaining a 58-66% global market share.
*Food grain production has surged from 204.6 million tonnes (2004-05) to an estimated 376.56 million tonnes (2025-26), with enhanced productivity and Minimum Support Price (MSP) revisions ensuring better farmer incomes.
*In FY25, India’s fresh fruit exports have grown over 18% in value to Rs. 9,934.91 crore (US$ 1,166.07 million) from FY24, reaching 85 countries.
Attractive
Opportunities
*India has identified 384 sites for seaweed farming, spanning 24,707 hectares along its 11,099 km coastline. Over the past five years (2020–2025), projects valued at Rs. 198.17 crore (US$ 22.92 million) have received approval for seaweed cultivation and associated activities.
*India can double maize production to 86 million tonnes by 2047, offering attractive opportunities through high-yield seeds and crop diversification.
*The Union Government has approved an additional 2.8 million tonnes of rice from the Food Corporation of India (FCI) for ethanol production in 2024–25, increasing the total allocation to 5.2 million tonnes, despite continued concerns about the use of food grains for fuel production instead of food security purposes.
Policy
Support
*The Union Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) worth Rs. 24,000 crore (US$ 2.79 billion) from FY26 to boost farm productivity, irrigation, credit access, and post-harvest infrastructure for 1.7 crore farmers across 100 districts
*From 2014–15 to 2025–26, a total of 25,689 Custom Hiring Centres (CHCs) have been established under the Sub-Mission on Agricultural Mechanisation (SMAM) scheme, including 558 CHCs during 2025–26 (as of 30 October 2025).
*The Government of India has allocated an outlay of Rs. 1,600 crore (US$ 185.04 million) for 2025–26 under the Pradhan Mantri Krishi Sinchayee Yojana. One of its key objectives is to enhance water delivery infrastructure from existing canals and other sources to designated clusters.
Competitive
Advantage
*Total area under foodgrain crops stood at 142.3 million hectares in 2025–26 rose from 124.3 million hectares in 2014–15 and 120.2 million hectares in 2004–05.
*In 2025, the European Union (EU) has approved 102 additional fishery establishments for the export of India’s marine products, taking the total number of EU-approved Indian seafood export units to 604. This milestone is expected to strengthen India’s position in the European seafood market and mitigate the impact of US tariffs.
Introduction
Agriculture is one of the cornerstones of India’s economy and society, providing a livelihood to nearly 55% of the population. With the world’s second-largest agricultural land area, India is a global leader in farm output. The country has the largest cattle herd (buffaloes), the largest area under wheat, rice, and cotton, and ranks as the world’s top producer of pulses, and spices. India has held the top position in milk production since 1998, currently accounting for 25% of global output. Over the past decade, milk production has risen by 63.56%, from 146.3 million tonnes in 2014-15 to 239.2 million tonnes in 2023-24, achieving an average annual growth rate of 5.7%. It is also the second-largest producer of fruits, vegetables, tea, farmed fish, cotton, sugarcane, wheat, and rice, underscoring its central role in global food supply. India’s agrochemical exports have nearly trebled in the past decade, rising to US$ 3.3 billion in FY25 from US$ 1.3 billion in FY15, making the country the third-largest exporter after China and the United States, according to a report by the Agro-Chemicals Federation of India (ACFI) and Deloitte. The food industry in India is poised for rapid growth, driven by its immense potential for value addition.
The food processing industry alone accounts for 32% of the country’s total food market and ranks fifth globally in terms of production, consumption, exports, and growth potential. Beyond generating employment for millions of farmers, the sector plays a vital role in rural industrialization, supply chain development, and food security.
India’s agricultural output has expanded significantly in the past decade, recording 40% growth and achieving surplus capacity for exports. In FY25, the sector grew by 5.4% year-on-year, supported by record production and higher trade volumes. Agricultural exports touched an all-time high of Rs. 4,50,839.85 crore (US$ 53.24 billion) in FY25, up from Rs. 4,11,772.66 crore (US$ 49.69 billion) in FY24. At current prices, agriculture and allied sectors account for 17.3% of India's GDP (2024-25), reaffirming the sector’s importance to the national economy.
Production levels continue to rise steadily. According to the Third Advance Estimates India’s foodgrain production for 2025-26 is estimated at a record 3,765.63 LMT, up by 3,577.32 LMT from 2024-25, marking a 5.26% increase. Rice production alone is expected to reach 1,540.24 LMT in 2025-26, an increase of 38.40 LMT YoY. Horticulture output has also shown remarkable growth, climbing from 280.70 million tonnes in 2013-14 to 377.78 million tonnes in 2025-26.
Market Size
The exports for principal commodities in FY25 were the following:
- Marine Product: US$ 7.41 billion
- Basmati and Non-Basmati Rice: US$ 12.47 billion
- Spices: US$ 4.34 billion
- Buffalo Meat: US$ 4.06 billion
- Sugar: US$ 2.16 billion
- Miscellaneous processed items: US$ 2.04 billion
- Oil Meal: US$ 1.34 billion
India’s exports of agricultural and processed food products rose by 9.49% YoY to Rs. 4,50,839.85 crore (US$ 53.24 billion) in FY25.
This growth was driven by strong shipments of rice, meat, and fruits. Looking ahead, rice exporters expect sustained demand from West Asia, even as the sector navigates tariff-related challenges in the US.
As on October 3, 2025, the area sown under Kharif crops is 112.15 million hectares as compared to 111.49 million hectares during the corresponding period of last year. In 2024-25, India exported 20.19 million tonnes of rice worth Rs. 1,05,720.04 crore (US$ 12.47 billion) to more than 172 countries.
India's wheat stocks highest in three years as of March 2025. The Food Corporation of India aims to purchase 31 million tons of wheat in 2025. Rice reserves are also high, potentially boosting exports.
India shipped 16,98,170 metric tonnes of seafood worth Rs. 62,408 crore (US$ 7.45 billion) in FY25, with frozen shrimp remaining the leading export by volume and value. EU-bound exports reached 2,15,080 metric tonnes worth Rs. 9,430 crore (US$ 1,125.6 million), led by shrimp, cuttlefish, and squid in frozen form.
Foreign investment has also supported growth in the sector. From April 2000-June 2025, India received Rs. 22,071.9 crore (US$ 3.48 billion) in FDI inflows into the agriculture services sector. Additionally, the agricultural machinery sector attracted Rs. 12,298.5 crore (US$ 1.74 billion) in FDI inflows during the same period. The Indian food processing industry has cumulatively attracted a Foreign Direct Investment (FDI) equity inflow of about Rs. 89,918.6 crore (US$ 13.49 billion) between April 2000-June 2025.
During FY25, processed vegetables accounted for export of Rs. 7,223.85 crore (US$ 853.89 million), miscellaneous processed items accounted for Rs. 17,236.94 crore (US$ 2,038.16 million) and processed fruits & juices accounted for Rs. 8,515.23 crore (US$ 1,005.24 million). This growth is supported by rising incomes in both rural and urban areas, as well as rapid population expansion that continues to fuel demand for diverse agricultural and processed products.
The sector is also witnessing increasing adoption of modern technologies. Tools such as blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing are being leveraged to enhance efficiency and transparency. Alongside, various e-farming applications are enabling farmers and agribusinesses to improve productivity and market access.
Investment
Some major investments and developments in agriculture are as follows:
- The Government of India has substantially increased its budget allocations for the sector, from Rs. 11,915.22 crore (US$ 2.60 billion) in 2008-09 to Rs. 1,62,671 crore (US$ 18.49 billion) in budget 2026, underscoring its strong commitment.
- The Indian Council of Agricultural Research (ICAR) has entered into a landmark Memorandum of Understanding (MoU) with the National Dairy Development Board (NDDB). This collaboration seeks to harness ICAR's scientific expertise alongside NDDB's extensive grassroots experience to foster innovation, capacity building, and sustainable development throughout the dairy value chain.
- As of January 31, 2026, India has 8,831 cold storages with a combined capacity of 402.87 lakh metric tonnes (MT).
- India's push to become a global hub of natural and organic farming involves extensive farm management services including digital monitoring via Kisan Credit Card benefits and GST reductions on bio-fertilizers.
- The European Union (EU) has approved 102 additional fishery establishments for the export of India’s marine products, taking the total number of EU-approved Indian seafood export units to 604. This milestone is expected to strengthen India’s position in the European seafood market and mitigate the impact of US tariffs.
- The agriculture sector in India is poised to maintain a 4% growth over the next decade, driven by growing product demand, technological adoption, and supportive government measures, as expressed by NITI Aayog members.
- On September 11, 2025, a report highlighted how agritech startups in India are transforming farming by using smart technology like AI, IoT, satellite monitoring, and blockchain to boost productivity, reduce losses, and empower farmers.
- On November 16, 2025, EY published insights on the new agritech paradigm focusing on integration of technology-led innovation, policy enablement, and collaborative growth in India's agricultural ecosystem.
- In Himachal Pradesh, Rs. 81 crore (US$ 9.13 million) water and irrigation projects were unveiled to irrigate over 50,000 kanal of farmland across 28 villages through an extensive pipeline and distribution network, improving irrigation access at the grassroots level.
- India’s Free Trade Agreement with the UK signed on July 24, 2025, grants duty-free access to 95% of its agricultural and processed food exports, including marine products, and is expected to boost agri exports by over 20% in three years, supporting its US$ 100 billion target by 2030.
- India is redirecting record rice stocks towards ethanol production to support its 20% blending target, manage surplus supplies, and strengthen the role of agriculture in clean energy.
- In December 2023, NBCC signed an MoU with the National Cooperative Development Cooperation (NCDC) and NABARD for the construction of (1,469-grain storage units) the world’s largest grain storage plan in the cooperative sector.
- India to host the 27th WAIPA World Investment Conference in New Delhi from December 11-14, 2023.
- In December 2023, Tata-owned Rallis India launched NAYAZINC fertilizer.
- In October 2023, the President of India launched the Fourth Krishi Road map of Bihar.
- In October 2023, Coal India, partnered to invest Rs. 3,095 crore (US$ 371.69 million) in fertiliser JV to boost output.
- Government has set up a special fund called the Food Processing Fund (FPF) of approximately US$ 265 million in the National Bank for Agriculture and Rural Development (NABARD) for extending affordable credit to designated food parks and food processing enterprises in the designated food parks.
- Indians are spending more on processed food, with beverages, refreshments, and processed items accounting for 9.84% of food expenditure in rural areas and 11.09% in urban areas in 2023-24.
- The organic food segment in India is expected to grow at a CAGR of 10% during 2015-¬25 and is estimated to reach Rs. 75,000 crore (US$ 9.1 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.
- The food processing industry supports over seven million jobs across the value chain, directly and indirectly, while enabling rural industrialization and reducing post-harvest losses. According to the Viksit Bharat@2047 report, India's food processing sector will grow significantly, reaching US$ 1.1 trillion by FY35, US$ 1.5 trillion by FY40, US$ 1.9 trillion by FY45, and US$ 2.15 trillion by FY47. The government’s focus is on supply chain-related infrastructures like cold storage, abattoirs and food parks.
- India’s smart agriculture market reached US$ 860.7 million in 2025 and is projected to grow at a CAGR of 18.93% to US$ 4,281.7 million by 2034, driven by rising demand for precision agriculture technologies. By 2025, Indian agritech companies are likely to witness investments worth US$ 30-35 billion.
- The performance of the agriculture and allied sector has been buoyant over the past several years, much of which is on account of the measures taken by the government to augment crop and livestock productivity, ensure certainty of returns to the farmers through price support, promote crop diversification, improve market infrastructure through the impetus provided for the setting up of farmer-producer organizations and promotion of investment in infrastructure facilities through the Agriculture Infrastructure Fund.
Government Initiatives
Some of the recent major Government initiatives in the sector are as follows
- From 2014–15 to 2025–26, a total of 25,689 Custom Hiring Centres (CHCs) have been established under the Sub-Mission on Agricultural Mechanisation (SMAM) scheme, including 558 CHCs during 2025–26 (as of 30 October 2025).
- The Government has approved the allocation of 52 lakh metric tonnes (LMT) of surplus rice from the Food Corporation of India (FCI) for ethanol production, 26 LMT each for the Ethanol Supply Year (ESY) 2024-25 (November 1, 2024, to October 31, 2025).
- The Union Government has approved an additional 2.8 million tonnes of rice from the Food Corporation of India (FCI) for ethanol production in 2024–25, increasing the total allocation to 5.2 million tonnes, despite continued concerns about the use of food grains for fuel production instead of food security purposes.
- The Pradhan Mantri Kisan Maandhan Yojana (PMKMY) provides pension schemes for farmers. Over 11 crore farmers have benefited from PM-KISAN, while 23.61 lakh farmers had enrolled in PMKMY as of 31 October 2024.
- The Union Cabinet has approved the extension of the Animal Husbandry Infrastructure Development Fund (AHIDF), to be executed under the Infrastructure Development Fund (IDF), with a total allocation of Rs. 29,610.25 crore (US$ 3.77 billion) over three years until 2025-26. In 2024, the AHIDF has generated significant impact by establishing an additional 141.04 lakh litres per day (LLPD) of milk processing capacity.
- The government has entered into agreements with 26 overseas and domestic companies at the 'World Food India' summit, securing investments worth Rs 1.02 lakh crore (US$ 11.80 billion) for India's food processing sector.
- The National Programme for Organic Production (NPOP) is anticipated to support 2 million farmers, with organic exports projected to surpass US$ 1 billion by 2025-26.
- The Uttar Pradesh government is promoting farmers' economic prosperity via procurement and direct payments. It is facilitating comprehensive support by establishing 4,645 procurement centres to enable paddy sales at the minimum support price.
- The Government has launched the ‘Bharat VISTAAR’ AI initiative to empower Indian farmers. This artificial intelligence-based scheme offers a single-window platform delivering instant, technology-driven agricultural advisory services. Farmers can access real-time mandi prices, technical advice, and scheme integration through the system.
- The Government of India has detailed significant progress in revolutionising agriculture from 'field to farm' via strategic infrastructure investments exceeding Rs. 1 lakh crore (US$ 11.37 billion) under the Agriculture Infrastructure Fund (AIF).
- The Government of India has allocated an outlay of Rs. 1,600 crore (US$ 185.04 million) for 2025–26 under the Pradhan Mantri Krishi Sinchayee Yojana. One of its key objectives is to enhance water delivery infrastructure from existing canals and other sources to designated clusters.
- A credit-linked subsidy scheme, alongside support for scaling up livestock enterprises (dairy, poultry, and small ruminants), to develop integrated value chains and livestock-focused Farmer Producer Organisations (FPOs). This forms part of a wider array of allied-sector initiatives outlined in the FY26-27 roadmap, with provisions incorporated into FY26 planning and budgeting.
- Between 31 October 2021 and 8 December 2025, the National Cooperative Development Corporation NCDC disbursed a total of Rs 186.48 crore (US$ 21.57 million) in financial assistance to 19,938 dairy cooperatives across nine states.
- The Central government allocated Rs 12,200 crore (US$ 1.39 billion) towards Pradhan Mantri Fasal Bima Yojana (PMFBY) in the Union Budget 2026.
- As of 22 July 2025, the Department of Fisheries has approved fisheries development projects worth Rs. 21,274.16 crore (US$ 2.46 billion) under the Pradhan Mantri Matsya Sampada Yojana. PMMSY continues to be the central pillar of fisheries development, with an allocation of Rs 2,500 crore in 2026–27. As of 05 March 2026, approved activities under the PMMSY include 23,285 hectares of pond area for inland aquaculture, 52,058 reservoir cages, 27,189 fish transportation and handling units, 634 value-added enterprise units (including ice plants and cold storages), and 6,896 fish retail markets and kiosks.
- As of May 2025, Under the Soil Health Management, 97.53 lakh soil samples were collected and 92.87 lakh tested in 2025-26, while 25.79 crore Soil Health Card have been generated since 2015 to guide balanced nutrient management.
- As of September 2025, Rs. 73,155 crore (US$ 8.46 billion) has been sanctioned under the AIF for 1.27 lakh projects, encompassing thousands of warehouses and cold stores. The total project cost for these sanctioned initiatives amounts to Rs. 1.17 lakh crore (US$ 13.53 billion).
- The Agricultural and Processed Food Products Export Development Authority (APEDA) launched its new initiative BHARATI, Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement, during the “Food & Beverages Sector Stakeholders Meeting”.
- Prime Minister Mr. Narendra Modi highlighted India’s rapid transformation in the food processing sector, noting that it has expanded 20 times over the past decade, driven by Central government initiatives such as the Production-Linked Incentive (PLI) scheme and mega food parks. These measures have strengthened India’s role in global food security.
- The Government of India announced a significant reduction in GST on tractors, farm machinery, fertilizers, and other essential agricultural inputs. This GST cut also extends to allied sectors like dairy, aquaculture, and solar-powered equipment. The reform aims to lower cultivation costs, promote mechanization, and enhance rural livelihoods, making agriculture more competitive and sustainable.
- The Prime Minister Mr. Narendra Modi highlighted that under the Kisan Credit Card (KCC) scheme alone, farmers have received assistance exceeding Rs. 10 lakh crore (US$ 112.78 billion) this year. The scheme has also been extended to livestock and fisheries sectors, benefiting those engaged in these allied activities extensively. Reduction in GST on bio-fertilizers further aided farmers.
- Prime Minister Mr. Narendra Modi highlighted India's openness to global investment in food processing, citing the neo-middle class as a key driver of food trends and consumption. Further, GST reforms favour the sector by reducing taxes on most processed food items and biodegradable packaging, supporting healthier and sustainable product markets.
- In July 2025, The Coastal States Fisheries Meet 2025 under PM Matsya Sampada Yojana allocated Rs. 255 crore (US$ 29.1 million) for infrastructure and Rs. 364 crore (US$ 41.6 million) to equip 1,00,000 vessels with transponders, while launching Regional Fisheries Management Councils and the Marine Fisheries Census 2025 to enhance safety and governance.
- The Union Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) worth Rs. 24,000 crore (US$ 2.79 billion) from FY26 to boost farm productivity, irrigation, credit access, and post-harvest infrastructure for 1.7 crore farmers across 100 districts.
- The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is strengthening India’s food processing sector, benefiting 34.15 lakh farmers and creating over 4.33 lakh jobs through 1,601 projects.
- The government has approved an Action Plan for constructing steel silos under a Public-Private Partnership (PPP) model to modernize storage facilities, with a total capacity of 24.25 Lakh metric tonnes (LMT) under development.
- The budget for Department of Agriculture and Farmers’ Welfare increased from Rs. 21,933.50 crore (US$ 2.53 billion) in 2013-14 to Rs. 1,27,290.16 crore (US$ 14.89 billion) in 2025-26, reflecting the government’s commitment to agricultural development.
- In the Union Budget 2024-25, a provision of Rs. 1.52 lakh crore (US$ 18.26 billion) has been made for agriculture and allied sector.
- As per the Economic Survey 2024-25, for 2026-2027, the MSP for arhar and bajra has been increased by 54% and 56% over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89%, while rapeseed has seen an impressive increase of 98%.
- As per the Economic Survey 2024-25, since FY16, the government has implemented the Per Drop More Crop initiative under PMKSY, covering 95.58 lakh hectares by December 2024 with Rs. 21,968.75 crore (US$ 2.57 billion) released to states for micro-irrigation, offering 55% subsidy to small/marginal farmers and 45% to others. From 2018 to 2024, loans worth Rs. 4,709 crore (US$ 551 million) were approved under the Micro Irrigation Fund (MIF), with Rs. 3,640 crore (US$ 426.5 million) disbursed, supported by a 2% interest subvention to states.
- In January 2024, The Ministry of Food Processing Industries has approved the following under the corresponding component schemes of PMKSY: 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, 588 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects, and 52 Operation Green projects.
- Through several Digital Initiatives, such as the National e-Governance Plan in Agriculture (NeGP-A), the construction of Digital Public Infrastructure (DPI), digital registries, etc., the government has taken a number of steps to ensure access to IT across the nation.
- The Soil Health Card site has been updated and connected with a Geographic Information System (GIS) system, allowing all test results to be captured and shown on a map. Samples are now being gathered using a mobile application as of April 2023 under the new system.
- The Agricultural Technology Management Agency (ATMA) Scheme has been implemented in 704 districts across 28 states and 5 UTs to educate farmers. Grants-in-aid are released to the State Government under the scheme with the goal of supporting State Governments' efforts to make available the latest agricultural technologies and good agricultural practices in various thematic areas of agriculture and allied sector.
- Since its inception, i.e. from 01.04.2001 to 31.12.2022, a total of 42,164 storage infrastructure projects (Godowns) with a capacity of 740.43 Lakh MT have been assisted in the country under the Agricultural Marketing Infrastructure (AMI) sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM).
- The Centre has granted permission to 5 private companies to conduct cluster farming of specified horticulture crops on approximately 50,000 hectares on a trial basis, with a total investment of Rs. 750 crore (US$ 91.75 million). The 5 companies chosen through a bidding process for the pilot cluster farming program are Prasad Seeds, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency.
- 27,003 Loans have been sanctioned in the country under credit linked subsidy component of the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME).
- The Indian government is planning to launch Kisan Drones for crop assessment, digitization of land records, and spraying of insecticides and nutrients.
- NABARD will assist in the creation of a blended capital fund with a focus on the agricultural start-up ecosystem which will be used to fund agriculture and rural enterprise startups that are related to the farm product value chain.
- A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and improved production and protection technologies reach farmers.
- In October 2021, the Union Minister of Home Affairs and Cooperation launched the ‘Dairy Sahakar’ scheme in Anand, Gujarat.
- Ministry of Civil Aviation launched the Krishi UDAN 2.0 scheme in October 2021. The scheme proposes assistance and incentive for the movement of agri-produce by air transport. The Krishi UDAN 2.0 will be implemented at 53 airports across the country, largely focusing on Northeast and tribal regions, and is expected to benefit farmers, freight forwarders, and airlines.
- The Agriculture Export Policy, 2018 was approved by the Government of India in December 2018. The new policy aimed to increase India’s agricultural export to US$ 60 billion by 2022 and US$ 100 billion in the next few years with a stable trade policy regime.
- The Government of India is going to provide Rs. 2,000 crore (US$ 306.29 million) for the computerisation of the Primary Agricultural Credit Society (PACS) to ensure cooperatives are benefitted through digital technology.
- The Government of India launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs. 50,000 crore (US$ 7.7 billion) aimed at the development of irrigation sources for providing a permanent solution to drought.
- Government plans to triple the capacity of the food processing sector in India from the current 10% of agricultural produce and has also committed Rs. 6,000 crore (US$ 729 million) as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).
- The Government of India has allowed 100% FDI in the marketing of food products and in food product E-commerce under the automatic route.
- To enhance the income of farmers, the government has taken initiatives across several focus areas. Income support is provided to farmers through PM KISAN Scheme, crop insurance is assured through the Pradhan Mantri Fasal Bima Yojana, and irrigation facilities are ensured under Pradhan Mantri Krishi Sinchai Yojana.
- Access to institutional credit is being provided through Kisan Credit Card and other channels.
- Under the e-NAM initiative, markets across the length and breadth of the nation are now open to farmers, to enable them to get more remunerative prices for their produce. Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme.
- The umbrella scheme Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) ensures Minimum Support Price (MSP) to farmers for various Kharif and Rabi crops while also keeping a robust procurement mechanism in place.
- In order to increase the level of food- processing industry and encouraging rural entrepreneurship across the country including rural areas, the Ministry of Food Processing Industries (MoFPI) is implementing the Central Sector Umbrella Scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme.
- The PMFME Scheme provides financial, technical, and business support for setting up/upgradation of 2 Lakh micro food processing enterprises through credit-linked subsidy during 5 years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crore (US$ 1.27 billion).
- Under component schemes of PMKSY, MoFPI mostly provides financial assistance in the form of grants-in-aid to entrepreneurs for the creation of modern infrastructure and setting up of food processing/preservation industries including Cold Chains with associated infrastructure like primary processing facilities, collection centres, pre-conditioning, pre-cooling, ripening, packing, etc.
- As per the Union Budget 2023-24, A new sub-scheme of PM Matsya Sampada Yojana with the targeted investment of Rs. 6,000 crore (US$ 729 million) to be launched to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.
- Digital Public Infrastructure for Agriculture: agriculture will be built as an open source, open standard, and interoperable public good. this will enable inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
- To enhance the productivity of extra-long staple cotton, Government will adopt a cluster-based and value chain approach through Public Private Partnerships (PPP). This will mean collaboration between farmers, the state and industry for input supplies, extension services, and market linkages.
- Computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of Rs. 2,516 crore (US$ 305.9 million) initiated.
- Rs. 20 lakh crore (US$ 24.41 billion) agricultural credit targeted at animal husbandry, dairy and fisheries.
- To make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research, and technologies at the international level.
Road Ahead
India’s agriculture sector is poised for sustained growth, supported by rising exports, greater investments, and targeted policy interventions. Agriculture and fisheries exports grew from Rs. 2,49,264 crore (US$ 35.16 billion) in FY20 to Rs. 4,50,839.85 crore (US$ 53.24 billion) in FY25, registering a CAGR of 12.58%. Tamil Nadu has set an ambitious target of Rs. 42,745 crore (US$ 5 billion) in seafood exports by strengthening coastal infrastructure and promoting value addition, while India as a whole aims to achieve Rs. 8,549 crore (US$ 1 billion) turmeric exports by 2030 through the National Turmeric Board and the SPICED scheme, retaining its dominant 58-66% global market share.
Stronger investment in infrastructure is expected to further boost momentum. Over the next five years, the central government plans to attract US$ 9 billion in the fisheries sector under the PM Matsya Sampada Yojana. In parallel, the Union Cabinet has approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY), with an outlay of Rs. 24,000 crore (US$ 2.79 billion) from FY26, to enhance farm productivity, irrigation, credit access, and post-harvest facilities for 1.7 crore farmers across 100 districts.
The Ministry of Food Processing Industries (MoFPI) is also pushing ahead with investments in food processing through the continued implementation of PMKSY, with an allocation of Rs. 4,600 crore (US$ 559.4 million) till March 2026.
Agricultural credit in India is Rs. 33.5 lakh crore (US$ 379 billion) in FY26, driven by increased formalization of rural credit, with National Bank for Agriculture and Rural Development (NABARD) working to address regional imbalances and support tenant farmers. The adoption of food safety and quality assurance frameworks such as Total Quality Management (TQM), ISO 9000, ISO 22000, HACCP, Good Manufacturing Practices (GMP), and Good Hygienic Practices (GHP) is expected to improve product standards, support exports, and increase global competitiveness of Indian agri-products.
Crop diversification and innovation will also play a critical role in shaping the sector’s outlook. India is expected to become self-sufficient in pulses in the coming years, backed by early-maturing seed varieties and higher minimum support prices. Maize production could potentially double to 86 million tonnes by 2047, offering attractive opportunities through high-yield seeds and better crop management. The dairy sector is projected to expand by 11-13% in FY26, driven by value-added products (VAPs) and investments worth Rs. 3,400 crore (US$ 398 million), raising the share of VAPs to 45% while improving margins by 20-30 basis points.
Overall, with strategic investments in infrastructure, continued reforms, and a strong export pipeline, India’s agriculture sector is well-positioned to sustain growth, diversify output, and strengthen its global footprint in the coming decade.
References: Agricultural and Processed Food Products Export Development Authority (APEDA), Department of Commerce and Industry, Press Information Bureau, Ministry of Statistics and Programme Implementation, Press Releases, Media Reports, Ministry of Agriculture and Farmers Welfare, Crisil, Union Budget 2025-26, 26-27, Economic Survey 2024-25
FAQs
The agriculture industry in India includes crop cultivation, horticulture, dairy, fisheries, livestock, and food processing. It forms the backbone of the country's food system while supporting rural livelihoods and the broader agri-value chain.
India's agriculture sector contributes 17.3% to the country's GDP and provides livelihoods to nearly 55% of the population. It also supports food security, rural employment, exports, and allied industries such as food processing.
The Indian agriculture industry comprises crop production, horticulture, dairy, fisheries, livestock, agrochemicals, agricultural machinery, and food processing. Together, these segments strengthen agricultural production, value addition, and exports.
India's agriculture sector is globally recognised for producing rice, spices, milk, pulses, cotton, tea, fruits, vegetables, and marine products. The country is also a leading exporter of agrochemicals and processed agricultural products.
The agriculture industry in India is expanding through rising exports, food processing, agritech adoption, government support, and investments in cold-chain and agricultural infrastructure that improve productivity and market access.
The Indian agriculture sector is adopting AI, drones, blockchain, GIS, and digital farming platforms to improve productivity, optimise resources, strengthen supply chains, and enable farmers to make data-driven decisions.
The Government has launched initiatives such as PM-KISAN, PM Fasal Bima Yojana, PM Krishi Sinchayee Yojana, the Agriculture Infrastructure Fund, and e-NAM to strengthen the agriculture sector in India through better infrastructure, financing, and market access.
The Indian agriculture industry offers opportunities across agritech, food processing, cold storage, dairy, fisheries, agricultural machinery, and logistics. Rising exports, FDI inflows, and policy support continue to enhance the sector's investment potential.
The agriculture industry in India is well-positioned for long-term growth, supported by digital agriculture, infrastructure development, policy reforms, and rising exports. Greater value addition and technology adoption are expected to strengthen India's global agricultural competitiveness.
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