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Indian Agriculture Industry Analysis

August, 2013

India holds the second largest agricultural land (179.9 million hectares) in the world. India is the largest producer of pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds. Total food grains production in India reached an all-time high of 259.32 million tonnes (MT) in FY12. Rice and wheat production in the country stood at 105.3 MT and 94.9 MT respectively.

Gross Domestic Product (GDP) of agriculture and allied sectors in India reached US$ 151.8 billion in FY12. India is among the 10 leading exporters of agricultural products in the world; the country accounted for 2.07 per cent of global agricultural trade in 2012. Total agricultural exports from India registered 24.1 per cent compound annual growth rate (CAGR) to reach US$ 39 billion during FY07-12.

Domestic demand for agricultural and allied products has not only been rising due to rising population, but also as a result of greater consumption by a wealthier population. Indian agriculture has also benefitted from rising external demand and the sector’s wider participation in the global economy.

The Government of India has launched National Food Security Mission (NFSM) to increase production of rice, wheat and pulses. It has also implemented schemes like Rashtriya Krishi Vikas Yojana (RKVY) which incentivises states to increase private investment in agriculture and allied sectors.

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