India is a leading producer of jute, pulses; second-largest producer of wheat, paddy, fruits and vegetables. The country has high proportion of arable land (55 per cent or 182.3 million hectares).
Gross Domestic Product (GDP) of agriculture and allied sectors in India reached US$ 151.8 billion in FY12. India is among the 15 leading exporters of agricultural products in the world; total agricultural exports from India registered 24.1 per cent compound annual growth rate (CAGR) to reach US$ 37.4 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 plans to set up a Regional Rural Bank (RRB) Credit Refinance Fund with a capital of US$ 2.1 billion to disburse short term crop loans to small and marginal farmers. It has also launched National Food Security Mission (NFSM) to increase the production of rice, wheat and pulses.