Agriculture in India: Information About Indian Agriculture & Its Importance

Globally, India is the second largest producer of fruits and vegetables, rice, wheat, groundnuts, cashew, and tea.

Advantage India

Robust
Demand

*Factors contributing to the sharp growth in demand for processed foods include increasing urbanization, increasing disposable incomes, changing spending patterns/ priorities, the emergence of nuclear families, and the growing need for convenience foods in dual-income nuclear families.

*The demand for organic products in the Indian market is growing and is anticipated to rise with a CAGR of 25.25% between 2022-27.

Attractive
Opportunities

*Entry of foreign players has been key to sustainable growth in some sectors such as dairy.

*Trends indicate a sharp increase in on-the-go eating, snacking in between meals, switching to healthier eating alternatives, pre-cooked ready-to-eat meals, and increasing consumption of organic foods. This has led to a host of new opportunities in the consumer foods market for both domestic and international companies to build a stake in this fast-growing processed food market.

Policy
Support

*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.

*A new sub-scheme of PM Matsya Sampada Yojana with a 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.

Competitive
Advantage

*India has access to several natural resources that provides it a competitive advantage in the food processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries.

Last updated: Aug, 2023

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