India has the second-largest arable land resources in the world. With 20 agri-climatic regions, all the 15 major climates in the world exist in India. The country also has 46 of the 60 soil types in the world. India is the largest producer of spices, pulses, milk, tea, cashew, and jute, and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. Further, India is second in the global production of fruits and vegetables and is the largest producer of mango and banana.
According to the Second Advance Estimates the Kharif foodgrain production is estimated at 1,663.91 LMT, and Rabi foodgrain production is estimated at 1,645.27 LMT. Kharif Rice production is estimated at 1,206.79 LMT as compared to 1,132.59 LMT in 2023-24, showing an increase of 74.20 LMT.
According to the Ministry of Agriculture’s Second Advance Estimate for 2024-25, rice production is projected to reach a record 157.58 LMT during rabi season.
As on February 4, 2025, the area sown under Rabi crops is 661.03 lakh hectare as compared to 651.42 lakh hectare during the corresponding period of last year.
India's wheat stocks highest in three years. The Food Corporation of India aims to purchase 31 million tons of wheat in 2025. Rice reserves are also high, potentially boosting exports.
In 2024-25 (as per the first advance estimate), India's horticulture output is expected to have hit a record 362.08 million tonnes (MT), a increase of about 9.85 million tonnes (2.80%) as compared to the year 2023-24.
The Agriculture and Allied industry sector witnessed some major developments, investments, and support from the Government in the recent past. Between April 2000-December 2024, FDI in agriculture services stood at Rs. 26,534 crore (US$ 3.11 billion).
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted a Foreign Direct Investment (FDI) equity inflow of about Rs. 1,10,975.3 crore (US$ 13.01 billion) between April 2000-December 2024. This accounts for 1.85% of total FDI inflows received across industries.
During FY25, processed vegetables accounted for Rs. 5,945.4 crore (US$ 697 million), miscellaneous processed items accounted for Rs. 13,102.1 crore (US$ 1,536 million) and processed fruits & juices accounted for Rs. 7,898.8 crore (US$ 926 million).
Moreover, the Indian food processing market is expected to be worth US$ 535 billion by 2025, with a CAGR of 15.2%. The food processing sector employs the most people, accounting for 20.05 lakh or 12.32% of total employment.
India's tea exports surged to 254.67 million kg in 2024, elevating the nation to the third-largest tea exporter globally. This performance generated Rs. 7,111.43 crore (US$ 833.70 million) in revenue, marking a significant increase from the previous year. North India spearheaded the exports with 154.81 million kg, contributing Rs. 4,833.12 crore (US$ 566.60 million) to the total value.
India’s exports of agricultural and processed food products rose by 15% YoY to Rs. 18,169 crore (US$ 2.13 billion) in April 2025, driven by strong rice, meat, and fruit shipments.
The exports for principal commodities in FY25 were the following:
- Marine Product: US$ 6.73 billion
- Basmati and Non-Basmati Rice: US$ 11.29 billion
- Spices: US$ 3.79 billion
- Buffalo Meat: US$ 3.69 billion
- Sugar: US$ 1.86 billion
- Miscellaneous processed items: US$ 1.53 billion
- Oil Meal: US$ 1.22 billion
The Agricultural and Processed Food Products Export Development Authority (APEDA) is implementing strategic initiatives to diversify India's agricultural exports, focusing on key products like fresh fruits, vegetables, processed foods, and animal products.
Under PMKSY-Per Drop More Crop, from FY16 to FY25 (end of Dec. 2024), Rs. 21,968.75 crore (US$ 2.56 billion) was released to states for the implementation of the PDMC scheme, covering an area of 95.58 lakh hectares.
As of December 31, 2024, agriculture credit to the tune of Rs. 19.28 lakh crore (US$ 224.60 billion) had been disbursed, achieving 70% of the target.
The actual credit to the agriculture sector by commercial banks and regional rural banks were likely to surpass Rs. 28 lakh crore (US$ 326.19 billion) in FY25, potentially reaching Rs. 29 trillion (US$ 337.84 billion) according to NABARD Chairman.
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.
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.
In December 2023, Tata-owned Rallis India launched NAYAZINC fertilizer.
In December 2023, NITI Aayog and IFPRI signed a Statement of Intent to strengthen policy frameworks for agricultural transformation and rural development.
In November 2023, India signed deals to export 5,00,000 tons of new season basmati rice in Europe and the Middle East.
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.
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).
In June 2023, Mother Dairy invested Rs. 400 crore (US$ 48.33 million) to set up a unit in Nagpur.
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.
As per the Union Budget 2025-26:
- Prime Minister Dhan-Dhaanya Krishi Yojana - Agri Districts Programme: A partnership with states to launch a programme covering 100 low-productivity districts, benefiting 1.7 crore farmers through improved crop intensity, credit access, and productivity.
- Building Rural Prosperity and Resilience: A multi-sectoral initiative with states to tackle under-employment in agriculture, promoting skilling, investment, technology, and strengthening the rural economy. Phase-1 targets 100 developing agri-districts.
- Mission for Aatmanirbharta in Pulses: A six-year initiative to enhance domestic production of Tur, Urad, and Masoor, with NAFED and NCCF procuring pulses from farmers for the next four years.
- Comprehensive Programme for Vegetables & Fruits: A state-partnered programme focusing on production, supply chain efficiency, processing, and ensuring remunerative prices for farmers.
- Makhana Board in Bihar: Establishment of a dedicated board to improve the production, processing, value addition, and marketing of Makhana.
- National Mission on High Yielding Seeds: Aimed at boosting research and development, commercial availability, and distribution of over 100 high-yield seed varieties to enhance agricultural productivity.
- Sustainable Fisheries Framework: Introduction of a sustainable fisheries framework focusing on the harnessing of resources from the Indian Exclusive Economic Zone and High Seas, with a special emphasis on the Andaman & Nicobar and Lakshadweep Islands.
- Mission for Cotton Productivity: A five-year mission to significantly improve cotton farming productivity and sustainability, focusing on extra-long staple cotton varieties.
- Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme increases from Rs. 3 lakh (US$ 3,445) to Rs. 5 lakh (US$ 5,742) for loans under the Kisan Credit Card (KCC).
- Urea Plant in Assam: A new plant with an annual capacity of 12.7 lakh metric tons will be established at Namrup, Assam.
- The agriculture sector's budget has increased from Rs. 11,915.22 crore (US$ 1.38 billion) in 2008-09 to Rs. 1,22,528.77 crore (US$ 14.21 billion) in 2024-25.
- Food grain production has surged from 204.6 million tonnes (2004-05) to an estimated 332.3 million tonnes (2023-24).
- The MSP for paddy and wheat has risen significantly from Rs. 850 (US$ 9.86) and Rs. 1,080 (US$ 12.53) per quintal in 2008-09 to Rs. 2,300 (US$ 26.69) and Rs. 2,425 (US$ 28.14) per quintal in 2023-24, respectively.
- The total MSP paid to farmers increased from Rs. 4.40 lakh crore (US$ 51.04 billion) and Rs. 2.27 lakh crore (US$ 26.34 billion) in 2004-13 to Rs. 12.51 lakh crore (US$ 145.14 billion) and Rs. 5.44 lakh crore (US$ 63.14 billion) in 2014-24, respectively.
- Farmer-Centric Initiatives
- PM-KISAN: Rs. 3.46 lakh crore (US$ 40.14 billion) disbursed to support farmers.
- PMFBY: Rs. 1.65 lakh crore (US$ 19.14 billion) in claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
- e-NAM: Over 1,400 mandis integrated for better market access.
- Agricultural Infrastructure Fund (AIF): Sanctioned Rs. 52,738 crore (US$ 6.12 billion) for 87,500+ projects to improve post-harvest management.
- Farmers will soon have access to 109 new high-yielding, climate-resilient varieties of 32 field and horticulture crops.
- In the next 2 years, 1 crore farmers will adopt natural farming with certification and branding support. Scientific institutions and gram panchayats will manage this, along with establishing 10,000 bio-input resource centres.
- To achieve self-sufficiency in pulses and oilseeds, efforts will be made to enhance their production, storage, and marketing. A strategy is being implemented to ensure 'atmanirbharta' for mustard, groundnut, sesame, soybean, and sunflower, as announced in the interim budget.
- Large vegetable production clusters will be developed near major consumption centres. This will promote Farmer-Producer Organizations, cooperatives, and start-ups for the collection, storage, and marketing of vegetables.
- Building on the pilot project's success, the government and states will implement Digital Public Infrastructure (DPI) in agriculture, covering farmers and their lands in 3 years. This year, a digital crop survey for Kharif will be conducted in 400 districts, registering 6 crore farmers and their lands. Jan Samarth-based Kisan Credit Cards will also be issued in 5 states.
- Financial support will establish Nucleus Breeding Centres for Shrimp Broodstocks. NABARD will facilitate financing for shrimp farming, processing, and export.
- Financial support will be provided to set up 50 multi-product food irradiation units in the MSME sector. Additionally, 100 NABL-accredited food quality and safety testing labs will be established.
- India’s seafood exports reached a record US$ 7.17billion (Rs. 60,000 crore) last year, with frozen shrimp accounting for about two-thirds of the total. To boost competitiveness, it is proposed to reduce the BCD on specific broodstock, polychaete worms, shrimp, and fish feed to 5%, and to exempt customs duty on inputs for shrimp and fish feed production.
As per the Economic Survey 2024-25:
- For FY25, the MSP for arhar and bajra has been increased by 59% and 77% 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%.
- 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.
The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price.
