Agriculture GVA rises to US$ 589.34 billion as India’s farm economy expands
- IBEF
- August 14, 2026
India’s agriculture and allied sector continue to play a significant role in the country’s economic growth, with Gross Value Added (GVA) from agriculture rising to Rs. 52.08 lakh crore (US$ 589.34 billion). The expansion reflects the growing contribution of agriculture, forestry and fishing to the Indian economy and the sector’s continued importance in supporting rural livelihoods, food security and domestic demand. Growth in the farm economy has been supported by improvements in agricultural production, allied activities and government interventions aimed at strengthening farm infrastructure, productivity and market access. The sector also remains an important source of employment and income for a large section of the population, while increasing integration with food processing, logistics and value-added agricultural activities is creating new opportunities across the rural economy.
The expansion of agricultural GVA also underlines the increasing importance of strengthening productivity, diversification and value addition across India’s farm sector. Greater adoption of technology, improved irrigation and storage infrastructure, better market linkages and the development of agricultural value chains can help enhance farmers’ incomes and reduce post-harvest losses. Initiatives supporting digital agriculture, Farmer Producer Organisations, food processing, agricultural exports and modern supply-chain infrastructure are contributing to the sector’s transformation. Continued investment in climate-resilient farming, mechanisation and allied activities such as livestock, fisheries and horticulture can further support sustainable growth. The rising GVA highlights the resilience of India’s farm economy and its role in supporting broader economic development, rural employment and the country’s long-term growth objectives.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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