At 179.9 million hectares, India holds the second largest agricultural land in the world. A majority of the Indian population relies on agriculture for employment and livelihood. Steady investments in technology development, irrigation infrastructure, emphasis on modern agricultural practices and provision of agricultural credit and subsidies are the major factors contributing to agriculture growth. The country has today emerged as a major player in the global agriculture market. Agriculture accounts for 14 per cent of gross domestic product (GDP) and about 11 per cent of India’s total exports; it is also an essential link in the supply chain of the manufacturing sector and at the same time constitutes a big market for industrial products. Currently, India is the world's largest rice exporter and second in terms of wheat exports. Horticulture exports have also seen good growth. India's agro exports during 2013–14 touched US$ 45 billion as against US$ 25 billion in 2011–12. The Department of Agriculture and Cooperation under the Ministry of Agriculture is the nodal organisation responsible for development of the agriculture sector in India. The organisation is responsible for formulation and implementation of national policies and programmes aimed at achieving rapid agricultural growth through optimum utilisation of land, water, soil and plant resources of the country.

1. AGRICULTURE SECTOR
Contents:
• Executive Summary
• Introduction of the sector
• Literature review of the sector- Definition, Statistical
data, Contents, etc
• Data Analysis and Interpretation
• Discussion with peers, colleagues, corporate, etc.
• Employment opportunities and challenges
• Findings and suggestions
• Conclusion
•Annexure and bibliography

2. EXECUTIVE SUMMARY:
2nd largest
agricultural land
Favourable climate
conditions
Largest producer of
major agriculture and
horticulture crops
Record production
of food grains
Increasing farm
mechanization
At 179.9 million hectares, India holds the second largest agricultural
land in the world.
With 20 agri-climatic regions, all 15 major climates in the world exist in
India. The country also possesses 46 of the 60 soil types in the world.
Total food grains production in India reached an all-time high of 259.32
million tonnes in FY12. Rice and wheat production in the country stood
at 105.3 and 94.9 million tonnes, respectively.
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.
India is one of the largest manufacturers of various farm equipments
like tractors, harvesters and tillers. India manufactures one-third of
tractors in the world; the number of tractors in the country is estimated
to reach 16 million by 2030 from 4 million in 2012.

3. INTRODUCTION:
• At 179.9 million hectares, India holds the second largest agricultural land in the world. A majority of the
Indian population relies on agriculture for employment and livelihood. Steady investments in technology
development, irrigation infrastructure, emphasis on modern agricultural practices and provision of
agricultural credit and subsidies are the major factors contributing to agriculture growth.
• The country has today emerged as a major player in the global agriculture market. Agriculture accounts for
14 per cent of gross domestic product (GDP) and about 11 per cent of India’s total exports; it is also an
essential link in the supply chain of the manufacturing sector and at the same time constitutes a big
market for industrial products. Currently, India is the world's largest rice exporter and second in terms of
wheat exports. Horticulture exports have also seen good growth. India's agro exports during 2013–14
touched US$ 45 billion as against US$ 25 billion in 2011–12.
• The Department of Agriculture and Cooperation under the Ministry of Agriculture is the nodal
organisation responsible for development of the agriculture sector in India. The organisation is responsible
for formulation and implementation of national policies and programmes aimed at achieving rapid
agricultural growth through optimum utilisation of land, water, soil and plant resources of the country.

4. KEY AGRICULTURE STATE AND THEIR CONTRIBUTION:
Punjab and Haryana were the key
states of green revolution and
continue to be large producers of
food grains
Gujarat – largest
producer of cotton
(12.00 million bales)
Karnataka – largest
producer of maize
(4.09 million tonnes)
Madhya Pradesh – largest
producer of pulses
(4.16 million tonnes)
Uttar Pradesh – largest
producer of wheat
(30.29 million tonnes)
Assam is India’s largest
producer of tea
West Bengal – largest
producer of rice
(14.85 million tonnes)

5. LITERATURE REVIEW OF THE SECTOR:
•Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life forms
for food, fiber, biofuel, medicinals and other products used to sustain and enhance human life. Agriculture was
the key development in the rise of sedentary human civilization, whereby farming of domesticated species
created food surpluses that nurtured the development of civilization. The study of agriculture is known
as agricultural science.
•As Per the 2010 FAO world agriculture statistics, India is the world's largest producer of many fresh fruits and
vegetables, milk, majorspices, select fresh meats, select fibrous crops such as jute, several staples such
as millets and castor oil seed. India is the second largest producer of wheat and rice, the world's major food
staples. India is also the world's second or third largest producer of several dry fruits, agriculture-
based textile raw materials, roots and tuber crops, pulses, farmed fish, eggs, coconut, sugarcane and
numerous vegetables. India ranked within the world's five largest producers of over 80% of agricultural
produce items, including many cash crops such as coffee and cotton, in 2010.India is also one of the world's five
largest producers of livestock and poultry meat, with one of the fastest growth rates, as of 2011.
•One report from 2008 claimed India's population is growing faster than its ability to produce rice and
wheat.Other recent studies claim India can easily feed its growing population, plus produce wheat and rice for
global exports, if it can reduce food staple spoilage, improve its infrastructure and raise its farm productivity to
those achieved by other developing countries such as Brazil and China.

6. •In fiscal year ending June 2011, with a normal monsoon season, Indian agriculture accomplished an all-
time record production of 85.9 million tonnes of wheat, a 6.4% increase from a year earlier. Rice output in
India also hit a new record at 95.3 million tonnes, a 7% increase from the year earlier. Lentils and many
other food staples production also increased year over year. Indian farmers, thus produced about 71
kilograms of wheat and 80 kilograms of rice for every member of Indian population in 2011. The per
capita supply of rice every year in India is now higher than the per capita consumption of rice every year
in Japan.
•India exported around 2 million metric tonnes of wheat and 2.1 million metric tonnes of rice in 2011
to Africa, Nepal, Bangladesh and other regions around the world.
•Aquaculture and catch fishery is amongst the fastest growing industries in India. Between 1990 and
2010, Indian fish capture harvest doubled, while aquaculture harvest tripled. In 2008, India was the
world's sixth largest producer of marine and freshwater capture fisheries, and the second largest
aquaculture farmed fish producer. India exported 600,000 metric tonnes of fish products to nearly half of
all the world's countries.
•India has shown a steady average nationwide annual increase in the kilograms produced per hectare for
various agricultural items, over the last 60 years. These gains have come mainly from India's green
revolution, improving road and power generation infrastructure, knowledge of gains and reforms. Despite
these recent accomplishments, agriculture in India has the potential for major productivity and total
output gains, because crop yields in India are still just 30% to 60% of the best sustainable crop yields
achievable in the farms of developed as well as other developing countries. Additionally, losses after
harvest due to poor infrastructure and unorganised retail cause India to experience some of the highest
food losses in the world.

7. Food grain
production:
69.3 million
tonnes
1960-61
Strong demand
•A large population is the key
driver of demand for
agricultural products
• Rising urban and rural
incomes have also aided
demand growth
• External demand has also
been growing especially from
key markets like the Middle
East
Attractive opportunities
• Increasing demand for
agricultural inputs such as
hybrid seeds and fertilisers
• Promising opportunities in
storage facilities; potential
storage capacity expansion of
35 million tonnes under the
12th Five Year Plan Policy
support
2012-13
Food grain
production:
259 million
tonnes
Competitive advantages
• High proportion of
agricultural land (54.7 per
cent or 179.9 million
hectares)
• Leading producer of jute,
pulses; second-largest
producer of wheat,
paddy, fruits and vegetables
Policy support
• Government is increasing Minimum
Support Prices (MSPs) to ensure
higher crop production
• Schemes like Rashtriya Krishi Vikas
Yojana (RKVY) incentivises states to
increase private nvestment in
agriculture and allied sectors
• Launched National Food Security
Mission (NFSM) to increase
production of rice, wheat and pulses
Advantage
India

8. EVOLUTION OF AGRICULTURE IN INDIA
1950s
1960-1980
1980-2000
2000 onwards
•Stagnation in
agriculture
•Low growth in crop
and grain production
(0.4 and 0.1 per cent
p.a.)
•Food grain production
of 59.2 mt in 1952–53,
with a yield of 579.8
kg/ha
• Pioneering work of
agricultural scientists and
efforts of farmers led to
Green Revolution
• High Yield Variety (HYV)
of seeds, increased use of
fertilizers and irrigation
resulted in a significant
spike in production
• Attained food security
and reduced import of
food grains
•Expanding cereal
production
• Economic reforms
introduced; greater
encouragement to
exports
• Surplus of production
of agricultural
commodities over
domestic demand
• India emerges as a
net exporter of
agricultural products
• Increase in population
and strong income
growth
MNC players brought
in better technology
• Rise in institutional credit for
agriculture
• Government launched NFSM
to increase production of
commodities
• Schemes like National
Horticulture Mission (NHM)
and Bringing Green Revolution
in Eastern India (BREI) helped
achieve record production
• Commodity exchanges
helped in fair pricing of
commodities

9. GOVERNMENT INITIATIVES:
The Government of India is implementing many programmes for raising investments in agriculture. Notable
among them are Rashtriya Krishi Vikas Yojana (RKVY); National Food Security Mission (NFSM); National
Horticulture Mission (NHM); Gramin Bhandaran Yojana; Integrated Scheme of Oilseeds, Pulses, Oil palm, and
Maize (ISOPOM), etc. The following are some of the major initiatives taken by the Government of India:
•The government has allowed 100 per cent FDI under automatic route in storage and warehousing,
including cold storages. Hundred per cent FDI is also permitted for development of seeds under the
automatic route.
•The government is promoting production of various organic inputs in the country, including bio-
fertilisers under the National Project on Organic Farming (NPOF). The project provides financial
assistance up to 25 per cent of total financial outlay up to a ceiling of Rs 40 lakhs as credit linked back-
ended subsidy for setting up bio-fertilisers production units.
•In the Union Budget 2014–15, a target of Rs 8 trillion (US$ 132.71 billion) for agriculture credit has
been set for 2014–15. The credit target for 2013–14 was Rs 7 trillion (US$ 116.06 billion). Further, the
government on January 31, 2014 released Rs 180.22 crore (US$ 29.89 million) as grant-in-aid to states
under the scheme to develop infrastructure facilities for production and distribution of quality seeds.
•The Cabinet Committee on Economic Affairs (CCEA) has approved the implementation of the National
Mission on Agricultural Extension and Technology (NMAET) during the 12th Five Year Plan with a total
outlay of Rs 13,073.08 crore (US$ 2.17 billion). The mission aims to restructure and strengthen
agricultural extension to enable delivery of appropriate technology and improved agronomic practices
to farmers.

10. •Further, in 2013–14, a pilot scheme on Nutri Farms was launched with an outlay of Rs 200 crore (US$
33.18 million) to promote cultivation of bio-fortified food crops enriched with critical micro nutrients
such as iron-rich bajra, protein-rich maize and zinc-rich wheat, etc., to improve the nutrition status of
the most vulnerable sections of the country’s population.

11. PROBLEMS:
"With a population of just over 1.2 billion, India is the world’s largest democracy. In the past decade, the
country has witnessed accelerated economic growth, emerged as a global player with the world’s fourth
largest economy in purchasing power parity terms, and made progress towards achieving most of the
Millennium Development Goals. India’s integration into the global economy has been accompanied by
impressive economic growth that has brought significant economic and social benefits to the country.
Nevertheless, disparities in income and human development are on the rise. Preliminary estimates suggest
that in 2009-10 the combined all India poverty rate was 32 % compared to 37 % in 2004-05. Going forward,
it will be essential for India to build a productive, competitive, and diversified agricultural sector and
facilitate rural, non-farm entrepreneurship and employment. Encouraging policies that promote
competition in agricultural marketing will ensure that farmers receive better prices."
—World Bank: "India Country Overview 2011"
• A rural market in India - farmers with limited marketing options sell their surplus produce.
• India lacks cold storage, food packaging as well as safe and efficient rural transport system. This causes one
of the world's highest food spoilage rates, particularly during Indian monsoons and other adverse weather
conditions.
• Food travels to the Indian consumer through a slow and inefficient chain of traders. Indian consumers buy
agricultural produce in suburban markets known as 'sabzi mandi' such as one shown or from roadside
vendors.

12. Infrastructure
India has very poor rural roads affecting timely supply of inputs and timely transfer of outputs from Indian
farms. Irrigation systems are inadequate leading to crop failures in some parts of the country because of
lack of water. In other areas regional floods, poor seed quality and inefficient farming practices, lack of cold
storage and harvest spoilage cause over 30% of farmer's produce going to waste, lack of organised
retail and competing buyers thereby limiting Indian farmer's ability to sell the surplus and commercial
crops.
Productivity
Although India has attained self-sufficiency in food staples, the productivity of Indian farms is below that of
Brazil, the United States, France and other nations. Indian wheat farms, for example, produce about a third of
the wheat per hectare per year compared to farms in France. Rice productivity in India was less than half that
of China.
Farmer suicides
Following the liberalising economic reforms of 1991 the government withdrew support from the
agricultural sector. These reforms, along with other factors, led to a rise in farmer suicides. Various studies
identify the important factors as the withdrawal of government support, insufficient or risky credit
systems, the difficulty of farming semi-arid regions, poor agricultural income, absence of alternative
income opportunities, a downturn in the urban economy which forced non-farmers into farming, and the
absence of suitable counseling services

13. 110
120
130
140
150
160
GDP by value added – size of agriculture and allied
activities (USD billion)
FY07 FY08 FY09 FY10 FY11 FY12
CAG: 3.3%
0
5
10
15
20
25
30
35
Gross Capital Formation in agriculture and allied
activities (USD billion)
FY07 FY08 FY09 FY10 FY11 FY12
CAG: 9.7%
GROWTH IN AGRICULTURE:
•GDP of agriculture and allied sectors in
India reached USD 151.8 billion in FY12
•According to the Central Statistical
Organisation (CSO), the agriculture and
allied sector grew 2.8 per cent in FY12
•Agriculture is the primary source of
livelihood for about 58 per cent of India’s
population
•At USD30.5 billion, agriculture accounted for
6.8 per cent of total Gross Capital Formation in
FY12
•Under the FY14 Union Budget, planned outlay
for various schemes under the Department of
Agriculture and Cooperation (DAC) has been
fixed at USD11.8 billion
•Allocation to the Rashtriya Krishi Vikas Yojana
(RKVY) in the FY14 budget has been increased
to USD2.1 billion, a rise of about 9 per cent
from the previous financial year
*CAG: Compound Annual Growth

14. Paddy Oilseeds Pulses Cotton Bajra Maize
Wheat Pulses Oilseeds Jawar Maize Rice
Gross capital formation in Indian agriculture
sector and allied activities
At US$ 30.5 billion, agriculture accounted for
6.8 per cent of total Gross Capital Formation
in FY12.
Area sown in India
Area sown in India during rabi season
in FY13 (lakh hectares).

15. GROWTH DRIVERS OF INDIAN AGRICULTURE:
Demand side
drivers
Growth
drivers
Supply side
drivers
Policy
drivers
• Hybrid and genetically
modified seeds
• Mechanisation
• Irrigational facilities
• Green Revolution in
Eastern India
•Growing institutional
credit
• Increasing MSPs
• Introduction of new
schemes
• Opening up of
exports of wheat and
rice
• Population and
income growth
• Increasing exports
• Favourable
demographics

16. FAVOURABLE POLICIES ARE SUPPORTING THE SECTOR GROWTH:
National Food Security
Mission (NFSM)
Rajiv Krishi
Vikas Yojana (RKVY)
Foreign Direct
Investment (FDI)
Bringing Green
Revolution in Eastern
India (BGREI)
•National Food Security Mission was launched in FY08 with an outlay of
USD1.2 billion during the 11th Five year plan
• It aimed at enhancing the production of rice, wheat and pulses by 10
million tonnes, 8 million tonnes and 2 million tonnes by FY12
•Rajiv Krishi Vikas Yojana was launched in FY08 with an outlay of USD5.3
billion during the 11th Five year plan
• RKVY aims at incentivising states to increase outlays for agriculture
and allied activities there by creating an increased focus on agriculture
• 100 per cent Foreign Direct Investment (FDI) is allowed under
automatic route in storage and ware housing including cold storages
• FDI policy for agriculture was amended to allow 100 per cent FDI
under automatic route for development of seeds
• Scheme was launched in 2011, under RKVY, to strategically increase in
productivity in Eastern states
• BGREI actively promoted various technological interventions and
emphasized on collaborative work among institutions, officials and
farmers

17. Pulses villages
Incentivising
agricultural
research
Regional Rural Bank
Credit Refinance Fund
Bringing Green
Revolution in Eastern
India (BGREI)
• Government has launched an initiative to spend USD 65.1 million to
promote 60,000 pulses villages’ in rain fed areas for increasing crop
productivity and strengthening market linkages
•Realising that scientific and technical breakthroughs are critical to
increasing agricultural productivity, the government, in its FY14 budget,
allocated USD711.4 million to incentivise farm research
• The government plans to set up a Regional Rural Bank Credit
Refinance Fund with a capital of USD2.1 billion to enhance the capacity
of RRBs to disburse short term crop loans to small and marginal farmers
• In budget for FY14, the government raised the target for agricultural
credit by USD26.04 billion to USD145.8 billion
• ISOPOM scheme was launched in 2004 to provide flexibility and
promote crop diversification; under ISOPOM, states can utilise the
allotted funds to develop a crop of their choice

18. OPPORTUNITIES:
Farm management services
• New agri business, which
provides inputs such as seeds,
fertilisers along with providing
advice and training farmers on
latest agricultural practices
• It introduces efficiencies into
the whole gamut of agri
practices
• Provides assistance to sell
products at appropriate prices
Agricultural inputs Logistics
• Limited arable land against
growing population makes
agricultural inputs crucial
• Huge opportunity exists for
agri input segments like seeds
and plant growth nutrients
• In India, commercial seeds
only account for minor
percentage (25 per cent) and
huge demand is expected for
quality branded seeds
• The 12th Five Year Plan
estimated a potential storage
capacity expansion of 35
million tonnes
• Cold storage capacity needs
to grow rapidly from the
current level of 24 million
tonnes
• Private warehouse operators
are supported by multiple
income streams, subsidy and
available of credit

19. A LARGE POPULATION ENSURES HIGH DEMAND FOR AGRICULTURE PRODUCTS
0
200
400
600
800
1000
1200
1400
Population of India (million)
FY71 FY81 FY91 FY01 FY11
•India, the second-most populated country
in the world, has to meet food consumption
needs of around 1,210 million people
•This is a key demand driver of agricultural
growth in the country
•India’s consumption expenditure is likely to
reach USD3.6 trillion by 2020, up from an
estimated USD1.0 trillion in 2010

20. BUDGET FY 14: AGRICULTURE REMAINS PRIORITY
•In the Union Budget FY14, the Government of India allocated USD145.8 billion for agriculture credit, an
increase of USD26.04 billion compared to FY13
•Funds allotted to the Agriculture Ministry increased 22 per cent to USD5.63 billion; of this, USD711.4
million is planned for farm research
•Total plan outlay for agriculture in FY14 has been raised to USD3.56 billion from USD2.87 billion in FY13
•Under the successful scheme of Bringing Green Revolution to Eastern India (BGREI), the government
allotted USD 208.3 million to improve agricultural production in Eastern states
•Government plans to launch crop diversification programmes in states like Punjab and Haryana, and has
allotted USD104.1 million to improve yields
•National Food Security Mission, a scheme to bridge yields gap of major crops, has been provided
USD468.7 million
•Funds for the Integrated Watershed Programme FY14 has been increased from USD0.6 billion to USD1.12
billion in FY13

21. INITIATIVES THAT WILL FUTHER PROP UP THE SECTOR
FDI in multi – brand
retail
National Food Security
Bill
• The government has allowed up to 51 per cent FDI in multi-brand retail
which will positively influence agriculture and enable its modernisation
even further
• Foreign investors are likely to bring in efficiencies, especially in food
supply chains; they are likely to invest in logistics such as warehouses and
cold storages
• Direct procurement from farmers will likely result in higher prices for
the farmer and lower ones for the consumer
• Under the proposed National Food Security Bill, government
guarantees beneficiaries a prescribed quantity of food grains at heavily-
discounted prices
• To meet the demand that could emanate from implementation of the
bill, the government will take measures to raise productivity
• The government is likely to invest more on the storage infrastructure,
which will reduce wastage and thereby lead to lower prices