The latest news and statistics regarding India’s agriculture sector in 2023 highlight several key trends and developments:
- Growth Rate: The agricultural growth rate in India fell to 3% in 2021-22 from 3.3% in 2020-21. Despite this decline, the sector has grown at an average annual rate of 4.6% over the last six years.
- Sector Challenges and Investment Trends: The sector is facing challenges like climate change impacts, fragmented landholdings, sub-optimal farm mechanisation, and rising input costs. Government investment in agriculture declined to 4.3% in 2020-21 from 5.4% in 2011-12, while private investment has increased to 9.3%, indicating a trend towards corporatisation.
- Exports and Employment: India became a net exporter of agriculture and allied products in 2021-22, with export revenue reaching a record high of $50.2 billion. The agriculture sector continues to employ the largest number of workers in the country, with a slight increase in the share of workers engaged in agriculture from 2019-20 to 2020-21.
- Livestock Sector Growth: The livestock sector in India grew at a compound annual growth rate of 7.9% from 2014-15 to 2020-21. While the crop sector remains the major contributor to agriculture gross value added (GVA), its share has been decreasing, and the contribution of the livestock sector to total agriculture GVA has increased significantly.
- Agriculture Sector Growth Forecast for FY 2022-23: The Indian agriculture sector is projected to grow by 3.5% in the fiscal year 2022-23. Additionally, India’s agriculture exports are expected to touch $50.2 billion in FY 2022-23, and the total kharif food grain production in the country is estimated at 149.9 million tonnes.
- Digital Transformation in Agriculture: India is focusing on transforming its agriculture sector through digital revolution. Digitalization and emerging technologies are expected to revolutionize farming practices and enhance farm productivity, particularly benefiting small and marginal farmers.
- Public and Private Sector Involvement: Both public and private sectors are involved in science, technology, and innovation initiatives to revitalize the agri-food system. Agri-tech startups are playing a significant role in providing innovative solutions across the agricultural value chain.
- Global Commitments and Food Security: India, under its G20 presidency, is emphasizing food security and climate resilience through sustainable agriculture. The G20 Agriculture Ministers’ Meeting in June 2023 focused on establishing inclusive, resilient, and sustainable agricultural systems.
These insights reveal a dynamic and evolving agricultural landscape in India, characterized by digital innovation, export growth, and a focus on sustainable and inclusive agricultural practices.