AGRICULTURE AND ALLIED SECTORS

SYLLABUS:

GS 3 > Economic Development >> Agriculture

REFERENCE NEWS:

The National Statistics Office released a report offering a comprehensive overview of India’s
agricultural performance over the past decade.

Statistical Report on Value of Output from Agriculture and Allied Sectors (2011-12 to 2023-
24): NSO 2025 Report
Overall Growth
o GVA (Current Prices): Grown by 225% – from ₹1,502 thousand crore (2011–12) to
₹4,878 thousand crore (2023–24).
o Gross Value of Output GVO(Constant Prices): Increased by 54.6% – from ₹1,908
thousand crore to ₹2,949 thousand crore.
Crop Sector
o GVO of crop sector in 2023–24: ₹1,595 thousand crore (54.1% share in total agri
GVO).
o Cereals + fruits & vegetables: Account for 52.5% of crop GVO.
o Uttar Pradesh is the top cereal producing state.
o Top cereals: Paddy and wheat = 85% of cereal GVO.
State Contributions (Cereals)
o Top 5 States (2023–24): UP, MP, Punjab, Telangana, Haryana = 53% of cereal GVO.
o UP’s share declined from 18.6% to 17.2%, but it remains top contributor.
Fruits and Vegetables
o Banana overtook Mango in 2023–24 as top fruit by GVO.
o Potato remained top vegetable (₹37.2k crore in 2023–24 vs ₹21.3k crore in 2011–12).
Floriculture
o GVO nearly doubled: ₹17.4k crore → ₹28.1k crore.
o Indicates rising commercial interest and diversification in horticulture.
Condiments & Spices
o Madhya Pradesh emerged as top contributor (19.2% of GVO in 2023–24), overtaking
Karnataka and Gujarat.
Livestock Sector
o GVO rose from ₹488k crore to ₹919k crore.
o Milk remained dominant (share decreased from 67.2% to 65.9%).
o Meat share increased from 19.7% to 24.1%.
Forestry and Logging
o Moderate growth: ₹149k crore → ₹227k crore.
o Industrial wood share grew significantly: 49.9% → 70.2%.
Fisheries and Aquaculture
o Share in total GVO increased: 4.2% → 7.0%.
o Inland fish share fell from 57.7% to 50.2%; marine fish share rose from 42.3% to
49.8%.
o Major state shifts: West Bengal and Andhra Pradesh saw significant changes.
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AGRICULTURE AND ALLIED SECTORS IN INDIA:

Agriculture and its allied sectors, including crop production, livestock, forestry, and fisheries,
form the backbone of India’s rural economy.

o Despite contributing a declining share to GDP, the sector contributes to primary

income of over 58% of India’s population. It employs nearly 61% population and
contributes to 25% of the national income. is it as per the report? usually ~ 18% alle
o India stands as the leading producer of milk, pulses and spices worldwide.
o India ranks second in production of fruits and vegetables, tea, farmed fish, cotton,
sugarcane, wheat, rice and sugar.
o With world’s second largest agricultural land, India’s agricultural sector employs
roughly half of the nation’s population.
o Food crops such as wheat, rice, and bajra occupy 75% of cultivated land while
commercial crops make up the remaining 25%.
o Livestock sector holds significant importance in the Indian economy, contributing
4.35% to the GDP and 29.35% to the total agricultural GDP. Approximately 20.5 million
people rely on livestock for their livelihoods and the sector employs 8.8% of the Indian
population.
o The dairy sector in India contributes 5% to the GDP.
o India ranks among the world’s top producers of eggs and broiler meat.
o India’s fisheries sector is denominated as a sunrise sector has maintained an
impressive double digit annual growth rate of 10.87%.

SIGNIFICANCE OF INDIAN AGRICULTURE AND ALLIED SECTOR:

Economic Significance

o Contributes ~18.4% to India’s GDP (2023–24).

o Despite declining share in GDP, agriculture remains critical for rural employment and
food production.
o Gross Value Added (GVA) at current prices: ₹1,502 thousand crore (2011–12) →
₹4,878 thousand crore (2023–24) → 225% increase.

Employment and Livelihoods

o Provides livelihood to ~45% of India’s total workforce (Periodic Labour Force Survey).
o Especially important for marginal and small farmers (86% of operational holdings).
o MGNREGA complements agri-incomes in lean seasons; 7 crore households benefited
in FY 2023–24.

Food Security and Self-Reliance

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 o India is the world's largest producer of milk, pulses, jute. Among top producers of
rice, wheat, fruits, vegetables.
o Food grain production in 2023–24: ~329 million tonnes.
o PM-AASHA, NFSA, and buffer stock mechanisms ensure food availability and price
stability.

Export and Trade Contribution

o Agriculture exports (2022–23): ~$53 billion. Includes rice, spices, marine products,
sugar, cotton, etc.
o Key to India’s agri-diplomacy with West Asia, Africa, and Southeast Asia.
o Marine exports (fisheries sector) saw 7.0% GVO share in 2023–24, up from 4.2% in
2011–12.

Diversification and Allied Sectors Growth

o Livestock: GVO rose from ₹488k crore (2011–12) to ₹919k crore (2023–24).
o Milk is dominant (65.9% of livestock GVO); meat share increased to 24.1%.
o Fisheries: Marine fish share rose to 49.8% of total fisheries GVO.
o Floriculture: Doubled GVO from ₹17.4k crore to ₹28.1k crore (2011–24).
o Blue Revolution & PM Matsya Sampada Yojana boosted inland and marine fisheries
output.

Regional Development and Inclusive Growth

o Drives regional economic activity, especially in rainfed, tribal, and remote areas,
through programs like one district one product and GI tagging.
o States like Madhya Pradesh, Andhra Pradesh, West Bengal have become agri
powerhouses due to focused interventions.
o MP is now top contributor (19.2%) in condiments & spices GVO.
o Andhra Pradesh and West Bengal dominate fisheries output.

Environmental and Ecological Services

o Agriculture maintains soil fertility, agrobiodiversity, carbon sinks through

agroforestry.
o Forestry and logging GVO increased from ₹149k crore to ₹227k crore (2011–24);
industrial wood share grew from 49.9% → 70.2%.
o National Mission on Sustainable Agriculture (NMSA) promotes climate-resilient
practices.

Technological Advancement and Innovation

o Use of digital agri platforms (e-NAM, Kisan drones), AI for pest detection and yield
forecasting and precision farming and smart irrigation.
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 o Digital Agriculture Mission (2021–25) aims to digitize 100% of land records and
expand agri-tech use.

Women Empowerment
source
o Women form ~33% of the agri workforce, often playing a major role in horticulture,
livestock, seed preservation.
o Support through Self-Help Groups (SHGs) and Mahila Kisan Sashaktikaran Pariyojana
(MKSP).

Strategic and Political Importance

o Agriculture is central to electoral politics, social stability, and rural policy focus.
o Doubling farmers’ income and MSP reforms remain politically sensitive and policy-
priority areas.

CHALLENGES TO INDIAN AGRICULTURE AND ALLIED SECTORS:

Dependence on Monsoon & Climate Variability

o Over 50% of net sown area is rainfed; vulnerable to erratic rainfall and drought.
o Extreme weather events (floods, heatwaves, unseasonal rains) have increased. In
2023, Cyclone Michaung devastated crops in Tamil Nadu and Andhra Pradesh. Bihar
faced floods affecting over 1 lakh hectares in July 2023.
o IMD & ICAR warn that climate change may reduce wheat yield by 6-8% by 2030.

Water Stress and Inefficient Irrigation

o Agriculture uses ~80% of India’s freshwater, but only 49% of gross cropped area is
irrigated (MoA, 2024).
o Over-reliance on groundwater in Punjab, Haryana is unsustainable.
o Punjab’s water table is depleting at over 1 meter per year.

Low Farmer Income and Profitability

o Average monthly income of a farmer household: ₹10,218 (NABARD SAS, 2021).

o High input costs (fertilizer, diesel), poor price realization, and debt trap.
o In Maharashtra, Vidarbha region continues to report farmer suicides due to crop
failure and debt.

Fragmented and Small Landholdings

o 86% of Indian farmers are small and marginal (land <2 ha) – Agri Census 2015–16.
o Limits mechanization, irrigation access, and economies of scale.

Market and Price Volatility

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 o Market access is poor; only ~35% of produce reaches organized markets.
o Farmers face price crashes during bumper harvests due to lack of MSP procurement
or storage.
o Tomato prices in July 2023 crashed to ₹2–3/kg in MP, despite earlier spike to ₹200/kg.

Inadequate Mechanization and Infrastructure

o Mechanization is skewed regionally.

o Cold storage capacity shortfall (~35% nationally); affects perishable produce like
fruits, vegetables, and milk.
o Post-harvest losses amount to ₹92,651 crore annually (MoFPI, 2022).

Low Investment in R&D and Technology Adoption

o Agri R&D investment is ~0.3% of agri GDP (far below global average of 1%).
o Precision farming, drones, and AI tools have limited outreach.
o PM Kisan Drone Yatra launched in 2023; coverage still minimal among marginal
farmers.

Policy and Institutional Issues

o Overlapping schemes, delayed payments under PMFBY, and disputes over MSP
reforms.
o APMCs still dominant in many states; e-NAM adoption incomplete.

Allied Sectors: Underperformance and Structural Issues

o Livestock: Issues with fodder shortage, animal health, and veterinary access. Milk
production up, but profitability down due to input cost rise.
o Fisheries: Overfishing, pollution, and coastal regulation disputes. Disruptions from
climate and export restrictions.

Youth Disengagement and Labour Shortage

o Rural youth moving to urban jobs; agri seen as unprofitable.

o Labour shortage leads to higher harvesting and sowing costs.
o NSSO 2021 shows declining agri workforce share; only 20% of rural youth see farming
as viable career.

WAY FORWARD:

Climate-Resilient and Sustainable Farming

o Doubling Farmers’ Income Committee (2018): Promote agroecology and

diversification for sustainability.
o NITI Aayog (2020): Encourage low-water crops and climate-resilient varieties.

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 o Sikkim: India’s first fully organic state.
o Madhya Pradesh: Water budgeting & drought-tolerant seed varieties in Bundelkhand.

Efficient Water and Input Use

o Ashok Dalwai Committee: Encourage micro-irrigation and soil-specific nutrient

application.
o Gujarat: Drip irrigation for horticulture and cotton.
o Telangana's Mission Kakatiya: Tank restoration improved groundwater and crop
output.

Market Reform and Price Assurance

o Ramesh Chand Committee: Develop regulated value chains, expand e-NAM coverage.
o Dalwai Committee: Focus on contract farming, FPOs, and aggregation models.
o Maharashtra’s MahaFPC and Karnataka’s Raitha Samparka Kendras enable efficient
aggregation.

Strengthening Allied Sectors (Livestock, Fisheries, Forestry)

o National Livestock Mission: Breed improvement, fodder availability.

o Blue Economy Task Force: Promote deep-sea fishing, aquaculture zones.
o AMUL Model (Gujarat): Dairy cooperative success.
o Andhra Pradesh: Integrated aquaculture clusters.

Leveraging Technology and Digital Agri-Ecosystems

o NITI Aayog 2021: Digital platforms for land, weather, pest, and advisory services.
o Karnataka Crop Insurance App, Kisan Drones for nutrient spraying, and e-Choupal by
ITC.

Inclusive Growth and Gender Mainstreaming

o Planning Commission (2011): Recognize women as farmers; increase credit and land
access.
o SEWA Gujarat: Women-led cooperatives in dairy, spices, and floriculture.

Boosting R&D, Extension, and Innovation

o ICAR Roadmap 2030: Increase R&D to at least 1% of agri GDP.

o Dalwai Committee: Modernize KVKs and strengthen real-time advisory.
o TNAU and ICRISAT: Precision agriculture, drought-tolerant crops, ICT in extension.

Infrastructure and Value Chain Development

o Doubling Farmers’ Income Committee: Emphasize cold chains, logistics, and rural
processing hubs.
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 o Mega Food Parks in Punjab and Telangana
o Agri Export Zones in Andhra Pradesh and Maharashtra.

Financial Inclusion and Risk Mitigation

o Expand institutional credit and improve crop insurance claim settlement.

o Odisha’s KALIA Scheme: Direct income support + crop assistance.
o Maharashtra’s Weather-linked Insurance Schemes

Strengthening Governance, Monitoring, and SDG Alignment

o Build real-time agri dashboards for input/output flows, prices, and climate indicators.
o Agrisnet (Odisha), Choupal Pradarshan Kendra (UP) for decentralized planning.

India’s agriculture must transition from production-centric to income-centric, market-

driven, and climate-resilient. A sustainable path requires inter-ministerial coordination,
decentralized planning, and active farmer participation.

PRACTICE QUESTION:

Q. India’s agriculture and allied sectors have witnessed impressive growth, but continue to
face structural, climatic, and institutional challenges. In this context, examine the
significance and challenges of agriculture and allied sectors in India. (15 marks, 250 words)

APPROACH:

Start with a data for agriculture and

Introduction allied sectors.
Q. India’s agriculture and
allied sectors have
witnessed impressive
growth, but continue to Significance of the sector
face structural, climatic, (multidimensional contributions with
data)
and institutional
challenges. In this context, Body
examine the significance
and challenges of Challenges faced (structural,
agriculture and allied environmental, economic)
sectors in India. (15 marks,
250 words)
Conclusion Provide way forward and conclude

MODEL ANSWER:
Contact:8089166792/ilearnoffc@[Link]
Agriculture and its allied sectors—livestock, forestry, and fisheries—form the backbone of
rural India, employing nearly 45% of the workforce and contributing around 18.4% to India’s
GDP (2023–24). With world-leading production in milk, pulses, and spices, India’s agri-sector
is central to food security, livelihoods, and export growth.

Significance of Agriculture and Allied Sectors

1. Economic Value: GVA grew by 225%: ₹1,502k crore (2011–12) → ₹4,878k crore
(2023–24). Crop sector remains dominant (54.1% of total agri output).

2. Livelihood Source: Over 86% of farmers are small and marginal. SHGs and MGNREGA
support seasonal incomes.

3. Food Security: 329 million tonnes of food grain produced (2023–24). India ranks 1st
in milk and pulse production.

4. Trade and Exports: Agri-exports worth $53 billion (2022–23); fisheries GVO rose to
7%.

5. Diversification & Allied Growth: Livestock GVO grew to ₹919k crore; fisheries and
floriculture doubled.

6. Regional Development: States like MP (condiments), Andhra Pradesh (aquaculture)

show targeted success.

7. Ecological Services: Agroforestry, carbon sinks, and sustainable practices promoted

via NMSA.

8. Technological Innovation: e-NAM, precision farming, drones, and Digital Agri Mission
launched.

Key Challenges

1. Climate Dependence: 50%+ area is rainfed; vulnerable to droughts, floods (e.g.,

Cyclone Michaung 2023).

2. Water Stress: Punjab’s water table declining by over 1m/year due to paddy.

3. Low Farmer Income: Avg monthly income: ₹10,218 (NABARD, 2021); high input cost
and debt trap.

4. Fragmented Landholdings: 86% farmers <2 ha → poor mechanization, limited credit.

5. Post-Harvest Losses: ₹92,651 crore annually lost (MoFPI, 2022); cold storage gap at
35%.

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 6. Market Volatility & Infrastructure: Tomato prices crashed in 2023 (₹2/kg in MP); poor
MSP coverage.

7. Allied Sector Gaps: Livestock lacks veterinary care; fisheries affected by climate and
trade restrictions.

8. Youth Disengagement: Only 20% rural youth view farming as viable (NSSO, 2021).

Way Forward

1. Sustainable Farming: Adopt climate-resilient crops (NITI Aayog 2020), expand organic
zones (e.g., Sikkim model).

2. Water Efficiency: Promote drip irrigation (Gujarat) and Mission Kakatiya (Telangana)
for groundwater recharge.

3. Market Reforms: Implement Dalwai and Ramesh Chand Committee reforms:

contract farming, FPOs, full e-NAM adoption.

4. Boost Allied Sectors: Expand PMMSY, integrated dairying (Amul model), agroforestry
for tribal incomes.

5. Tech Adoption: Use drones, AI, and weather apps; expand Digital Agri Mission (2021–
25) and real-time dashboards.

6. Inclusive Models: Recognize women as farmers (Planning Commission 2011), support

SHGs and SEWA cooperatives.

7. Financial Access: Strengthen Kisan Credit Cards, PMFBY, and direct benefit transfers
like Odisha’s KALIA scheme.

To ensure resilient, remunerative, and responsible agriculture, India must shift from a
production-centric to income-centric and climate-smart model, supported by institutional
reforms, digital tools, and inter-sectoral coordination. Sustainable agriculture will not only
uplift farmer incomes but also ensure India’s ecological, nutritional, and economic security.

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