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AGRICULTURE

A significant sector in the Indian economy, the agriculture sector employs over 50% of the country’s workforce. The sector contributed around 18% to India’s Gross Domestic Product (GDP) in FY18. In terms of farm outputs, India ranks second worldwide with a high proportion of agricultural land and diverse agro-climate conditions that support the cultivation of different crops.

The Gross Value Added by agriculture, forestry, and fishing is estimated at Rs 18.55 lakh crore (US$ 265.51 billion) in FY 2019.

As per data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the food processing industry in India received foreign direct investment (FDI) equity inflows worth USD 9.41 billion between April 2000 and June 2019.

One of the largest sectors in the country, Indian agriculture processed foods are exported to more than 120 countries.

  • 1

    India aims at doubling farm income by 2022.

  • 2

    The government of India aims at increasing the average income of a farmer household at current process to Rs 219,724 (US$ 3,420.21) by 2022-23 from Rs 96,703 (US$ 1,505.27) in 2015-16.

  • 3

    Investments worth Rs 8,500 crore (US$ 1.19 billion) have been announced in India for ethanol production.

India ranks first worldwide in terms of the highest net cropped area. The country is also the second largest fruit producer in the world.

India is the largest producer, exporter, and consumer of spices and spice products. In the year 2017-18, the county’s spice exports amounted to USD 3.1 billion.

The Indian agriculture in India is the primary source of livelihood for around 58% of the population.
The Goss Value Added by agriculture and allied industries was estimated to be around USD 271.00 billion in the fiscal year 2018.

  • The first mega food park in Rajasthan was inaugurated in March 2018.
  • In 2019, India started exporting sugar to China.
  • Prime Minister Narendra Modi launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and transferred Rs 2,021 crore (US$ 284.48 million) to the bank accounts of more than 10 million beneficiaries on February 24, 2019.
  • In November 2019, Coca-Cola launched ‘Rani Float’, fruit juices to step out of its trademark fizzy drinks.

  • 100% foreign direct investment is allowed in marketing of food products and in food product e-commerce under the automatic route.
  • As per the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity inflow of about US$ 9.08 billion between April 2000 and March 2019
  • Foreign direct investments (FDI) in India's food processing sector is stood at US$ 628.24 million in 2018-19.

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