19th February 2025:
The objective of the study was to analyse agriculture and factors impacting agriculture in India by applying the technique of trend analysis, correlation and regression.
The highlights of the Study are as follows:
1. Robust growth of India’s agriculture and allied sector
2. India’s agriculture sector has transformed, evolving from a food-scarce nation to a food-surplus powerhouse
3. India’s overall export performance remains robust, highlighting the sector’s resilience and its significant role in the global agricultural trade landscape
4. For the year 2024-25, PHDCCI projects foodgrain production grow by 2%, to about 3357 lakh tonnes
5. PHDCCI projections indicate a significant expansion in agricultural and processed food products exports, with exports reaching to USD 125 billion by FY2030, USD 250 billion by FY2035, USD 450 billion by FY2040, and USD 700 billion by FY2047
6. PHDCCI projects that India’s food processing sector is expected to reach USD 700 billion by FY 2030, USD 1100 billion by FY2035, USD 1500 billion by FY 2040 and USD 1900 billion by FY 2040 and USD 2150 billion by 2047
7. While some states excel in agricultural performance, their overall economic growth remains modest. This highlights an opportunity to better leverage agricultural success to drive broader economic development. By strengthening linkages between agriculture and other sectors, these states can unlock new avenues for growth, fostering more inclusive and balanced economic growth
8. Overall, the regression analysis suggests that food grain production in India is significantly influenced by factors such as electricity availability, warehousing capacity, and gross irrigated area
9. Rainfall does not appear to have a statistically significant impact, which contrasts with the traditional view of India’s heavy reliance on monsoon for agriculture. They have a moderate degree of association