India’s Agriculture Sector Demonstrates Resilience: Economic Survey 2024-25

Alankar Mishra

Author

Updated: 16-04-2025 at 12:46 PM

India’s Agriculture Sector Demonstrates Resilience: Economic Survey 2024-25

The agriculture sector and its subsystems are the most dominant in the Indian economy regarding employment, national income, as well as export earnings. With the economic survey 2024-2025, introduced by the Union Finance Minister, Nirmala Sitaraman, it is evident that the sector enjoys growth from policies and advancements made in technology.

Growth Rate: The agriculture sector has, on average from FY17 to FY23, grown by 5% every year, indicating its strong growth in the face of challenges in the economy.
Gross Value Added (GVA): The GVA for agriculture and its sectors increased from 24.38% in FY15 to 30.23% in FY23, adding 1% to India’s overall GVA.
Foodgrain Production: The Kharif food grain production in 2025 will increase by 89.37 LMT with a projection of 1,647.05 LMT (Lakh Metric Tonnes).
Agricultural Income: The Farmer’s income has increased by 5.23% per year for the last 10 years.

Key Highlights

Category	Details
Annual Agriculture Growth Rate (FY17-FY23)	5%
Kharif Foodgrain Production (2024)	1,647.05 LMT (+89.37 LMT from 2023)
Agricultural Income Growth Rate	5.23% per annum
Agriculture GVA Contribution (FY15-FY23)	Increased from 24.38% to 30.23%
MSP Increases (FY25)	Arhar: +59%, Bajra: +77%, Masur: +89%, Rapeseed: +98%
Livestock Sector GVA Contribution (FY23)	5.5%, with 12.99% CAGR
Total Fish Production (FY23)	184.02 Lakh Tonnes
Food Exports (FY24)	$46.44 billion (11.7% of total exports)

Government Initiatives In Agriculture

1. Minimum Support Price (MSP) Reforms

The Union Budget of 2018-19 set practically a Minimum Support Price of 1.5 times the weighted average cost of production.

The budget for FY25 heavily increased the MSP for nutri-cereals (Shree Anna), pulses, and oilseeds:

Arhar MSP: +59%
Bajra MSP: +77%
Masur MSP: +89%
Rapeseed MSP: +98%

2. Irrigation Development: Per Drop More Crop (PDMC)

The PDMC initiative helps with effective water usage in farming under the PM Krishi Sinchayee Yojana funding efforts used under the program.
An expenditure of ₹21,968.75 crore is budgeted for PDMC from FY16 to FY25 to incorporate micro-irrigation schemes over an area of 95.58 lakh hectares.
Irrigation Projects Funded will provide a 2% interest subvention to the states that have approved 4,709 crore so far.

3. Digital Agriculture Mission & e-NAM

The Digital Agriculture Mission encourages the use of technology in farming.
The e-National Agriculture Market (e-NAM) allows farmers to see live market rates and link with other traders across the country.

4. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Directly aids farmers through direct financial payments.
Strengthens economic security and guarantees profitable prices.

Allied Sectors Driving Agricultural Growth

India’s Agricultural Development Comes from Important Allied Sectors Such As Animal Husbandry, Fisheries, And Floriculture, which are growing due to the government and export opportunities. Let's examine their shares and recent changes.

1. Growth of The Livestock Sector

Livestock accounts for 5.5 per cent of total GVA with a CAGR growth of 12.99 per cent.
Total livestock output in FY23: ₹ 17.25 lakh crore (205.81 billion USD)
Revenue From Milk Industry: ₹11.16 Lakh Crore (133.16 billion USD)

Government Support:

Rashtriya Gokul Mission for the conservation of indigenous breeds.
Livestock Health And Disease Control Program Towards Better Welfare Of Livestock

2. Fisheries Sector Expansion

Total Fish Production (FY23): 184.02 Lakh Tonnes (compared to 95.79 Lakh Tonnes in FY14).
Seafood Exports (FY20 – FY24): From ₹46,662.85 crore to ₹60,523.89 crore (an increase of 29.7%).

Key Schemes:

Pradhan Mantri Matsya Sampada Yojana (PMMSY).
Fisheries & Aquaculture Infrastructure Development Fund (FIDF).
National Fisheries Digital Platform (NFDP): in 4 months, 16.35 lakh fishers registered.

3. Floriculture: A Sunrise Industry

For FY25, there was a growth of 14.55% in floriculture exports.
The aggregate area under floriculture is 297000 hectares.
Export for FY 24 was 19678 metric tons valued at 717.83 crores INR or 86.63 million USD.

Food Processing and Export Growth

India’s food processing sector is growing at a remarkable pace, increasing both exports and investment. The government is also boosting this development by providing tailored incentives and implementing certain policies. Let us take a glance at the important developments regarding food processing and food exports.

1. Food Exports and Processing Industry

Food Exports and Imports (FY24): $46.44 billion in food exports, 11.7% of total exports.
Processed Foods in agri-food exports: 14.9% in FY 2018, 23.4% in FY 2024.

2. Production Linked Incentive (PLI) Scheme for Food Processing

Investment (By Oct 2024): ₹8,910 crores.
Total incentives disbursed: ₹1,084.01 crore.
Total Approved Applications: 171 beneficiaries.

Public Distribution System And e-KYC Implementation

To improve efficiency and transparency, the Public Distribution System is being improved. The government is using e-KYC to reduce fraudulent activities as well as enhance access to ration benefits. Moreover, warehouse-based lending is a new form of financial assistance available to farmers.

Government target: Ensure that PDS is fully e-KYC compliant under the ONORC scheme.
Implementation of Aadhaar authentication at FPS is aimed towards minimising impersonation and fraud.
The Credit Guarantee Scheme for e-NWR allows post-harvest loans to be issued to farmers using stored commodities as collateral.

Conclusion

India’s agriculture sector, which contributes significantly to the economy, has seen remarkably impressive growth. The Agriculture and Allied Specialised Economic Survey for the year 2024-25 highlights the incremental growth in productivity, surge in exports, government allocations, and developments in allied businesses. In addition to the increase in livestock and fisheries, the growth projection for this sector is expected to be 5% annually. The Kharif food production target has been set to 1,647.05 LMT, cementing the agro sector as a vital pillar for the Indian economy.

It is expected that the government’s investment in irrigation digitalisation and farmer support programs will increase income levels, improve food security, and ensure sustainable farming. Embracing modernised industrial agriculture will give farmers the empowerment needed to stimulate rural economies and achieve long-term agricultural sustainability.

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