Agriculture Sector- All Set to Reap a Golden Harvest

Led by well-planned government initiatives and the beefing up of infrastructure, Bhavya Rathod explains how India's agriculture sector is bounding ahead at a rapid pace, primarily on account of exports. In the coming years, the country is all set to create a strong global footprint with leads in sugar, Basmati rice, fisheries and food processing

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About 58 percent of India's population relies primarily on agriculture as a source of income, making India one of the key players in the global agricultural industry. India is the world's largest producer of milk, pulses and spices. It also has the largest herd of cattle, and the largest area planted with wheat, rice and cotton. It is the second-largest producer of wheat, rice, cotton, sugar, farmed fish, fruit, vegetables, tea and farmed vegetables.

About half of the population of India is employed in the agricultural industry, which in the world has the second-largest amount of agricultural land. The pandemic and the ensuing lockdowns caused some unrest and fear around the world.

Due to the resulting significant supply and demand side interruptions, firms dealt with a variety of problems throughout the year. While the output of significant industries decreased, the agriculture sector held up well and increased by 3.6 percent over the course of the year. Agriculture, a crucial sector of the Indian economy that accounts for 25 percent of the nation's GDP, offers rural populations a wide range of employment options, food security and therefore a sizeable domestic market for manufactured goods. Between April 2000 and June 2022, FDI inflow into the sector totalled USD 2,600.70 million, showcasing a significant rise in investments.

Government Initiatives

The government has taken several measures in order to access the agricultural market by making aggressive investments in infrastructure development including irrigation projects and rural highways. In order to support the industry, the government has also implemented a number of subsidies and tax breaks. In general, the Indian agricultural industry has the ability to significantly contribute to the nation's economic development. In the Union Budget 2022-23: