- Agriculture sector has shown an annual growth rate of 4.18% at constant prices.
- Gross Capital Formation (GCF) of the agriculture sector grows at the rate of 19.04 % in 2022-23.
- Livestock sector grows at a CAGR of 7.38 %.
- Fisheries sector grows at CAGR 8.9 %.
- Banks issued 7.5 crores Kisan Credit Card (KCC) with a limit of ₹9.4 lakh crores.
- GVA in the food processing sector increases from ₹1.30- ₹1.92 lakh cr.
New Delhi: The Economic Survey 2023-24, presented in Parliament by Union Finance and Corporate Affairs Minister Nirmala Sitharaman, paints a picture of a resilient and growing agricultural sector in India, while also highlighting areas for improvement and future focus.
Agricultural Growth and Contribution
The survey reports that the agriculture sector, which supports 42.3% of India’s population, contributes 18.2% to the country’s GDP at current prices. Over the last five years, the sector has shown robust growth, registering an average annual growth rate of 4.18% at constant prices. However, for 2023-24, the growth rate is estimated at 1.4%, indicating some challenges faced by the sector.
Record Production and Self-Sufficiency Efforts
In 2022-23, India achieved record foodgrain production of 329.7 million tonnes and oilseed production of 41.4 million tonnes. Although 2023-24 saw a slight dip to 328.8 million tonnes of foodgrain production due to poor and delayed monsoons, the country has made significant strides in reducing dependence on imported edible oils. The share of imported edible oil has decreased from 63.2% in 2015-16 to 57.3% in 2022-23, despite rising domestic demand.
Investment and Research
The survey emphasizes the importance of investment in agricultural research, estimating a payoff of ₹13.85 for every rupee invested. In 2022-23, ₹19.65 thousand crore was spent on agriculture research. The Gross Capital Formation (GCF) in agriculture grew by 19.04% in 2022-23, with the GCF as a percentage of Gross Value Added (GVA) rising to 19.9% in the same year.
Government Initiatives and Schemes
Several government schemes have been highlighted in the survey:
1. e-NAM Scheme: Implemented to promote efficiency in agriculture marketing and improve price discovery, with over 1.77 crore farmers and 2.56 lakh traders registered as of March 2024.
2. Farmer Producer Organizations (FPOs): 8,195 FPOs have been registered under a new scheme launched in 2020, with equity grants of ₹157.4 crore released to 3,325 FPOs.
3. Pradhan Mantri Kisan Maandhan Yojna (PMKMY): Offers a monthly pension of ₹3,000 to enrolled farmers upon reaching 60 years of age, with 23.41 lakh farmers enrolled as of July 2024.
4. Pradhan Mantri Fasal Bima Yojana (PMFBY): The world’s largest crop insurance scheme in terms of farmer enrollment, covering 610 lakh hectares in 2023-24.
5. Kisan Credit Card (KCC): As of January 31, 2024, banks have issued 7.5 crore KCCs with a limit of ₹9.4 lakh crores, significantly improving agricultural credit accessibility.
6. Agriculture Infrastructure Fund (AIF): Mobilized an investment of ₹73,194 crore as of July 2024, supporting various infrastructure projects.
Allied Sectors and Food Processing
The survey highlights the growing importance of allied sectors in Indian agriculture:
1. Livestock: Grew at a CAGR of 7.38% from 2014-15 to 2022-23, contributing 30.38% to the total GVA in agriculture and allied sectors in 2022-23.
2. Fisheries: Grew at a CAGR of 8.9% between 2014-15 and 2022-23, supporting approximately 30 million people.
3. Food Processing: The sector’s GVA increased from ₹1.30 lakh crore in 2013-14 to ₹1.92 lakh crore in 2022-23, constituting 7.66% of GVA in Manufacturing.
Challenges and Future Focus
The survey calls for:
1. Shifting smallholder farmers to high-value agriculture to increase incomes and spur manufacturing demand.
2. Enhancing private sector investment in agriculture, focusing on technology, production methods, and marketing infrastructure.
3. Developing post-harvest infrastructure and the food processing sector to reduce wastage and improve farmers’ incomes.
4. Promoting sustainable farming methods through initiatives like PM-PRANAM, which incentivizes states to reduce chemical fertilizer use.
5. Further boosting agriculture investment to achieve the goal of doubling farmers’ income, requiring an annual growth rate of 12.5% in agriculture investment.
The Economic Survey 2023-24 presents a comprehensive view of India’s agricultural sector, showcasing its resilience and growth while identifying areas for improvement. The government’s various initiatives and schemes aim to address challenges and promote sustainable growth in the sector. As India continues to strive for food security and improved farmer welfare, the focus on investment, technology, and sustainable practices will be crucial in shaping the future of Indian agriculture.
