At about 58%, more than half of India’s population is engaged in agriculture. The contribution to the world food trade made by India has been consecutively increasing year on year. As India is one of the largest countries in terms of size, it enjoys the benefit of several agro-climatic zones which enables the country to grow a vast variety of agricultural commodities. The Indian food & grocery market is the 6th largest in the world. India is also the 2nd largest fruit producer in the world. Due to cost effective labour availability in India and adoption of innovative technology by large corporations as well as small farmers in such labour-intensive fields, the country has been able to increase the yield of agricultural products while reducing costs making the country a preferred export hub. This has enabled India to become one of the fastest growing markets for agricultural equipment.

With the advent of the ‘Make in India’ initiative, the government is trying to localise production of aircrafts in India. Government owned enterprises are also trying to indigenously design and manufacture new regional jet aircrafts and helicopters for both defence and private sector. Earlier the focus was on assembling the aircraft in India but in the recent years there has been a shift from assembling the aircraft to manufacturing the components used in the aircrafts by way of acquisition of foreign technology or by foreign suppliers setting up manufacturing facilities in India.  

Growth Drivers

  • A loan agreement of ~USD 318 million was signed between the Government of India, State of Tamil Nadu and the World Bank in December 2017 for the ‘Tamil Nadu Irrigated Agriculture Modernization Project' which is expected to benefit ~500,000 farmers in the state.
  • The Government of India has allowed 100 % FDI in marketing of food products and in food product e-commerce under the automatic route in India.

Key Players


  • AGCO
  • Advanta Ltd.
  • CNH Industrial
  • Daedong
  • Deere & Company
  • DuPont India
  • Hindustan Unilever Ltd.


  • Britannia Industries Ltd.
  • Escorts Group
  • GDP Crop Science
  • Godrej Agrovet
  • Mahindra&Mahindra
  • NSL
  • Nupro
  • Rallies India

Market Statistics

  • Gross Value Added (GVA) by the agriculture, forestry and fishing industry in India is estimated at ~USD 275 billion in FY18.
  • Food grain production in India is estimated at ~280 million tonnes (MT) with production of rice and wheat in the country estimated at ~112 MT and ~99 MT respectively in FY17.
  • In FY17, milk production is estimated at ~165.4 MT, while meat production is estimated at ~7.4 MT.
  • In FY17, milk production is estimated at ~165.4 MT, while meat production is estimated at ~7.4 MT.